EMXC vs. VMBS
EMXC (iShares MSCI Emerging Markets ex China ETF) and VMBS (Vanguard Mortgage-Backed Securities ETF) are both exchange-traded funds - EMXC is a Emerging Markets Equities fund tracking the MSCI Emerging Markets ex China Index, while VMBS is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index. Both are passively managed. Over the past 5 years, EMXC returned 13.27%/yr vs 0.55%/yr for VMBS. At a 0.13 correlation, their price movements are largely independent. EMXC charges 0.49%/yr vs 0.04%/yr for VMBS.
Performance
EMXC vs. VMBS - Performance Comparison
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Returns By Period
In the year-to-date period, EMXC achieves a 40.84% return, which is significantly higher than VMBS's 0.72% return.
EMXC
- 1D
- 0.35%
- 1M
- 9.42%
- YTD
- 40.84%
- 6M
- 48.33%
- 1Y
- 72.64%
- 3Y*
- 27.38%
- 5Y*
- 13.27%
- 10Y*
- —
VMBS
- 1D
- -0.51%
- 1M
- 0.98%
- YTD
- 0.72%
- 6M
- 0.96%
- 1Y
- 6.16%
- 3Y*
- 4.48%
- 5Y*
- 0.55%
- 10Y*
- 1.36%
EMXC vs. VMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
EMXC iShares MSCI Emerging Markets ex China ETF | 40.84% | 35.14% | 2.68% | 18.96% | -19.56% | 8.54% | 12.76% | 15.80% | -12.96% | 7.16% |
VMBS Vanguard Mortgage-Backed Securities ETF | 0.72% | 8.36% | 1.70% | 5.34% | -11.90% | -1.28% | 3.76% | 6.19% | 0.91% | 0.79% |
Correlation
The correlation between EMXC and VMBS is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.35 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.26 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.21 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2017 | 0.13 |
Over the past year, EMXC and VMBS have become more correlated (0.35) than their long-term average of 0.13, meaning their price movements have been converging.
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Return for Risk
EMXC vs. VMBS — Risk / Return Rank
EMXC
VMBS
EMXC vs. VMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ex China ETF (EMXC) and Vanguard Mortgage-Backed Securities ETF (VMBS). 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.
| EMXC | VMBS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.59 | ||
| Sortino ratioReturn per unit of downside risk | +1.50 | ||
| Omega ratioGain probability vs. loss probability | 1.55 | 1.26 | +0.29 |
| Calmar ratioReturn relative to maximum drawdown | 5.07 | 2.30 | +2.76 |
| Martin ratioReturn relative to average drawdown | 19.50 | 7.38 | +12.11 |
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Drawdowns
EMXC vs. VMBS - Drawdown Comparison
The maximum EMXC drawdown since its inception was -42.81%, which is greater than VMBS's maximum drawdown of -17.47%. Use the drawdown chart below to compare losses from any high point for EMXC and VMBS.
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Drawdown Indicators
| EMXC | VMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -42.81% | -17.47% | -25.34% |
Max Drawdown (1Y)Largest decline over 1 year | -14.41% | -2.68% | -11.73% |
Max Drawdown (3Y)Largest decline over 3 years | -19.12% | -7.65% | -11.47% |
Max Drawdown (5Y)Largest decline over 5 years | -28.91% | -17.12% | -11.79% |
Max Drawdown (10Y)Largest decline over 10 years | — | -17.47% | — |
Current DrawdownCurrent decline from peak | -1.61% | -1.26% | -0.35% |
Average DrawdownAverage peak-to-trough decline | -10.16% | -2.49% | -7.67% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.74% | 0.84% | +2.90% |
Volatility
EMXC vs. VMBS - Volatility Comparison
iShares MSCI Emerging Markets ex China ETF (EMXC) has a higher volatility of 12.74% compared to Vanguard Mortgage-Backed Securities ETF (VMBS) at 1.48%. This indicates that EMXC's price experiences larger fluctuations and is considered to be riskier than VMBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| EMXC | VMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.74% | 1.48% | +11.26% |
Volatility (6M)Calculated over the trailing 6-month period | 22.16% | 3.27% | +18.89% |
Volatility (1Y)Calculated over the trailing 1-year period | 24.15% | 4.30% | +19.85% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.09% | 6.78% | +11.31% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.10% | 5.41% | +14.69% |
EMXC vs. VMBS - Expense Ratio Comparison
EMXC has a 0.49% expense ratio, which is higher than VMBS's 0.04% expense ratio.
Dividends
EMXC vs. VMBS - Dividend Comparison
EMXC's dividend yield for the trailing twelve months is around 1.89%, less than VMBS's 4.18% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EMXC iShares MSCI Emerging Markets ex China ETF | 1.89% | 2.82% | 2.69% | 1.83% | 2.85% | 1.78% | 1.45% | 3.25% | 2.63% | 0.99% | 0.00% | 0.00% |
VMBS Vanguard Mortgage-Backed Securities ETF | 4.18% | 4.20% | 3.94% | 3.31% | 2.35% | 1.02% | 2.01% | 2.77% | 2.72% | 2.16% | 2.10% | 2.12% |
Frequently Asked Questions
EMXC and VMBS have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
EMXC has higher volatility (12.74%) compared to VMBS (1.48%). In terms of maximum drawdown, EMXC dropped -42.81% vs VMBS's -17.47%.
On 5-year performance, EMXC leads with 13.27% vs 0.55% for VMBS. On fees, VMBS is cheaper at 0.04% per year. On volatility, VMBS has been the lower-risk option at 1.48%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, EMXC has performed better with a 13.27% return vs 0.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VMBS is cheaper with a 0.04% expense ratio, compared with 0.49% for EMXC.
VMBS has the higher dividend yield at 4.18%, compared with 1.89% for EMXC.
EMXC is categorized as Emerging Markets Equities, while VMBS is Mortgage Backed Securities. EMXC tracks MSCI Emerging Markets ex China Index, while VMBS tracks Barclays Capital U.S. MBS Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.49% for EMXC and 0.04% for VMBS.
EMXC currently has the higher Sharpe Ratio (3.03 vs 1.44), 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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