EMGU.L vs. VFEM.L

Last updated Jun 5, 2026

EMGU.L (iShares Core MSCI Emerging Markets IMI UCITS ETF) and VFEM.L (Vanguard FTSE Emerging Markets UCITS ETF Distributing) are both Emerging Markets Equities funds tracking the MSCI EM NR USD, from iShares and Vanguard respectively. Both are passively managed. Over the past 5 years, EMGU.L returned 8.74%/yr vs 8.88%/yr for VFEM.L. With a 0.95 correlation, they move nearly in lockstep. EMGU.L charges 0.18%/yr vs 0.22%/yr for VFEM.L.

Performance

EMGU.L vs. VFEM.L - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in iShares Core MSCI Emerging Markets IMI UCITS ETF (EMGU.L) and Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.L). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EMGU.L achieves a 24.44% return, which is significantly higher than VFEM.L's 11.78% return.

EMGU.L

• 1D: -1.41%
• 1M: 5.55%
• YTD: 24.44%
• 6M: 26.29%
• 1Y: 50.77%
• 3Y*: 20.11%
• 5Y*: 8.74%
• 10Y*: —

VFEM.L

• 1D: -0.13%
• 1M: 2.65%
• YTD: 11.78%
• 6M: 12.41%
• 1Y: 30.99%
• 3Y*: 16.84%
• 5Y*: 8.88%
• 10Y*: 11.67%

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

EMGU.L vs. VFEM.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
EMGU.L iShares Core MSCI Emerging Markets IMI UCITS ETF	24.44%	22.98%	9.19%	4.92%	-10.05%	0.64%	14.80%	3.98%
VFEM.L Vanguard FTSE Emerging Markets UCITS ETF Distributing	11.78%	16.90%	15.28%	5.45%	-3.23%	3.99%	15.04%	4.14%

Correlation

The correlation between EMGU.L and VFEM.L is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (All Time) Calculated using the full available price history since Nov 25, 2019	0.95

The correlation between EMGU.L and VFEM.L has been stable across timeframes, ranging from 0.93 to 0.95 - a consistent structural relationship.

EMGU.L vs. VFEM.L - Sectors Allocation Comparison

Sectors	EMGU.L	VFEM.L
Technology	39.4%	29.6%
Financial Services	17.3%	20.8%
Consumer Cyclical	9.1%	10.8%
Industrials	8.4%	7.1%
Basic Materials	6.4%	7.8%
Communication Services	5.9%	7.5%
Energy	3.5%	4.9%
Healthcare	3.5%	3.4%
Consumer Defensive	3.1%	3.6%
Utilities	2.0%	3.0%
Real Estate	1.6%	1.7%

Return for Risk

EMGU.L vs. VFEM.L — Risk / Return Rank

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

EMGU.L

EMGU.L Risk / Return Rank: 88
EMGU.L Sharpe Ratio Rank: 91
EMGU.L Sortino Ratio Rank: 89
EMGU.L Omega Ratio Rank: 91
EMGU.L Calmar Ratio Rank: 85
EMGU.L Martin Ratio Rank: 83

VFEM.L

VFEM.L Risk / Return Rank: 68
VFEM.L Sharpe Ratio Rank: 69
VFEM.L Sortino Ratio Rank: 66
VFEM.L Omega Ratio Rank: 68
VFEM.L Calmar Ratio Rank: 70
VFEM.L Martin Ratio Rank: 64

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.

EMGU.L vs. VFEM.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI Emerging Markets IMI UCITS ETF (EMGU.L) and Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.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.

	EMGU.L	VFEM.L	Difference
Sharpe ratio: Return per unit of total volatility	3.10	2.23	+0.87
Sortino ratio: Return per unit of downside risk	3.99	3.00	+0.98
Omega ratio: Gain probability vs. loss probability	1.58	1.40	+0.18
Calmar ratio: Return relative to maximum drawdown	4.65	3.46	+1.20
Martin ratio: Return relative to average drawdown	16.46	11.41	+5.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EMGU.L vs. VFEM.L - Sharpe Ratio Comparison

The current EMGU.L Sharpe Ratio is 3.10, which is higher than the VFEM.L Sharpe Ratio of 2.23. The chart below compares the historical Sharpe Ratios of EMGU.L and VFEM.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.

Sharpe Ratios by Period

	EMGU.L	VFEM.L	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.10	2.23	+0.87
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.56	0.57	-0.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.67	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.59	0.54	+0.04

Drawdowns

EMGU.L vs. VFEM.L - Drawdown Comparison

The maximum EMGU.L drawdown since its inception was -25.97%, smaller than the maximum VFEM.L drawdown of -31.32%. Use the drawdown chart below to compare losses from any high point for EMGU.L and VFEM.L.

Drawdown Indicators

	EMGU.L	VFEM.L	Difference
Max Drawdown Largest peak-to-trough decline	-25.97%	-31.32%	+5.35%
Max Drawdown (1Y) Largest decline over 1 year	-10.86%	-8.92%	-1.94%
Max Drawdown (3Y) Largest decline over 3 years	-15.41%	-14.68%	-0.73%
Max Drawdown (5Y) Largest decline over 5 years	-22.05%	-15.28%	-6.77%
Max Drawdown (10Y) Largest decline over 10 years	—	-25.91%	—
Current Drawdown Current decline from peak	-2.34%	-1.46%	-0.88%
Average Drawdown Average peak-to-trough decline	-9.03%	-6.87%	-2.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.08%	2.71%	+0.37%

Volatility

EMGU.L vs. VFEM.L - Volatility Comparison

iShares Core MSCI Emerging Markets IMI UCITS ETF (EMGU.L) has a higher volatility of 7.12% compared to Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.L) at 5.23%. This indicates that EMGU.L's price experiences larger fluctuations and is considered to be riskier than VFEM.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMGU.L	VFEM.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.12%	5.23%	+1.89%
Volatility (6M) Calculated over the trailing 6-month period	13.90%	11.12%	+2.78%
Volatility (1Y) Calculated over the trailing 1-year period	16.30%	13.85%	+2.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.60%	15.47%	+0.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.58%	17.50%	+0.08%

EMGU.L vs. VFEM.L - Expense Ratio Comparison

EMGU.L has a 0.18% expense ratio, which is lower than VFEM.L's 0.22% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

EMGU.L vs. VFEM.L - Dividend Comparison

EMGU.L's dividend yield for the trailing twelve months is around 1.61%, less than VFEM.L's 2.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EMGU.L iShares Core MSCI Emerging Markets IMI UCITS ETF	1.61%	1.93%	2.26%	2.51%	3.16%	1.86%	1.81%	0.00%	0.00%	0.00%	0.00%	0.00%
VFEM.L Vanguard FTSE Emerging Markets UCITS ETF Distributing	2.04%	2.36%	2.93%	6.58%	7.88%	6.20%	4.92%	3.39%	3.61%	2.98%	2.96%	4.36%

Frequently Asked Questions

Can I hold both EMGU.L and VFEM.L in my portfolio?

With a correlation of 0.93, EMGU.L and VFEM.L 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.

Which ETF is better, EMGU.L or VFEM.L?

On fees, EMGU.L is cheaper at 0.18% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, EMGU.L or VFEM.L?

EMGU.L is cheaper with a 0.18% expense ratio, compared with 0.22% for VFEM.L.

What is the main difference between EMGU.L and VFEM.L?

Both ETFs track MSCI EM NR USD. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.18% for EMGU.L and 0.22% for VFEM.L.