HMEF.L vs. VDEM.L

Last updated Jul 16, 2026

HMEF.L (HSBC MSCI Emerging Markets UCITS ETF USD) and VDEM.L (Vanguard FTSE Emerging Markets UCITS) are both Emerging Markets Equities funds - HMEF.L tracks the MSCI EM NR USD while VDEM.L tracks the FTSE Emerging Index. Both are passively managed. Over the past 10 years, HMEF.L returned 44.84%/yr vs 7.71%/yr for VDEM.L. Their correlation of 0.93 suggests significant overlap in exposure. HMEF.L charges 0.15%/yr vs 0.22%/yr for VDEM.L.

Performance

HMEF.L vs. VDEM.L - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in HSBC MSCI Emerging Markets UCITS ETF USD (HMEF.L) and Vanguard FTSE Emerging Markets UCITS (VDEM.L). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

HMEF.L is traded in GBp, while VDEM.L is traded in USD. To make them comparable, the VDEM.L values have been converted to GBp using the latest available exchange rates.

Returns By Period

In the year-to-date period, HMEF.L achieves a 20.01% return, which is significantly higher than VDEM.L's 9.65% return. Over the past 10 years, HMEF.L has outperformed VDEM.L with an annualized return of 44.84%, while VDEM.L has yielded a comparatively lower 7.71% annualized return.

HMEF.L

• 1D: -1.19%
• 1M: -6.61%
• 6M: 13.86%
• YTD: 20.01%
• 1Y: 37.04%
• 3Y*: 18.83%
• 5Y*: 7.35%
• 10Y*: 44.84%

VDEM.L

• 1D: -0.48%
• 1M: -3.04%
• 6M: 5.48%
• YTD: 9.65%
• 1Y: 20.96%
• 3Y*: 14.69%
• 5Y*: 5.83%
• 10Y*: 7.71%

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

HMEF.L vs. VDEM.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HMEF.L HSBC MSCI Emerging Markets UCITS ETF USD	20.01%	24.56%	9.08%	2.44%	-10.01%	-2.27%	14.81%	12.75%	-9.63%	101.42%
VDEM.L Vanguard FTSE Emerging Markets UCITS	9.65%	16.95%	14.24%	1.91%	-7.35%	0.05%	11.48%	14.31%	-7.36%	20.21%

Correlation

The correlation between HMEF.L and VDEM.L is 0.88, 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	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since May 22, 2012	0.93

The correlation between HMEF.L and VDEM.L has been stable across timeframes, ranging from 0.88 to 0.93 - a consistent structural relationship.

HMEF.L vs. VDEM.L - Sectors Allocation Comparison

Sectors	HMEF.L	VDEM.L
Technology	45.2%	33.4%
Financial Services	18.4%	19.9%
Consumer Cyclical	7.5%	9.9%
Industrials	6.3%	6.8%
Communication Services	6.0%	7.0%
Basic Materials	5.5%	7.5%
Energy	3.2%	4.4%
Healthcare	2.6%	3.2%
Consumer Defensive	2.6%	3.4%
Utilities	1.9%	2.9%
Real Estate	1.0%	1.6%

Return for Risk

HMEF.L vs. VDEM.L — Risk / Return Rank

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

HMEF.L

HMEF.L Risk / Return Rank: 73
HMEF.L Sharpe Ratio Rank: 73
HMEF.L Sortino Ratio Rank: 67
HMEF.L Omega Ratio Rank: 74
HMEF.L Calmar Ratio Rank: 79
HMEF.L Martin Ratio Rank: 69

VDEM.L

VDEM.L Risk / Return Rank: 47
VDEM.L Sharpe Ratio Rank: 45
VDEM.L Sortino Ratio Rank: 45
VDEM.L Omega Ratio Rank: 44
VDEM.L Calmar Ratio Rank: 50
VDEM.L Martin Ratio Rank: 49

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.

HMEF.L vs. VDEM.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for HSBC MSCI Emerging Markets UCITS ETF USD (HMEF.L) and Vanguard FTSE Emerging Markets UCITS (VDEM.L). 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.

