FEMB vs. PCY
FEMB (First Trust Emerging Markets Local Currency Bond ETF) and PCY (Invesco Emerging Markets Sovereign Debt ETF) are both Emerging Markets Bonds funds. FEMB is actively managed, while PCY is passively managed. Over the past 10 years, FEMB returned 1.90%/yr vs 2.76%/yr for PCY. At a 0.43 correlation, their price movements are largely independent. FEMB charges 0.85%/yr vs 0.50%/yr for PCY.
Performance
FEMB vs. PCY - Performance Comparison
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Returns By Period
In the year-to-date period, FEMB achieves a 1.12% return, which is significantly lower than PCY's 2.88% return. Over the past 10 years, FEMB has underperformed PCY with an annualized return of 1.90%, while PCY has yielded a comparatively higher 2.76% annualized return.
FEMB
- 1D
- -0.53%
- 1M
- 1.08%
- YTD
- 1.12%
- 6M
- 1.60%
- 1Y
- 9.82%
- 3Y*
- 6.95%
- 5Y*
- 2.30%
- 10Y*
- 1.90%
PCY
- 1D
- -0.49%
- 1M
- 2.56%
- YTD
- 2.88%
- 6M
- 2.98%
- 1Y
- 14.69%
- 3Y*
- 10.82%
- 5Y*
- 1.46%
- 10Y*
- 2.76%
FEMB vs. PCY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FEMB First Trust Emerging Markets Local Currency Bond ETF | 1.12% | 21.77% | -5.61% | 17.12% | -10.50% | -13.40% | 3.16% | 11.52% | -7.19% | 11.92% |
PCY Invesco Emerging Markets Sovereign Debt ETF | 2.88% | 16.31% | 2.55% | 18.48% | -24.47% | -4.30% | 2.29% | 17.66% | -6.16% | 9.71% |
Correlation
The correlation between FEMB and PCY is 0.53, 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 | 0.53 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.53 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.55 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since Nov 5, 2014 | 0.43 |
The correlation between FEMB and PCY shifts across timeframes, from 0.43 (all time) to 0.55 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
FEMB vs. PCY — Risk / Return Rank
FEMB
PCY
FEMB vs. PCY - 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 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.
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 | PCY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.82 | ||
| Sortino ratioReturn per unit of downside risk | -1.14 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.36 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | 1.30 | 2.50 | -1.20 |
| Martin ratioReturn relative to average drawdown | 3.97 | 10.12 | -6.15 |
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Drawdowns
FEMB vs. PCY - Drawdown Comparison
The maximum FEMB drawdown since its inception was -30.44%, smaller than the maximum PCY drawdown of -49.13%. Use the drawdown chart below to compare losses from any high point for FEMB and PCY.
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Drawdown Indicators
| FEMB | PCY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -30.44% | -49.13% | +18.69% |
Max Drawdown (1Y)Largest decline over 1 year | -7.58% | -5.91% | -1.67% |
Max Drawdown (3Y)Largest decline over 3 years | -10.13% | -11.52% | +1.39% |
Max Drawdown (5Y)Largest decline over 5 years | -25.93% | -37.17% | +11.24% |
Max Drawdown (10Y)Largest decline over 10 years | -30.44% | -37.78% | +7.34% |
Current DrawdownCurrent decline from peak | -3.41% | -0.49% | -2.92% |
Average DrawdownAverage peak-to-trough decline | -9.90% | -6.96% | -2.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.48% | 1.46% | +1.02% |
Volatility
FEMB vs. PCY - Volatility Comparison
First Trust Emerging Markets Local Currency Bond ETF (FEMB) has a higher volatility of 2.80% compared to Invesco Emerging Markets Sovereign Debt ETF (PCY) at 2.18%. This indicates that FEMB's price experiences larger fluctuations and is considered to be riskier than PCY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FEMB | PCY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.80% | 2.18% | +0.62% |
Volatility (6M)Calculated over the trailing 6-month period | 6.87% | 5.99% | +0.88% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.61% | 7.53% | +1.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.27% | 13.18% | -2.91% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.86% | 12.96% | -2.10% |
FEMB vs. PCY - Expense Ratio Comparison
FEMB has a 0.85% expense ratio, which is higher than PCY's 0.50% expense ratio.
Dividends
FEMB vs. PCY - Dividend Comparison
FEMB's dividend yield for the trailing twelve months is around 6.03%, less than PCY's 6.32% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FEMB First Trust Emerging Markets Local Currency Bond ETF | 6.03% | 5.67% | 6.09% | 5.15% | 6.35% | 6.12% | 5.29% | 5.40% | 5.86% | 6.38% | 5.83% | 4.89% |
PCY Invesco Emerging Markets Sovereign Debt ETF | 6.32% | 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
FEMB and PCY have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FEMB has higher volatility (2.80%) compared to PCY (2.18%). In terms of maximum drawdown, FEMB dropped -30.44% vs PCY's -49.13%.
On 10-year performance, PCY leads with 2.76% vs 1.90% for FEMB. On fees, PCY is cheaper at 0.50% per year. On volatility, PCY has been the lower-risk option at 2.18%. 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 2.76% return vs 1.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
PCY is cheaper with a 0.50% expense ratio, compared with 0.85% for FEMB.
PCY has the higher dividend yield at 6.32%, compared with 6.03% for FEMB.
They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.85% for FEMB and 0.50% for PCY.
PCY currently has the higher Sharpe Ratio (1.96 vs 1.15), 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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