What this ETF is trying to do

The FIRST TRUST WCM DEVELOPING WORLD EQUITY ETF (ticker: WCME) is an exchange-traded fund designed to invest in companies located in developing parts of the world. This ETF focuses on a variety of international markets to provide exposure to growing economies.

What the numbers show

As of October 6, 2026, the current price of WCME is $19.72. Looking at historical performance, we can see how the share price has moved:

• Year-to-Date (YTD) Price Return: The share price has increased by approximately 14.51% since the start of the year.

• One-Year Price Return: Over the last 12 months, the share price rose by approximately 13.10%.

• Estimated Price from Roughly One Year Ago: Based on reconstructed data, the price was approximately $17.43 one year ago.

It is important to distinguish between price return and total return. Price return only tracks the change in the share price itself. Total return includes both the price changes and any distributions (cash payments) made to investors.

For WCME, the total returns were slightly higher than the price returns:

• YTD Total Return: Approximately 14.82%.

• One-Year Total Return: Approximately 13.50%.

Income and distribution explanation

WCME provides some cash income through distributions, but it is not primarily an income-focused fund. The distribution yield is approximately 0.34%. This number represents the cash distributions relative to the current ETF price.

The fund has an income rating grade of "C." Over the last 12 months, there were 2 payouts. The distribution frequency is described as "irregular" or "less frequent."

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling market price can sometimes look like erosion, they are different things.

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion. However, the fund's erosion-risk score is 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Top Holdings

The following are the top holdings in the portfolio (note that this is a partial list):

• Taiwan Semiconductor Manufacturing Co Ltd: 13.67%

• SK Hynix Inc: 5.01%

• SK Square: 4.49%

• Teva Pharmaceutical Industries Ltd: 4.41%

• Samsung Electronics Co Ltd: 4.34%

• Wuxi Biologics (Cayman) Inc: 4.00%

• Embraer SA ADR: 3.73%

• Glencore PLC: 3.42%

• KB Financial Group Inc: 3.26%

• Prio SA: 2.83%

Please remember that holdings can change over time.

Pros

• The fund has shown positive price returns both year-to-date and over the last year.

• The erosion-risk score suggests there has been no detected price erosion.

Cons

• The distribution yield is relatively low (0.34%).

• Distributions are irregular and occur less frequently.

Beginner takeaway

WCME is an ETF that tracks companies in developing markets. While it has seen recent growth in its share price, it is not a high-income fund, as evidenced by its low distribution yield and irregular payout schedule.