First Trust Bloomberg Emerging Market Democracies ETF

Frequently Asked Questions About EMDM

What does EMDM invest in?

EMDM tracks an index of stocks providing exposure to emerging market countries that Freedom House designates as electoral democracies. Freedom House is a non-profit, US organization that conducts research and advocacy on democracy, political freedom, and human rights. Countries that are able to meet high standards for political rights and civil liberties, are considered to be electoral democracies. The standards require respect for the rule of law and civil liberties such as, the right to assemble, fair voting practices, and basic political competition. The top 100 companies by market cap from countries meeting these standards are selected for the index. Components are weighted based on the sum of their market cap and overall electoral democracy score. As a result, the portfolio favors large-cap companies from nations with higher democracy scores. The index is reconstituted annually in April and rebalanced semi-annually in April and October.

What is the expense ratio of EMDM?

First Trust Bloomberg Emerging Market Democracies ETF (EMDM) charges an expense ratio of 0.75%. This is the annual fee deducted from fund assets to cover management and operations.

How big is EMDM?

First Trust Bloomberg Emerging Market Democracies ETF (EMDM) manages $38.6M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is EMDM actively managed or an index fund?

EMDM is a passive index fund — it tracks a published benchmark by holding the constituents in their published weights. Index funds typically charge low expense ratios (EMDM's is 0.75%) because there's no security selection cost.

When was EMDM launched?

First Trust Bloomberg Emerging Market Democracies ETF (EMDM) launched in March 2023 and is managed by First Trust.

How has EMDM performed?

EMDM's total return — price change plus reinvested distributions — is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.