EMB vs. PCY
EMB (iShares J.P. Morgan USD Emerging Markets Bond ETF) and PCY (Invesco Emerging Markets Sovereign Debt ETF) are both Emerging Markets Bonds funds - EMB tracks the J.P. Morgan EMBI Global Core Index while PCY tracks the DB Emerging Market USD Liquid Balanced Index. Both are passively managed. Over the past 10 years, EMB returned 3.32%/yr vs 2.76%/yr for PCY. Their correlation of 0.81 suggests significant overlap in exposure. EMB charges 0.39%/yr vs 0.50%/yr for PCY.
Performance
EMB vs. PCY - Performance Comparison
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Returns By Period
In the year-to-date period, EMB achieves a 2.33% return, which is significantly lower than PCY's 2.88% return. Over the past 10 years, EMB has outperformed PCY with an annualized return of 3.32%, while PCY has yielded a comparatively lower 2.76% annualized return.
EMB
- 1D
- -0.34%
- 1M
- 1.72%
- YTD
- 2.33%
- 6M
- 2.30%
- 1Y
- 11.30%
- 3Y*
- 9.42%
- 5Y*
- 1.91%
- 10Y*
- 3.32%
PCY
- 1D
- -0.49%
- 1M
- 2.56%
- YTD
- 2.88%
- 6M
- 2.98%
- 1Y
- 14.69%
- 3Y*
- 10.82%
- 5Y*
- 1.46%
- 10Y*
- 2.76%
EMB vs. PCY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 2.33% | 13.85% | 5.54% | 10.62% | -18.63% | -2.23% | 5.42% | 15.48% | -5.47% | 10.28% |
PCY Invesco Emerging Markets Sovereign Debt ETF | 2.88% | 16.31% | 2.55% | 18.48% | -24.47% | -4.30% | 2.29% | 17.66% | -6.16% | 9.71% |
Correlation
The correlation between EMB and PCY is 0.95, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.94 |
Correlation (All Time) Calculated using the full available price history since Dec 19, 2007 | 0.81 |
The correlation between EMB and PCY shifts across timeframes, from 0.81 (all time) to 0.95 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
EMB vs. PCY — Risk / Return Rank
EMB
PCY
EMB vs. PCY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) and Invesco Emerging Markets Sovereign Debt ETF (PCY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| EMB | PCY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.03 | ||
| Sortino ratioReturn per unit of downside risk | +0.12 | ||
| Omega ratioGain probability vs. loss probability | 1.39 | 1.36 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 2.52 | 2.50 | +0.02 |
| Martin ratioReturn relative to average drawdown | 10.72 | 10.12 | +0.61 |
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Drawdowns
EMB vs. PCY - Drawdown Comparison
The maximum EMB drawdown since its inception was -34.70%, smaller than the maximum PCY drawdown of -49.13%. Use the drawdown chart below to compare losses from any high point for EMB and PCY.
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Drawdown Indicators
| EMB | PCY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.70% | -49.13% | +14.43% |
Max Drawdown (1Y)Largest decline over 1 year | -4.51% | -5.91% | +1.40% |
Max Drawdown (3Y)Largest decline over 3 years | -7.95% | -11.52% | +3.57% |
Max Drawdown (5Y)Largest decline over 5 years | -28.74% | -37.17% | +8.43% |
Max Drawdown (10Y)Largest decline over 10 years | -28.74% | -37.78% | +9.04% |
Current DrawdownCurrent decline from peak | -0.34% | -0.49% | +0.15% |
Average DrawdownAverage peak-to-trough decline | -5.05% | -6.96% | +1.91% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.06% | 1.46% | -0.40% |
Volatility
EMB vs. PCY - Volatility Comparison
The current volatility for iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) is 1.77%, while Invesco Emerging Markets Sovereign Debt ETF (PCY) has a volatility of 2.18%. This indicates that EMB experiences smaller price fluctuations and is considered to be less risky than PCY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| EMB | PCY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.77% | 2.18% | -0.41% |
Volatility (6M)Calculated over the trailing 6-month period | 4.70% | 5.99% | -1.29% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.69% | 7.53% | -1.84% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 9.76% | 13.18% | -3.42% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.96% | 12.96% | -3.00% |
EMB vs. PCY - Expense Ratio Comparison
EMB has a 0.39% expense ratio, which is lower than PCY's 0.50% expense ratio.
Dividends
EMB vs. PCY - Dividend Comparison
EMB's dividend yield for the trailing twelve months is around 5.03%, less than PCY's 6.32% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 5.03% | 4.98% | 5.46% | 4.74% | 5.04% | 3.89% | 3.88% | 4.51% | 5.64% | 4.54% | 4.83% | 4.84% |
PCY Invesco Emerging Markets Sovereign Debt ETF | 6.32% | 5.93% | 6.65% | 6.48% | 6.81% | 4.80% | 4.45% | 4.78% | 4.93% | 4.80% | 5.19% | 5.46% |
Frequently Asked Questions
With a correlation of 0.95, EMB and PCY move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
PCY has higher volatility (2.18%) compared to EMB (1.77%). In terms of maximum drawdown, EMB dropped -34.70% vs PCY's -49.13%.
On 10-year performance, EMB leads with 3.32% vs 2.76% for PCY. On fees, EMB is cheaper at 0.39% per year. On volatility, EMB has been the lower-risk option at 1.77%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, EMB has performed better with a 3.32% return vs 2.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
EMB is cheaper with a 0.39% expense ratio, compared with 0.50% for PCY.
PCY has the higher dividend yield at 6.32%, compared with 5.03% for EMB.
EMB tracks J.P. Morgan EMBI Global Core Index, while PCY tracks DB Emerging Market USD Liquid Balanced Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.39% for EMB and 0.50% for PCY.
EMB currently has the higher Sharpe Ratio (2.00 vs 1.96), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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