H4Z1.DE vs. VFEM.DE

Last updated Jun 5, 2026

H4Z1.DE (HSBC Emerging Market Sustainable Equity UCITS ETF USD) and VFEM.DE (Vanguard FTSE Emerging Markets UCITS ETF Distributing) are both Emerging Markets Equities funds - H4Z1.DE tracks the FTSE Emerging ESG Low Carbon Select while VFEM.DE tracks the MSCI EM NR USD. Both are passively managed. Over the past 5 years, H4Z1.DE returned 7.17%/yr vs 6.01%/yr for VFEM.DE. With a 0.95 correlation, they move nearly in lockstep. H4Z1.DE charges 0.18%/yr vs 0.22%/yr for VFEM.DE.

Performance

H4Z1.DE vs. VFEM.DE - Performance Comparison

The chart below illustrates the hypothetical performance of a €10,000 investment in HSBC Emerging Market Sustainable Equity UCITS ETF USD (H4Z1.DE) and Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.DE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, H4Z1.DE achieves a 16.02% return, which is significantly higher than VFEM.DE's 12.66% return.

H4Z1.DE

• 1D: -0.86%
• 1M: 0.82%
• YTD: 16.02%
• 6M: 14.48%
• 1Y: 33.76%
• 3Y*: 17.28%
• 5Y*: 7.17%
• 10Y*: —

VFEM.DE

• 1D: -0.53%
• 1M: 0.42%
• YTD: 12.66%
• 6M: 12.25%
• 1Y: 26.20%
• 3Y*: 15.05%
• 5Y*: 6.01%
• 10Y*: —

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

H4Z1.DE vs. VFEM.DE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
H4Z1.DE HSBC Emerging Market Sustainable Equity UCITS ETF USD	16.02%	14.83%	22.34%	0.83%	-12.35%	8.61%	12.24%
VFEM.DE Vanguard FTSE Emerging Markets UCITS ETF Distributing	12.66%	11.40%	19.82%	3.29%	-11.02%	6.34%	12.47%

Correlation

The correlation between H4Z1.DE and VFEM.DE is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (All Time) Calculated using the full available price history since Sep 23, 2020	0.95

The correlation between H4Z1.DE and VFEM.DE has been stable across timeframes, ranging from 0.93 to 0.95 - a consistent structural relationship.

Return for Risk

H4Z1.DE vs. VFEM.DE — Risk / Return Rank

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

H4Z1.DE

H4Z1.DE Risk / Return Rank: 68
H4Z1.DE Sharpe Ratio Rank: 66
H4Z1.DE Sortino Ratio Rank: 65
H4Z1.DE Omega Ratio Rank: 62
H4Z1.DE Calmar Ratio Rank: 75
H4Z1.DE Martin Ratio Rank: 71

VFEM.DE

VFEM.DE Risk / Return Rank: 57
VFEM.DE Sharpe Ratio Rank: 53
VFEM.DE Sortino Ratio Rank: 54
VFEM.DE Omega Ratio Rank: 52
VFEM.DE Calmar Ratio Rank: 64
VFEM.DE 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.

H4Z1.DE vs. VFEM.DE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for HSBC Emerging Market Sustainable Equity UCITS ETF USD (H4Z1.DE) and Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.DE). 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.

	H4Z1.DE	VFEM.DE	Difference
Sharpe ratio: Return per unit of total volatility	2.15	1.80	+0.35
Sortino ratio: Return per unit of downside risk	2.95	2.57	+0.39
Omega ratio: Gain probability vs. loss probability	1.37	1.32	+0.05
Calmar ratio: Return relative to maximum drawdown	3.73	3.11	+0.61
Martin ratio: Return relative to average drawdown	13.07	10.36	+2.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

H4Z1.DE vs. VFEM.DE - Sharpe Ratio Comparison

The current H4Z1.DE Sharpe Ratio is 2.15, which is comparable to the VFEM.DE Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of H4Z1.DE and VFEM.DE, 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

	H4Z1.DE	VFEM.DE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.15	1.80	+0.35
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.44	0.37	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.64	0.36	+0.27

Drawdowns

H4Z1.DE vs. VFEM.DE - Drawdown Comparison

The maximum H4Z1.DE drawdown since its inception was -22.16%, smaller than the maximum VFEM.DE drawdown of -31.59%. Use the drawdown chart below to compare losses from any high point for H4Z1.DE and VFEM.DE.

Drawdown Indicators

	H4Z1.DE	VFEM.DE	Difference
Max Drawdown Largest peak-to-trough decline	-22.16%	-31.59%	+9.43%
Max Drawdown (1Y) Largest decline over 1 year	-9.18%	-8.49%	-0.69%
Max Drawdown (3Y) Largest decline over 3 years	-19.53%	-18.56%	-0.97%
Max Drawdown (5Y) Largest decline over 5 years	-20.44%	-20.11%	-0.33%
Current Drawdown Current decline from peak	-2.40%	-1.73%	-0.67%
Average Drawdown Average peak-to-trough decline	-8.60%	-8.24%	-0.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.62%	2.55%	+0.07%

Volatility

H4Z1.DE vs. VFEM.DE - Volatility Comparison

HSBC Emerging Market Sustainable Equity UCITS ETF USD (H4Z1.DE) and Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.DE) have volatilities of 5.70% and 5.44%, 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.

Volatility by Period

	H4Z1.DE	VFEM.DE	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.70%	5.44%	+0.26%
Volatility (6M) Calculated over the trailing 6-month period	12.47%	11.70%	+0.77%
Volatility (1Y) Calculated over the trailing 1-year period	15.94%	14.69%	+1.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.24%	15.93%	+0.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.17%	18.20%	-2.03%

H4Z1.DE vs. VFEM.DE - Expense Ratio Comparison

H4Z1.DE has a 0.18% expense ratio, which is lower than VFEM.DE's 0.22% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

H4Z1.DE vs. VFEM.DE - Dividend Comparison

H4Z1.DE has not paid dividends to shareholders, while VFEM.DE's dividend yield for the trailing twelve months is around 2.04%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
H4Z1.DE HSBC Emerging Market Sustainable Equity UCITS ETF USD	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VFEM.DE Vanguard FTSE Emerging Markets UCITS ETF Distributing	2.04%	2.39%	2.28%	2.66%	3.38%	2.26%	1.93%	2.32%	2.79%	0.20%

Frequently Asked Questions

Can I hold both H4Z1.DE and VFEM.DE in my portfolio?

With a correlation of 0.93, H4Z1.DE and VFEM.DE move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which ETF is better, H4Z1.DE or VFEM.DE?

On fees, H4Z1.DE is cheaper at 0.18% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, H4Z1.DE or VFEM.DE?

H4Z1.DE is cheaper with a 0.18% expense ratio, compared with 0.22% for VFEM.DE.

What is the main difference between H4Z1.DE and VFEM.DE?

H4Z1.DE tracks FTSE Emerging ESG Low Carbon Select, while VFEM.DE tracks MSCI EM NR USD. They also come from different issuers: HSBC and Vanguard. Their fees differ too: 0.18% for H4Z1.DE and 0.22% for VFEM.DE.