	HMEF.L	VDEM.L	Difference
Sharpe ratio: Return per unit of total volatility	1.88	1.30	+0.58
Sortino ratio: Return per unit of downside risk	2.48	1.90	+0.58
Omega ratio: Gain probability vs. loss probability	1.35	1.24	+0.11
Calmar ratio: Return relative to maximum drawdown	3.33	2.32	+1.01
Martin ratio: Return relative to average drawdown	10.05	6.80	+3.26

HMEF.L vs. VDEM.L - Sharpe Ratio Comparison

The current HMEF.L Sharpe Ratio is 1.88, which is higher than the VDEM.L Sharpe Ratio of 1.30. The chart below compares the historical Sharpe Ratios of HMEF.L and VDEM.L, 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

HMEF.L vs. VDEM.L - Drawdown Comparison

The maximum HMEF.L drawdown since its inception was -27.33%, smaller than the maximum VDEM.L drawdown of -32.15%. Use the drawdown chart below to compare losses from any high point for HMEF.L and VDEM.L.

Drawdown Indicators

	HMEF.L	VDEM.L	Difference
Max Drawdown Largest peak-to-trough decline	-27.33%	-32.15%	+4.82%
Max Drawdown (1Y) Largest decline over 1 year	-11.07%	-8.99%	-2.08%
Max Drawdown (3Y) Largest decline over 3 years	-15.16%	-14.89%	-0.27%
Max Drawdown (5Y) Largest decline over 5 years	-22.06%	-19.51%	-2.55%
Max Drawdown (10Y) Largest decline over 10 years	-27.33%	-25.47%	-1.86%
Current Drawdown Current decline from peak	-9.44%	-4.87%	-4.57%
Average Drawdown Average peak-to-trough decline	-7.69%	-8.62%	+0.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.67%	3.08%	+0.59%

Volatility

HMEF.L vs. VDEM.L - Volatility Comparison

HSBC MSCI Emerging Markets UCITS ETF USD (HMEF.L) has a higher volatility of 8.82% compared to Vanguard FTSE Emerging Markets UCITS (VDEM.L) at 5.21%. This indicates that HMEF.L's price experiences larger fluctuations and is considered to be riskier than VDEM.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HMEF.L	VDEM.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.82%	5.21%	+3.61%
Volatility (6M) Calculated over the trailing 6-month period	17.56%	13.57%	+3.99%
Volatility (1Y) Calculated over the trailing 1-year period	19.59%	16.07%	+3.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.78%	16.47%	+0.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	142.57%	18.08%	+124.49%

HMEF.L vs. VDEM.L - Expense Ratio Comparison

HMEF.L has a 0.15% expense ratio, which is lower than VDEM.L'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

HMEF.L vs. VDEM.L - Dividend Comparison

HMEF.L's dividend yield for the trailing twelve months is around 1.70%, less than VDEM.L's 2.07% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HMEF.L HSBC MSCI Emerging Markets UCITS ETF USD	1.70%	1.98%	2.43%	2.58%	2.99%	2.01%	1.66%	2.11%	2.14%	37.43%	168.62%	225.12%
VDEM.L Vanguard FTSE Emerging Markets UCITS	2.07%	2.34%	2.38%	2.58%	3.27%	2.30%	1.81%	2.33%	2.82%	2.16%	2.40%	2.94%

Frequently Asked Questions

Can I hold both HMEF.L and VDEM.L in my portfolio?

HMEF.L and VDEM.L have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, HMEF.L or VDEM.L?

On fees, HMEF.L is cheaper at 0.15% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, HMEF.L or VDEM.L?

HMEF.L is cheaper with a 0.15% expense ratio, compared with 0.22% for VDEM.L.

What is the main difference between HMEF.L and VDEM.L?

HMEF.L tracks MSCI EM NR USD, while VDEM.L tracks FTSE Emerging Index. They also come from different issuers: HSBC and Vanguard. Their fees differ too: 0.15% for HMEF.L and 0.22% for VDEM.L.