FEMDX vs. PCY

Last updated Jun 4, 2026

FEMDX (Franklin Emerging Market Debt Opportunities Fund) and PCY (Invesco Emerging Markets Sovereign Debt ETF) are both Emerging Markets Bonds funds. Over the past 10 years, FEMDX returned 7.15%/yr vs 2.72%/yr for PCY. A 0.51 correlation means they provide meaningful diversification when combined. FEMDX charges 1.00%/yr vs 0.50%/yr for PCY.

Performance

FEMDX vs. PCY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Emerging Market Debt Opportunities Fund (FEMDX) and Invesco Emerging Markets Sovereign Debt ETF (PCY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FEMDX achieves a 7.92% return, which is significantly higher than PCY's 2.20% return. Over the past 10 years, FEMDX has outperformed PCY with an annualized return of 7.15%, while PCY has yielded a comparatively lower 2.72% annualized return.

FEMDX

• 1D: 0.22%
• 1M: 1.97%
• YTD: 7.92%
• 6M: 8.95%
• 1Y: 20.76%
• 3Y*: 16.62%
• 5Y*: 7.89%
• 10Y*: 7.15%

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%

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

FEMDX vs. PCY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FEMDX Franklin Emerging Market Debt Opportunities Fund	7.92%	15.69%	11.83%	15.47%	-8.87%	1.58%	3.93%	9.92%	-1.19%	11.68%
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 FEMDX and PCY is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.57
Correlation (10Y) Calculated over the trailing 10-year period	0.57
Correlation (All Time) Calculated using the full available price history since Oct 12, 2007	0.51

The correlation between FEMDX and PCY shifts across timeframes, from 0.51 (all time) to 0.66 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

FEMDX vs. PCY — Risk / Return Rank

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

FEMDX

FEMDX Risk / Return Rank: 98
FEMDX Sharpe Ratio Rank: 99
FEMDX Sortino Ratio Rank: 99
FEMDX Omega Ratio Rank: 98
FEMDX Calmar Ratio Rank: 95
FEMDX Martin Ratio Rank: 97

PCY

PCY Risk / Return Rank: 59
PCY Sharpe Ratio Rank: 61
PCY Sortino Ratio Rank: 63
PCY Omega Ratio Rank: 62
PCY Calmar Ratio Rank: 52
PCY Martin Ratio Rank: 59

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.

FEMDX vs. PCY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Emerging Market Debt Opportunities Fund (FEMDX) 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.

	FEMDX	PCY	Difference
Sharpe ratio: Return per unit of total volatility	4.92	2.08	+2.84
Sortino ratio: Return per unit of downside risk	8.35	2.97	+5.39
Omega ratio: Gain probability vs. loss probability	2.24	1.38	+0.86
Calmar ratio: Return relative to maximum drawdown	5.98	2.61	+3.37
Martin ratio: Return relative to average drawdown	28.54	10.61	+17.93
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FEMDX vs. PCY - Sharpe Ratio Comparison

The current FEMDX Sharpe Ratio is 4.92, which is higher than the PCY Sharpe Ratio of 2.08. The chart below compares the historical Sharpe Ratios of FEMDX and PCY, 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

	FEMDX	PCY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.92	2.08	+2.84
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.22	0.10	+1.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.21	0.21	+1.00
Sharpe Ratio (All Time) Calculated using the full available price history	1.02	0.30	+0.72

Drawdowns

FEMDX vs. PCY - Drawdown Comparison

The maximum FEMDX drawdown since its inception was -36.14%, smaller than the maximum PCY drawdown of -49.13%. Use the drawdown chart below to compare losses from any high point for FEMDX and PCY.

Drawdown Indicators

	FEMDX	PCY	Difference
Max Drawdown Largest peak-to-trough decline	-36.14%	-49.13%	+12.99%
Max Drawdown (1Y) Largest decline over 1 year	-3.54%	-5.91%	+2.37%
Max Drawdown (3Y) Largest decline over 3 years	-6.17%	-11.52%	+5.35%
Max Drawdown (5Y) Largest decline over 5 years	-19.93%	-37.17%	+17.24%
Max Drawdown (10Y) Largest decline over 10 years	-19.93%	-37.78%	+17.85%
Current Drawdown Current decline from peak	0.00%	-0.31%	+0.31%
Average Drawdown Average peak-to-trough decline	-4.75%	-6.97%	+2.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.74%	1.45%	-0.71%

Volatility

FEMDX vs. PCY - Volatility Comparison

The current volatility for Franklin Emerging Market Debt Opportunities Fund (FEMDX) is 1.21%, while Invesco Emerging Markets Sovereign Debt ETF (PCY) has a volatility of 2.30%. This indicates that FEMDX experiences smaller price fluctuations and is considered to be less risky than PCY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FEMDX	PCY	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.21%	2.30%	-1.09%
Volatility (6M) Calculated over the trailing 6-month period	3.74%	5.81%	-2.07%
Volatility (1Y) Calculated over the trailing 1-year period	4.30%	7.43%	-3.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.48%	13.17%	-6.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.91%	12.94%	-7.03%

FEMDX vs. PCY - Expense Ratio Comparison

FEMDX has a 1.00% expense ratio, which is higher than PCY's 0.50% expense ratio.

Dividends

FEMDX vs. PCY - Dividend Comparison

FEMDX's dividend yield for the trailing twelve months is around 6.01%, more than PCY's 5.85% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FEMDX Franklin Emerging Market Debt Opportunities Fund	6.01%	6.49%	4.65%	3.12%	9.31%	0.00%	0.00%	7.29%	8.06%	4.29%	0.69%	6.04%
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

Can I hold both FEMDX and PCY in my portfolio?

FEMDX and PCY have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FEMDX or PCY?

PCY has higher volatility (2.30%) compared to FEMDX (1.21%). In terms of maximum drawdown, FEMDX dropped -36.14% vs PCY's -49.13%.

Which has better risk-adjusted returns?

FEMDX currently has the higher Sharpe Ratio (4.92 vs 2.08), 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.