EMB vs. PCY
Compare and contrast key facts about iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) and Invesco Emerging Markets Sovereign Debt ETF (PCY).
EMB and PCY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. EMB is a passively managed fund by iShares that tracks the performance of the JPMorgan EMBI Global Core Index. It was launched on Dec 17, 2007. PCY is a passively managed fund by Invesco that tracks the performance of the DB Emerging Market USD Liquid Balanced Index. It was launched on Oct 11, 2007. Both EMB and PCY are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: EMB or PCY.
Key characteristics
| EMB | PCY | |
|---|---|---|
| YTD Return | 1.51% | 0.39% |
| 1Y Return | 9.88% | 14.43% |
| 3Y Return (Ann) | -2.88% | -4.08% |
| 5Y Return (Ann) | 0.40% | -0.70% |
| 10Y Return (Ann) | 2.22% | 1.80% |
| Sharpe Ratio | 1.05 | 1.17 |
| Daily Std Dev | 9.02% | 11.95% |
| Max Drawdown | -34.70% | -49.14% |
| Current Drawdown | -11.08% | -14.48% |
Correlation
The correlation between EMB and PCY is 0.79, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
EMB vs. PCY - Performance Comparison
In the year-to-date period, EMB achieves a 1.51% return, which is significantly higher than PCY's 0.39% return. Over the past 10 years, EMB has outperformed PCY with an annualized return of 2.22%, while PCY has yielded a comparatively lower 1.80% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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EMB vs. PCY - Expense Ratio Comparison
EMB has a 0.39% expense ratio, which is lower than PCY's 0.50% expense ratio.
Risk-Adjusted Performance
EMB vs. PCY - Risk-Adjusted Performance 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.
Dividends
EMB vs. PCY - Dividend Comparison
EMB's dividend yield for the trailing twelve months is around 4.83%, less than PCY's 6.72% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 4.83% | 4.74% | 5.04% | 3.89% | 3.88% | 4.51% | 5.64% | 4.54% | 4.83% | 4.84% | 4.56% | 4.75% |
PCY Invesco Emerging Markets Sovereign Debt ETF | 6.72% | 6.48% | 6.81% | 4.80% | 4.45% | 4.78% | 4.93% | 4.80% | 5.19% | 5.46% | 4.58% | 4.69% |
Drawdowns
EMB vs. PCY - Drawdown Comparison
The maximum EMB drawdown since its inception was -34.70%, smaller than the maximum PCY drawdown of -49.14%. Use the drawdown chart below to compare losses from any high point for EMB and PCY. For additional features, visit the drawdowns tool.
Volatility
EMB vs. PCY - Volatility Comparison
The current volatility for iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) is 3.12%, while Invesco Emerging Markets Sovereign Debt ETF (PCY) has a volatility of 4.00%. 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.