CEMDX vs JHEM Fund Comparison

A comparison between CEMDX and JHEM based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on CEMDX vs JHEM

Here's an in depth look at the differences between Cullen Emerging Markets High Dividend Fund Retail Class ($CEMDX) and John Hancock Multifactor Emerging Markets ETF ($JHEM).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

35% FI Score
  • cemdx
  • Mutual Fund
  • International Stocks
  • Emerging Markets

Cullen Emerging Markets High Dividend Fund Retail Class

Expenses: 1.25% (Better than 1% of similar funds)

This is a bad choice for a Emerging Markets International Stocks fund. See why »

65% FI Score
  • jhem
  • ETF
  • International Stocks
  • Emerging Markets

John Hancock Multifactor Emerging Markets ETF

Expenses: 0.49% (Better than 1% of similar funds)

This is an OK choice for a Emerging Markets International Stocks fund. See why »

$CEMDX is classified as a Mutual Fund while $JHEM is classified as an ETF. Even though one of these is a mutual fund and the other is an ETF, that doesn't matter too much for their holdings. Both ETFs and mutual funds are just containers to hold lots of investments inside of them.

The biggest differences between these two is where they may be offered. ETFs are more widely availble from a larger number of investment apps and websites. Mutual funds, on the other hand, are generally offered by the platform they're issued by (Fidelity funds on Fidelity, Vanguard funds on Vanguard). Usually 401(k)'s will offer both ETFs and Mutual Funds. If you're investing outside of a 401(k), I'd recommend you verify the fees associated with ETF and mutual fund transactions. Some platforms charge an additional fee to purchase a mutual fund.

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Both of these funds are International Stocks Emerging Markets funds – which means they're likely both investing in about the same investments behind the scenes.

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

CEMDX JHEM
Market Score 4.6 /10 6.6 /10
Category Score 5.0 /10 5.0 /10
Total 9.6 11.6

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $JHEM

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, CEMDX has an expense ratio of 1.25% while JHEM has an expense ratio of 0.49%.

Winner: $JHEM

Fund Size Comparison

One place these two funds differ is in their total assets under management. This is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

In the case of these two funds, CEMDX is a small fund with 243 Million in assets under management. JHEM, on the other hand, is a medium fund with 668 Million in assets under management.

Winner: $JHEM, John Hancock Multifactor Emerging Markets ETF

Which Should You Choose? CEMDX or JHEM?

Since both of these funds are International Stocks Emerging Markets funds, you'll most likely only need to invest in one of these funds – not both. Running both of these funds through Minafi's FI Score algorithm, gives CEMDX a score of 35 and JHEM a score of 65.

Neither of these funds has an FI Score above 90 – which is a red flag. I'd look into more funds to find one with a higher FI Score.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$CEMDX

Cullen Emerging Markets High Dividend Fund Retail Class

35

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Ratings
Rating Type Rating
Expense Ratio Score 5 /10
Expense Rating 0 /10
Market Score 5 /10
Category Score 5 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Aug-31-2012
Exchange NMFQS
Expense Ratio 1.250%
Net Assets 243 Million
Yield 4.41%
Holdings
Description Info
Market International Stocks
Category Emerging Markets
Sectors
  • Basic Materials 6.46%
  • Communication Services 1.80%
  • Consumer Cyclical 7.93%
  • Consumer Defensive 9.05%
  • Energy 2.53%
  • Financial Services 17.67%
  • Healthcare 1.52%
  • Industrials 8.99%
  • Real Estate 13.75%
  • Technology 24.15%
  • Utilities 6.15%
Regions
  • Africa/Middle East 1.80%
  • Asia Developed 40.06%
  • Asia Emerging 28.22%
  • Europe Developed 3.14%
  • Europe Emerging 11.78%
  • Latin America 9.18%
  • North America 3.27%
  • United Kingdom 2.55%

$JHEM

John Hancock Multifactor Emerging Markets ETF

65

Read More
Ratings
Rating Type Rating
Diversification Score 7 /10
Expense Ratio Score 9 /10
Expense Rating 5 /10
Market Score 7 /10
Category Score 5 /10
Overview
Overview Details
Fund Type ETF
Exchange NYSE ARCA
Expense Ratio 0.490%
Net Assets 668 Million
Yield 2.91%
Holdings
Description Info
Market International Stocks
Category Emerging Markets
Sectors
  • Basic Materials 7.78%
  • Communication Services 13.30%
  • Consumer Cyclicals 11.45%
  • Consumer Defensive 7.32%
  • Energy 7.71%
  • Financial Services 21.89%
  • Healthcare 3.07%
  • Industrials 4.11%
  • Real Estate 3.45%
  • Technology 16.63%
  • Utilities 3.30%
Regions
  • Africa/Middle East 4.52%
  • Asia Developed 29.24%
  • Asia Emerging 52.29%
  • Europe Emerging 4.66%
  • Latin America 9.30%

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