FEMB vs. IBND
FEMB (First Trust Emerging Markets Local Currency Bond ETF) and IBND (SPDR Bloomberg Barclays International Corporate Bond ETF) are both exchange-traded funds - FEMB is a Emerging Markets Bonds fund actively managed by First Trust, while IBND is a Corporate Bonds fund tracking the Bloomberg Global Aggregate x USD >$1B: Corporate Bond. FEMB is actively managed, while IBND is passively managed. Over the past 10 years, FEMB returned 1.80%/yr vs 0.56%/yr for IBND. At a 0.43 correlation, their price movements are largely independent. FEMB charges 0.85%/yr vs 0.50%/yr for IBND.
Performance
FEMB vs. IBND - Performance Comparison
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Returns By Period
In the year-to-date period, FEMB achieves a 1.97% return, which is significantly higher than IBND's -2.74% return. Over the past 10 years, FEMB has outperformed IBND with an annualized return of 1.80%, while IBND has yielded a comparatively lower 0.56% annualized return.
FEMB
- 1D
- -0.41%
- 1M
- 0.33%
- 6M
- 1.32%
- YTD
- 1.97%
- 1Y
- 8.44%
- 3Y*
- 6.10%
- 5Y*
- 2.76%
- 10Y*
- 1.80%
IBND
- 1D
- -0.68%
- 1M
- -1.81%
- 6M
- -2.62%
- YTD
- -2.74%
- 1Y
- -1.37%
- 3Y*
- 4.39%
- 5Y*
- -1.48%
- 10Y*
- 0.56%
FEMB vs. IBND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FEMB First Trust Emerging Markets Local Currency Bond ETF | 1.97% | 21.77% | -5.61% | 17.12% | -10.50% | -13.40% | 3.16% | 11.52% | -7.19% | 11.92% |
IBND SPDR Bloomberg Barclays International Corporate Bond ETF | -2.74% | 16.17% | -2.81% | 10.38% | -19.44% | -8.40% | 11.50% | 4.41% | -6.15% | 14.84% |
Correlation
The correlation between FEMB and IBND is 0.68, 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 | 0.68 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.62 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.64 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.49 |
Correlation (All Time) Calculated using the full available price history since Nov 5, 2014 | 0.43 |
Over the past year, FEMB and IBND have become more correlated (0.68) than their long-term average of 0.43, meaning their price movements have been converging.
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Return for Risk
FEMB vs. IBND — Risk / Return Rank
FEMB
IBND
FEMB vs. IBND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Emerging Markets Local Currency Bond ETF (FEMB) and SPDR Bloomberg Barclays International Corporate Bond ETF (IBND). 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.
| FEMB | IBND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.21 | ||
| Sortino ratioReturn per unit of downside risk | +1.73 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 0.98 | +0.21 |
| Calmar ratioReturn relative to maximum drawdown | 1.12 | -0.20 | +1.32 |
| Martin ratioReturn relative to average drawdown | 3.33 | -0.48 | +3.82 |
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Drawdowns
FEMB vs. IBND - Drawdown Comparison
The maximum FEMB drawdown since its inception was -30.44%, smaller than the maximum IBND drawdown of -35.62%. Use the drawdown chart below to compare losses from any high point for FEMB and IBND.
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Drawdown Indicators
| FEMB | IBND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -30.44% | -35.62% | +5.18% |
Max Drawdown (1Y)Largest decline over 1 year | -7.58% | -6.75% | -0.83% |
Max Drawdown (3Y)Largest decline over 3 years | -10.13% | -9.18% | -0.95% |
Max Drawdown (5Y)Largest decline over 5 years | -25.27% | -33.49% | +8.22% |
Max Drawdown (10Y)Largest decline over 10 years | -30.44% | -35.62% | +5.18% |
Current DrawdownCurrent decline from peak | -2.61% | -10.97% | +8.36% |
Average DrawdownAverage peak-to-trough decline | -9.87% | -10.63% | +0.76% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.54% | 2.84% | -0.30% |
Volatility
FEMB vs. IBND - Volatility Comparison
First Trust Emerging Markets Local Currency Bond ETF (FEMB) has a higher volatility of 2.31% compared to SPDR Bloomberg Barclays International Corporate Bond ETF (IBND) at 2.12%. This indicates that FEMB's price experiences larger fluctuations and is considered to be riskier than IBND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FEMB | IBND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.31% | 2.12% | +0.19% |
Volatility (6M)Calculated over the trailing 6-month period | 6.93% | 6.37% | +0.56% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.22% | 8.01% | +0.21% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.25% | 9.76% | +0.49% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.71% | 8.92% | +1.79% |
FEMB vs. IBND - Expense Ratio Comparison
FEMB has a 0.85% expense ratio, which is higher than IBND's 0.50% expense ratio.
Dividends
FEMB vs. IBND - Dividend Comparison
FEMB's dividend yield for the trailing twelve months is around 6.09%, more than IBND's 2.81% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FEMB First Trust Emerging Markets Local Currency Bond ETF | 6.09% | 5.67% | 6.09% | 5.15% | 6.35% | 6.12% | 5.29% | 5.40% | 5.86% | 6.38% | 5.83% | 4.89% |
IBND SPDR Bloomberg Barclays International Corporate Bond ETF | 2.81% | 2.49% | 2.61% | 2.08% | 0.54% | 0.38% | 0.45% | 0.67% | 0.71% | 0.34% | 0.01% | 0.01% |
Frequently Asked Questions
FEMB and IBND have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FEMB has higher volatility (2.31%) compared to IBND (2.12%). In terms of maximum drawdown, FEMB dropped -30.44% vs IBND's -35.62%.
On 10-year performance, FEMB leads with 1.80% vs 0.56% for IBND. On fees, IBND is cheaper at 0.50% per year. On volatility, IBND has been the lower-risk option at 2.12%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FEMB has performed better with a 1.80% return vs 0.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IBND is cheaper with a 0.50% expense ratio, compared with 0.85% for FEMB.
FEMB has the higher dividend yield at 6.09%, compared with 2.81% for IBND.
FEMB is categorized as Emerging Markets Bonds, while IBND is Corporate Bonds. They also come from different issuers: First Trust and State Street. Their fees differ too: 0.85% for FEMB and 0.50% for IBND.
FEMB currently has the higher Sharpe Ratio (1.03 vs -0.17), 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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