EMB vs. VWO
EMB (iShares J.P. Morgan USD Emerging Markets Bond ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - EMB is a Emerging Markets Bonds fund tracking the JPMorgan EMBI Global Core Index, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, EMB returned 3.39%/yr vs 9.00%/yr for VWO. At a 0.42 correlation, their price movements are largely independent. EMB charges 0.39%/yr vs 0.08%/yr for VWO.
Performance
EMB vs. VWO - Performance Comparison
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Returns By Period
In the year-to-date period, EMB achieves a 2.29% return, which is significantly lower than VWO's 10.77% return. Over the past 10 years, EMB has underperformed VWO with an annualized return of 3.39%, while VWO has yielded a comparatively higher 9.00% annualized return.
EMB
- 1D
- 0.09%
- 1M
- 1.29%
- YTD
- 2.29%
- 6M
- 2.72%
- 1Y
- 11.53%
- 3Y*
- 9.63%
- 5Y*
- 1.79%
- 10Y*
- 3.39%
VWO
- 1D
- 0.76%
- 1M
- -0.68%
- YTD
- 10.77%
- 6M
- 12.57%
- 1Y
- 26.52%
- 3Y*
- 16.61%
- 5Y*
- 5.03%
- 10Y*
- 9.00%
EMB vs. VWO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 2.29% | 13.85% | 5.54% | 10.62% | -18.63% | -2.23% | 5.42% | 15.48% | -5.47% | 10.28% |
VWO Vanguard FTSE Emerging Markets ETF | 10.77% | 25.60% | 10.59% | 9.25% | -17.98% | 1.26% | 15.17% | 20.75% | -14.76% | 31.49% |
Correlation
The correlation between EMB and VWO is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.57 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.49 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.47 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.49 |
Correlation (All Time) Calculated using the full available price history since Dec 19, 2007 | 0.42 |
The correlation between EMB and VWO shifts across timeframes, from 0.42 (all time) to 0.57 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
EMB vs. VWO — Risk / Return Rank
EMB
VWO
EMB vs. VWO - 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 Vanguard FTSE Emerging Markets ETF (VWO). 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 | VWO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.42 | ||
| Sortino ratioReturn per unit of downside risk | +0.71 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.28 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 2.41 | 2.21 | +0.20 |
| Martin ratioReturn relative to average drawdown | 10.28 | 7.80 | +2.48 |
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Drawdowns
EMB vs. VWO - Drawdown Comparison
The maximum EMB drawdown since its inception was -34.70%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for EMB and VWO.
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Drawdown Indicators
| EMB | VWO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.70% | -67.68% | +32.98% |
Max Drawdown (1Y)Largest decline over 1 year | -4.51% | -11.17% | +6.66% |
Max Drawdown (3Y)Largest decline over 3 years | -7.95% | -17.37% | +9.42% |
Max Drawdown (5Y)Largest decline over 5 years | -28.74% | -32.60% | +3.86% |
Max Drawdown (10Y)Largest decline over 10 years | -28.74% | -36.39% | +7.65% |
Current DrawdownCurrent decline from peak | 0.00% | -2.68% | +2.68% |
Average DrawdownAverage peak-to-trough decline | -5.05% | -15.80% | +10.75% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.06% | 3.17% | -2.11% |
Volatility
EMB vs. VWO - Volatility Comparison
The current volatility for iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) is 2.02%, while Vanguard FTSE Emerging Markets ETF (VWO) has a volatility of 6.64%. This indicates that EMB experiences smaller price fluctuations and is considered to be less risky than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| EMB | VWO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.02% | 6.64% | -4.62% |
Volatility (6M)Calculated over the trailing 6-month period | 4.66% | 14.04% | -9.38% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.67% | 16.54% | -10.87% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 9.76% | 17.48% | -7.72% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.96% | 19.22% | -9.26% |
EMB vs. VWO - Expense Ratio Comparison
EMB has a 0.39% expense ratio, which is higher than VWO's 0.08% expense ratio.
Dividends
EMB vs. VWO - Dividend Comparison
EMB's dividend yield for the trailing twelve months is around 5.03%, more than VWO's 2.44% 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% |
VWO Vanguard FTSE Emerging Markets ETF | 2.44% | 2.79% | 3.20% | 3.52% | 4.11% | 2.63% | 1.91% | 3.23% | 2.88% | 2.30% | 2.52% | 3.26% |
Frequently Asked Questions
EMB and VWO have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VWO has higher volatility (6.64%) compared to EMB (2.02%). In terms of maximum drawdown, EMB dropped -34.70% vs VWO's -67.68%.
On 10-year performance, VWO leads with 9.00% vs 3.39% for EMB. On fees, VWO is cheaper at 0.08% per year. On volatility, EMB has been the lower-risk option at 2.02%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VWO has performed better with a 9.00% return vs 3.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VWO is cheaper with a 0.08% expense ratio, compared with 0.39% for EMB.
EMB has the higher dividend yield at 5.03%, compared with 2.44% for VWO.
EMB is categorized as Emerging Markets Bonds, while VWO is Emerging Markets Equities. EMB tracks JPMorgan EMBI Global Core Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.39% for EMB and 0.08% for VWO.
EMB currently has the higher Sharpe Ratio (1.92 vs 1.49), 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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