HFSI vs. VEMY

Last updated Jun 14, 2026

HFSI (Hartford Strategic Income ETF) and VEMY (Virtus Stone Harbor Emerging Markets High Yield Bond ETF) are both exchange-traded funds - HFSI is a Multisector Bonds fund actively managed by Hartford, while VEMY is a Emerging Markets Bonds fund actively managed by Virtus. Both are actively managed. Over the past 3 years, HFSI returned 8.28%/yr vs 15.16%/yr for VEMY. A 0.59 correlation means they provide meaningful diversification when combined. HFSI charges 0.49%/yr vs 0.58%/yr for VEMY.

Performance

HFSI vs. VEMY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Hartford Strategic Income ETF (HFSI) and Virtus Stone Harbor Emerging Markets High Yield Bond ETF (VEMY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HFSI achieves a 1.42% return, which is significantly lower than VEMY's 6.44% return.

HFSI

• 1D: -0.01%
• 1M: 1.12%
• YTD: 1.42%
• 6M: 1.84%
• 1Y: 7.94%
• 3Y*: 8.28%
• 5Y*: —
• 10Y*: —

VEMY

• 1D: 0.21%
• 1M: 1.85%
• YTD: 6.44%
• 6M: 6.86%
• 1Y: 18.56%
• 3Y*: 15.16%
• 5Y*: —
• 10Y*: —

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

HFSI vs. VEMY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
HFSI Hartford Strategic Income ETF	1.42%	9.56%	7.91%	9.91%	-0.54%
VEMY Virtus Stone Harbor Emerging Markets High Yield Bond ETF	6.44%	15.27%	13.48%	14.45%	-1.43%

Correlation

The correlation between HFSI and VEMY is 0.57, 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	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (All Time) Calculated using the full available price history since Dec 13, 2022	0.59

The correlation between HFSI and VEMY has been stable across timeframes, ranging from 0.57 to 0.59 - a consistent structural relationship.

Return for Risk

HFSI vs. VEMY — Risk / Return Rank

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

HFSI

HFSI Risk / Return Rank: 72
HFSI Sharpe Ratio Rank: 77
HFSI Sortino Ratio Rank: 82
HFSI Omega Ratio Rank: 81
HFSI Calmar Ratio Rank: 57
HFSI Martin Ratio Rank: 63

VEMY

VEMY Risk / Return Rank: 93
VEMY Sharpe Ratio Rank: 93
VEMY Sortino Ratio Rank: 95
VEMY Omega Ratio Rank: 94
VEMY Calmar Ratio Rank: 88
VEMY Martin Ratio Rank: 93

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.

HFSI vs. VEMY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Hartford Strategic Income ETF (HFSI) and Virtus Stone Harbor Emerging Markets High Yield Bond ETF (VEMY). 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.

	HFSI	VEMY	Difference
Sharpe ratio: Return per unit of total volatility	2.15	2.98	-0.83
Sortino ratio: Return per unit of downside risk	3.19	4.59	-1.40
Omega ratio: Gain probability vs. loss probability	1.41	1.61	-0.20
Calmar ratio: Return relative to maximum drawdown	2.49	4.52	-2.03
Martin ratio: Return relative to average drawdown	9.96	21.45	-11.48

HFSI vs. VEMY - Sharpe Ratio Comparison

The current HFSI Sharpe Ratio is 2.15, which is comparable to the VEMY Sharpe Ratio of 2.98. The chart below compares the historical Sharpe Ratios of HFSI and VEMY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

HFSI vs. VEMY - Drawdown Comparison

The maximum HFSI drawdown since its inception was -19.34%, which is greater than VEMY's maximum drawdown of -8.77%. Use the drawdown chart below to compare losses from any high point for HFSI and VEMY.

Drawdown Indicators

	HFSI	VEMY	Difference
Max Drawdown Largest peak-to-trough decline	-19.34%	-8.77%	-10.57%
Max Drawdown (1Y) Largest decline over 1 year	-3.06%	-4.00%	+0.94%
Max Drawdown (3Y) Largest decline over 3 years	-5.11%	-6.57%	+1.46%
Current Drawdown Current decline from peak	-0.16%	0.00%	-0.16%
Average Drawdown Average peak-to-trough decline	-5.69%	-1.30%	-4.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.76%	0.84%	-0.08%

Volatility

HFSI vs. VEMY - Volatility Comparison

The current volatility for Hartford Strategic Income ETF (HFSI) is 1.23%, while Virtus Stone Harbor Emerging Markets High Yield Bond ETF (VEMY) has a volatility of 1.64%. This indicates that HFSI experiences smaller price fluctuations and is considered to be less risky than VEMY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HFSI	VEMY	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.23%	1.64%	-0.41%
Volatility (6M) Calculated over the trailing 6-month period	2.59%	4.71%	-2.12%
Volatility (1Y) Calculated over the trailing 1-year period	3.56%	6.08%	-2.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.96%	7.62%	-2.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.96%	7.62%	-2.66%

HFSI vs. VEMY - Expense Ratio Comparison

HFSI has a 0.49% expense ratio, which is lower than VEMY's 0.58% expense ratio.

Dividends

HFSI vs. VEMY - Dividend Comparison

HFSI's dividend yield for the trailing twelve months is around 5.54%, less than VEMY's 8.33% yield.

Position	TTM	2025	2024	2023	2022	2021
HFSI Hartford Strategic Income ETF	5.54%	5.67%	6.51%	5.77%	4.87%	0.71%
VEMY Virtus Stone Harbor Emerging Markets High Yield Bond ETF	8.33%	8.89%	10.28%	9.55%	0.00%	0.00%

Frequently Asked Questions

Can I hold both HFSI and VEMY in my portfolio?

HFSI and VEMY have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HFSI or VEMY?

VEMY has higher volatility (1.64%) compared to HFSI (1.23%). In terms of maximum drawdown, HFSI dropped -19.34% vs VEMY's -8.77%.

Which ETF is better, HFSI or VEMY?

On 3-year performance, VEMY leads with 15.16% vs 8.28% for HFSI. On fees, HFSI is cheaper at 0.49% per year. On volatility, HFSI has been the lower-risk option at 1.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HFSI or VEMY?

Over the 3-year period, VEMY has performed better with a 15.16% return vs 8.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HFSI or VEMY?

HFSI is cheaper with a 0.49% expense ratio, compared with 0.58% for VEMY.

Which ETF pays a higher dividend yield, HFSI or VEMY?

VEMY has the higher dividend yield at 8.33%, compared with 5.54% for HFSI.

What is the main difference between HFSI and VEMY?

HFSI is categorized as Multisector Bonds, while VEMY is Emerging Markets Bonds. They also come from different issuers: Hartford and Virtus. Their fees differ too: 0.49% for HFSI and 0.58% for VEMY.

Which has better risk-adjusted returns?

VEMY currently has the higher Sharpe Ratio (2.98 vs 2.15), 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.