RFEM ETF — Holdings & Analysis

The First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) is an actively managed fund seeking capital appreciation by investing in emerging market equities.

With approximately $0.07 billion in assets under management, RFEM distinguishes itself through its dynamic approach to emerging markets, incorporating forward foreign currency exchange contracts. The fund's expense ratio is 0.99%. A significant portion of the portfolio is allocated to technology and financial services sectors, with a focus on companies in Taiwan and India.

First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) ETF — Price, Holdings & Analysis

The First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) is an actively managed fund seeking capital appreciation by investing in emerging market equities. With approximately $0.07 billion in assets under management, RFEM distinguishes itself through its dynamic approach to emerging markets, incorporating forward foreign currency exchange contracts. The fund's expense ratio is 0.99%. A significant portion of the portfolio is allocated to technology and financial services sectors, with a focus on companies in Taiwan and India.

ETF Overview

The First Trust RiverFront Dynamic Emerging Markets ETF is an actively managed exchange-traded fund. The Fund's investment objective is to provide capital appreciation. Under normal market conditions, the Fund will seek to achieve its investment objective by investing at least 80% of its net assets (including investment borrowings) in a portfolio of equity securities of emerging market companies, including through investments in common stock, depositary receipts and real estate investment trusts, and forward foreign currency exchange contracts.

RFEM aims for capital appreciation by investing at least 80% of its net assets in emerging market equity securities. This includes common stock, depositary receipts, and real estate investment trusts. The fund's active management strategy allows it to dynamically adjust its holdings based on market conditions, differentiating it from passive, index-tracking ETFs. RFEM's portfolio is heavily weighted towards the technology sector (29.7%) and financial services (22.5%). The fund's top holdings include Taiwan Semiconductor Manufacturing Co Ltd (14.98%), Tencent Holdings Ltd (3.77%), and iShares MSCI China ETF (3.67%). This indicates a focus on large-cap companies in Taiwan and China, as well as a broader exposure to Chinese equities through the iShares ETF. The fund also has significant exposure to India, making it suitable for investors seeking targeted emerging market exposure with active management.

Risk Metrics

RFEM's active management and concentrated sector allocations introduce specific risks. The significant allocation to the technology sector (29.7%) means the fund's performance is closely tied to the performance of technology companies in emerging markets. Similarly, the fund's country exposure is concentrated in Taiwan (27.4%) and India (17.5%), making it vulnerable to economic and political developments in these regions. With a 3-year beta of 0.79, RFEM is less volatile than the broader market. However, the fund's expense ratio of 0.99% is relatively high, which can create a drag on performance, especially in periods of lower returns. these may be worth researching factors when evaluating RFEM's risk profile. Past performance does not guarantee future results.

Expense Ratio

0.99%

What does RFEM hold?

Holding	Weight
Taiwan Semiconductor Manufacturing Co Ltd (2330.TW)	14.98%
Tencent Holdings Ltd (0700.HK)	3.77%
iShares MSCI China ETF (MCHI)	3.67%
MediaTek Inc (2454.TW)	2.60%
Alibaba Group Holding Ltd Ordinary Shares (9988.HK)	2.41%
Kia Corp (000270.KS)	2.15%
Unimicron Technology Corp (3037.TW)	2.07%
International Container Terminal Services Inc (ICT.XPHS)	2.03%
Industrial And Commercial Bank Of China Ltd Class H (01398)	2.00%
Hyundai Motor Co (005380.KS)	1.86%

How Is the Fund Allocated?

Sector	Weight
Technology	29.7%
Financial Services	22.5%
Consumer Cyclical	13.5%
Industrials	8.5%
Communication Services	6.1%
Energy	6.1%
Basic Materials	4.9%
Consumer Defensive	3.7%
Healthcare	2.9%
Utilities	1.3%
Real Estate	0.8%

Country	Weight
Taiwan	27.4%
India	17.5%
China	11.8%
South Korea	6.0%
United States	5.5%
Brazil	4.4%
Turkey	3.7%
Thailand	3.4%
Hong Kong	2.6%
Poland	2.4%

Dividend Yield

0.00%

First Trust Europe AlphaDEX Fund (FEP) — 0.80% expense ratio
Dimensional - International Core Equity Market ETF (DFAI) — 0.18% expense ratio
WisdomTree Global High Dividend Fund (DEW) — 0.58% expense ratio
First Trust Developed Markets ex-US AlphaDEX Fund (FDT) — 0.80% expense ratio
First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) — 0.80% expense ratio
WisdomTree International High Dividend Fund (DTH) — 0.58% expense ratio
WisdomTree International Hedged Quality Dividend Growth Fund (IHDG) — 0.58% expense ratio
JPMorgan BetaBuilders Emerging Markets Equity ETF (BBEM) — 0.15% expense ratio

FT Energy Income Partners Enhanced Income ETF (EIPI) (Sector Equity) — 1.11% expense ratio
First Trust Europe AlphaDEX Fund (FEP) (International Equity) — 0.80% expense ratio
First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) (International Equity) — 0.80% expense ratio
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) (Sector Equity) — 0.56% expense ratio
First Trust Developed Markets ex-US AlphaDEX Fund (FDT) (International Equity) — 0.80% expense ratio
First Trust Dow Jones International Internet ETF (FDNI) (International Equity) — 0.65% expense ratio

Risk Metrics

Beta: 0.79

Questions & Answers

What is RFEM and what does it track?

The First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) is an actively managed fund that aims to provide capital appreciation by investing in emerging market equities.

Unlike passive ETFs that track a specific index, RFEM's investment strategy involves actively selecting and weighting its holdings based on market conditions.

What is the expense ratio for RFEM?

RFEM has an expense ratio of 0.99%. This means that for every $10,000 invested in the fund, $99 is deducted annually to cover operating expenses.

While this provides active management and dynamic allocation, it is higher than many passive emerging market ETFs. Investors should weigh the potential benefits of active management against the higher cost when considering RFEM. The category average expense ratio for international equity ETFs is approximately 0.44%.

What are the top holdings in RFEM?

RFEM's top holdings reflect its focus on technology and large-cap companies in emerging markets. As of 2026-03-15, the top three holdings are Taiwan Semiconductor Manufacturing Co Ltd (14.98%), Tencent Holdings Ltd (3.77%), and iShares MSCI China ETF (3.67%).

Other significant holdings include MediaTek Inc (2.60%) and Alibaba Group Holding Ltd Ordinary Shares (2.41%).

Is RFEM a good long-term investment?

Whether RFEM is a suitable long-term investment depends on an individual's investment goals, risk tolerance, and time horizon. RFEM offers exposure to emerging market equities with active management, which could potentially lead to outperformance compared to passive strategies.

However, the fund's higher expense ratio of 0.99% can impact long-term returns.

How does RFEM compare to similar ETFs?

RFEM differentiates itself from similar ETFs through its active management strategy and dynamic allocation approach. Many emerging market ETFs are passively managed and track broad market indices like the MSCI Emerging Markets Index.

RFEM's expense ratio of 0.99% is higher than many passive ETFs, which often have expense ratios below 0.20%.

Does RFEM pay dividends?

As of 2026-03-15, RFEM has a dividend yield of 0.00%. This indicates that the fund is not currently distributing dividends to its shareholders. The fund's focus on capital appreciation rather than income generation may explain the absence of dividend payments.

Investors seeking dividend income from emerging market equities may want to consider other ETFs with a higher dividend yield.