EMD5.L vs. PEMD.L

Last updated Jul 16, 2026

EMD5.L (L&G Emerging Markets Government Bond (USD) 0-5 Year Screened UCITS ETF USD (Dist)) and PEMD.L (Invesco Emerging Markets USD Bond UCITS ETF Dist) are both Emerging Markets Bonds funds - EMD5.L tracks the J.P. Morgan ESG EMBI Global Diversified Short-Term Custom Maturity Index while PEMD.L tracks the JPM EMBI Global Diversified TR USD. Both are passively managed. Over the past 5 years, EMD5.L returned 2.39%/yr vs 2.09%/yr for PEMD.L. A 0.75 correlation means they provide meaningful diversification when combined. Both charge a 0.25% expense ratio.

Performance

EMD5.L vs. PEMD.L - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in L&G Emerging Markets Government Bond (USD) 0-5 Year Screened UCITS ETF USD (Dist) (EMD5.L) and Invesco Emerging Markets USD Bond UCITS ETF Dist (PEMD.L). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EMD5.L achieves a -0.96% return, which is significantly lower than PEMD.L's 1.49% return.

EMD5.L

• 1D: 0.11%
• 1M: -0.00%
• 6M: -0.75%
• YTD: -0.96%
• 1Y: 3.64%
• 3Y*: 7.13%
• 5Y*: 2.39%
• 10Y*: —

PEMD.L

• 1D: 0.06%
• 1M: -0.72%
• 6M: 1.73%
• YTD: 1.49%
• 1Y: 9.13%
• 3Y*: 8.52%
• 5Y*: 2.09%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

EMD5.L vs. PEMD.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
EMD5.L L&G Emerging Markets Government Bond (USD) 0-5 Year Screened UCITS ETF USD (Dist)	-0.96%	10.15%	8.41%	7.84%	-10.41%	-0.28%	0.80%
PEMD.L Invesco Emerging Markets USD Bond UCITS ETF Dist	1.49%	12.80%	6.18%	10.57%	-16.55%	-2.57%	1.45%

Correlation

The correlation between EMD5.L and PEMD.L is 0.72, 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	0.72
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (All Time) Calculated using the full available price history since Dec 4, 2020	0.75

The correlation between EMD5.L and PEMD.L has been stable across timeframes, ranging from 0.72 to 0.77 - a consistent structural relationship.

Return for Risk

EMD5.L vs. PEMD.L — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

EMD5.L

EMD5.L Risk / Return Rank: 29
EMD5.L Sharpe Ratio Rank: 30
EMD5.L Sortino Ratio Rank: 26
EMD5.L Omega Ratio Rank: 36
EMD5.L Calmar Ratio Rank: 27
EMD5.L Martin Ratio Rank: 26

PEMD.L

PEMD.L Risk / Return Rank: 56
PEMD.L Sharpe Ratio Rank: 54
PEMD.L Sortino Ratio Rank: 61
PEMD.L Omega Ratio Rank: 59
PEMD.L Calmar Ratio Rank: 49
PEMD.L Martin Ratio Rank: 56

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

EMD5.L vs. PEMD.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for L&G Emerging Markets Government Bond (USD) 0-5 Year Screened UCITS ETF USD (Dist) (EMD5.L) and Invesco Emerging Markets USD Bond UCITS ETF Dist (PEMD.L). 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.

	EMD5.L	PEMD.L	Difference
Sharpe ratio: Return per unit of total volatility	0.91	1.53	-0.61
Sortino ratio: Return per unit of downside risk	1.23	2.34	-1.11
Omega ratio: Gain probability vs. loss probability	1.21	1.29	-0.09
Calmar ratio: Return relative to maximum drawdown	1.10	2.05	-0.95
Martin ratio: Return relative to average drawdown	2.76	8.00	-5.24

EMD5.L vs. PEMD.L - Sharpe Ratio Comparison

The current EMD5.L Sharpe Ratio is 0.91, which is lower than the PEMD.L Sharpe Ratio of 1.53. The chart below compares the historical Sharpe Ratios of EMD5.L and PEMD.L, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

EMD5.L vs. PEMD.L - Drawdown Comparison

The maximum EMD5.L drawdown since its inception was -16.04%, smaller than the maximum PEMD.L drawdown of -26.75%. Use the drawdown chart below to compare losses from any high point for EMD5.L and PEMD.L.

Drawdown Indicators

	EMD5.L	PEMD.L	Difference
Max Drawdown Largest peak-to-trough decline	-16.04%	-26.75%	+10.71%
Max Drawdown (1Y) Largest decline over 1 year	-3.29%	-4.43%	+1.14%
Max Drawdown (3Y) Largest decline over 3 years	-3.29%	-7.96%	+4.67%
Max Drawdown (5Y) Largest decline over 5 years	-16.04%	-26.65%	+10.61%
Current Drawdown Current decline from peak	-1.06%	-0.72%	-0.34%
Average Drawdown Average peak-to-trough decline	-4.32%	-6.40%	+2.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.31%	1.14%	+0.17%

Volatility

EMD5.L vs. PEMD.L - Volatility Comparison

The current volatility for L&G Emerging Markets Government Bond (USD) 0-5 Year Screened UCITS ETF USD (Dist) (EMD5.L) is 0.95%, while Invesco Emerging Markets USD Bond UCITS ETF Dist (PEMD.L) has a volatility of 1.03%. This indicates that EMD5.L experiences smaller price fluctuations and is considered to be less risky than PEMD.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMD5.L	PEMD.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.95%	1.03%	-0.08%
Volatility (6M) Calculated over the trailing 6-month period	3.51%	4.77%	-1.26%
Volatility (1Y) Calculated over the trailing 1-year period	3.97%	5.95%	-1.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.85%	9.33%	-4.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.62%	11.10%	-6.48%

EMD5.L vs. PEMD.L - Expense Ratio Comparison

Both EMD5.L and PEMD.L have an expense ratio of 0.25%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

EMD5.L vs. PEMD.L - Dividend Comparison

EMD5.L's dividend yield for the trailing twelve months is around 2.87%, less than PEMD.L's 5.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
EMD5.L L&G Emerging Markets Government Bond (USD) 0-5 Year Screened UCITS ETF USD (Dist)	2.87%	5.66%	6.09%	4.60%	3.04%	1.25%	0.00%	0.00%	0.00%
PEMD.L Invesco Emerging Markets USD Bond UCITS ETF Dist	5.51%	5.49%	5.83%	5.54%	4.94%	3.93%	3.60%	4.99%	5.36%

Frequently Asked Questions

Can I hold both EMD5.L and PEMD.L in my portfolio?

EMD5.L and PEMD.L have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, EMD5.L or PEMD.L?

Both ETFs have the same 0.25% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, EMD5.L or PEMD.L?

EMD5.L and PEMD.L have the same expense ratio: 0.25% per year.

What is the main difference between EMD5.L and PEMD.L?

EMD5.L tracks J.P. Morgan ESG EMBI Global Diversified Short-Term Custom Maturity Index, while PEMD.L tracks JPM EMBI Global Diversified TR USD. They also come from different issuers: L&G and Invesco.