EMLC vs. PCY
EMLC (VanEck Vectors J.P. Morgan EM Local Currency Bond ETF) and PCY (Invesco Emerging Markets Sovereign Debt ETF) are both Emerging Markets Bonds funds - EMLC tracks the J.P. Morgan Government Bond Index Emerging Markets Global Core Index while PCY tracks the DB Emerging Market USD Liquid Balanced Index. Both are passively managed. Over the past 10 years, EMLC returned 2.14%/yr vs 2.72%/yr for PCY. A 0.57 correlation means they provide meaningful diversification when combined. EMLC charges 0.30%/yr vs 0.50%/yr for PCY.
Performance
EMLC vs. PCY - Performance Comparison
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Returns By Period
In the year-to-date period, EMLC achieves a 0.92% return, which is significantly lower than PCY's 2.20% return. Over the past 10 years, EMLC has underperformed PCY with an annualized return of 2.14%, while PCY has yielded a comparatively higher 2.72% annualized return.
EMLC
- 1D
- -0.55%
- 1M
- 1.06%
- YTD
- 0.92%
- 6M
- 1.94%
- 1Y
- 9.54%
- 3Y*
- 6.92%
- 5Y*
- 1.17%
- 10Y*
- 2.14%
PCY
- 1D
- -0.28%
- 1M
- 1.69%
- YTD
- 2.20%
- 6M
- 1.58%
- 1Y
- 15.37%
- 3Y*
- 11.35%
- 5Y*
- 1.29%
- 10Y*
- 2.72%
EMLC vs. PCY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
EMLC VanEck Vectors J.P. Morgan EM Local Currency Bond ETF | 0.92% | 18.81% | -2.97% | 11.18% | -10.58% | -9.72% | 3.08% | 9.79% | -7.57% | 13.84% |
PCY Invesco Emerging Markets Sovereign Debt ETF | 2.20% | 16.31% | 2.55% | 18.48% | -24.47% | -4.30% | 2.29% | 17.66% | -6.16% | 9.71% |
Correlation
The correlation between EMLC and PCY is 0.60, 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 | 0.60 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.59 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.61 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.60 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2010 | 0.57 |
The correlation between EMLC and PCY has been stable across timeframes, ranging from 0.57 to 0.61 - a consistent structural relationship.
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Return for Risk
EMLC vs. PCY — Risk / Return Rank
EMLC
PCY
EMLC vs. PCY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for VanEck Vectors J.P. Morgan EM Local Currency Bond ETF (EMLC) 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.
| EMLC | PCY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.69 | ||
| Sortino ratioReturn per unit of downside risk | -1.01 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.38 | -0.11 |
| Calmar ratioReturn relative to maximum drawdown | 1.55 | 2.61 | -1.07 |
| Martin ratioReturn relative to average drawdown | 5.34 | 10.61 | -5.26 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| EMLC | PCY | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.39 | 2.08 | -0.69 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.13 | 0.10 | +0.03 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.21 | 0.21 | 0.00 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.11 | 0.30 | -0.19 |
Drawdowns
EMLC vs. PCY - Drawdown Comparison
The maximum EMLC drawdown since its inception was -32.43%, smaller than the maximum PCY drawdown of -49.13%. Use the drawdown chart below to compare losses from any high point for EMLC and PCY.
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Drawdown Indicators
| EMLC | PCY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -32.43% | -49.13% | +16.70% |
Max Drawdown (1Y)Largest decline over 1 year | -6.19% | -5.91% | -0.28% |
Max Drawdown (3Y)Largest decline over 3 years | -9.15% | -11.52% | +2.37% |
Max Drawdown (5Y)Largest decline over 5 years | -25.26% | -37.17% | +11.91% |
Max Drawdown (10Y)Largest decline over 10 years | -26.47% | -37.78% | +11.31% |
Current DrawdownCurrent decline from peak | -4.28% | -0.31% | -3.97% |
Average DrawdownAverage peak-to-trough decline | -14.37% | -6.97% | -7.40% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.79% | 1.45% | +0.34% |
Volatility
EMLC vs. PCY - Volatility Comparison
VanEck Vectors J.P. Morgan EM Local Currency Bond ETF (EMLC) and Invesco Emerging Markets Sovereign Debt ETF (PCY) have volatilities of 2.21% and 2.30%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| EMLC | PCY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.21% | 2.30% | -0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 5.99% | 5.81% | +0.18% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.90% | 7.43% | -0.53% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 9.13% | 13.17% | -4.04% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.05% | 12.94% | -2.89% |
EMLC vs. PCY - Expense Ratio Comparison
EMLC has a 0.30% expense ratio, which is lower than PCY's 0.50% expense ratio.
Dividends
EMLC vs. PCY - Dividend Comparison
EMLC's dividend yield for the trailing twelve months is around 6.19%, more than PCY's 5.85% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EMLC VanEck Vectors J.P. Morgan EM Local Currency Bond ETF | 6.19% | 5.91% | 6.55% | 5.97% | 5.54% | 5.25% | 4.90% | 6.25% | 6.50% | 5.34% | 5.32% | 6.25% |
PCY Invesco Emerging Markets Sovereign Debt ETF | 5.85% | 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
EMLC and PCY have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PCY has higher volatility (2.30%) compared to EMLC (2.21%). In terms of maximum drawdown, EMLC dropped -32.43% vs PCY's -49.13%.
On 10-year performance, PCY leads with 2.72% vs 2.14% for EMLC. On fees, EMLC is cheaper at 0.30% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, PCY has performed better with a 2.72% return vs 2.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
EMLC is cheaper with a 0.30% expense ratio, compared with 0.50% for PCY.
EMLC has the higher dividend yield at 6.19%, compared with 5.85% for PCY.
EMLC tracks J.P. Morgan Government Bond Index Emerging Markets Global Core Index, while PCY tracks DB Emerging Market USD Liquid Balanced Index. They also come from different issuers: VanEck and Invesco. Their fees differ too: 0.30% for EMLC and 0.50% for PCY.
PCY currently has the higher Sharpe Ratio (2.08 vs 1.39), 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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