ISHG vs. LEMB
ISHG (iShares 1-3 Year International Treasury Bond ETF) and LEMB (iShares J.P. Morgan EM Local Currency Bond ETF) are both exchange-traded funds - ISHG is a International Government Bonds fund tracking the S&P/Citigroup International Treasury Bond Index Ex-US 1-3 Year, while LEMB is a Emerging Markets Bonds fund tracking the J.P. Morgan GBI-EM Global 15 cap 4.5 floor. Both are passively managed. Over the past 10 years, ISHG returned -0.27%/yr vs 1.45%/yr for LEMB. At a 0.50 correlation, their price movements are largely independent. ISHG charges 0.35%/yr vs 0.30%/yr for LEMB.
Performance
ISHG vs. LEMB - Performance Comparison
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Returns By Period
In the year-to-date period, ISHG achieves a -1.37% return, which is significantly lower than LEMB's 2.00% return. Over the past 10 years, ISHG has underperformed LEMB with an annualized return of -0.27%, while LEMB has yielded a comparatively higher 1.45% annualized return.
ISHG
- 1D
- -0.24%
- 1M
- -1.45%
- YTD
- -1.37%
- 6M
- -1.13%
- 1Y
- 0.54%
- 3Y*
- 3.63%
- 5Y*
- -1.07%
- 10Y*
- -0.27%
LEMB
- 1D
- -0.05%
- 1M
- 1.68%
- YTD
- 2.00%
- 6M
- 2.42%
- 1Y
- 9.76%
- 3Y*
- 5.90%
- 5Y*
- 1.19%
- 10Y*
- 1.45%
ISHG vs. LEMB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ISHG iShares 1-3 Year International Treasury Bond ETF | -1.37% | 13.31% | -4.16% | 3.76% | -10.95% | -7.05% | 7.47% | -0.64% | -3.54% | 10.91% |
LEMB iShares J.P. Morgan EM Local Currency Bond ETF | 2.00% | 18.02% | -1.72% | 7.23% | -10.74% | -9.92% | 3.10% | 6.40% | -7.49% | 12.49% |
Correlation
The correlation between ISHG and LEMB is 0.75, 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 | 0.75 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.75 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.74 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.58 |
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011 | 0.50 |
Over the past year, ISHG and LEMB have become more correlated (0.75) than their long-term average of 0.50, meaning their price movements have been converging.
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Return for Risk
ISHG vs. LEMB — Risk / Return Rank
ISHG
LEMB
ISHG vs. LEMB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year International Treasury Bond ETF (ISHG) and iShares J.P. Morgan EM Local Currency Bond ETF (LEMB). 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.
| ISHG | LEMB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.38 | ||
| Sortino ratioReturn per unit of downside risk | -1.87 | ||
| Omega ratioGain probability vs. loss probability | 1.02 | 1.28 | -0.26 |
| Calmar ratioReturn relative to maximum drawdown | 0.11 | 1.63 | -1.53 |
| Martin ratioReturn relative to average drawdown | 0.26 | 5.38 | -5.13 |
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Drawdowns
ISHG vs. LEMB - Drawdown Comparison
The maximum ISHG drawdown since its inception was -37.24%, which is greater than LEMB's maximum drawdown of -30.82%. Use the drawdown chart below to compare losses from any high point for ISHG and LEMB.
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Drawdown Indicators
| ISHG | LEMB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -37.24% | -30.82% | -6.42% |
Max Drawdown (1Y)Largest decline over 1 year | -5.02% | -6.00% | +0.98% |
Max Drawdown (3Y)Largest decline over 3 years | -8.21% | -10.09% | +1.88% |
Max Drawdown (5Y)Largest decline over 5 years | -22.45% | -23.96% | +1.51% |
Max Drawdown (10Y)Largest decline over 10 years | -25.56% | -29.09% | +3.53% |
Current DrawdownCurrent decline from peak | -23.29% | -4.11% | -19.18% |
Average DrawdownAverage peak-to-trough decline | -18.44% | -12.71% | -5.73% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.11% | 1.82% | +0.29% |
Volatility
ISHG vs. LEMB - Volatility Comparison
The current volatility for iShares 1-3 Year International Treasury Bond ETF (ISHG) is 1.76%, while iShares J.P. Morgan EM Local Currency Bond ETF (LEMB) has a volatility of 2.04%. This indicates that ISHG experiences smaller price fluctuations and is considered to be less risky than LEMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ISHG | LEMB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.76% | 2.04% | -0.28% |
Volatility (6M)Calculated over the trailing 6-month period | 4.89% | 5.59% | -0.70% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.56% | 6.73% | -0.17% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.59% | 8.25% | -0.66% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.93% | 9.27% | -2.34% |
ISHG vs. LEMB - Expense Ratio Comparison
ISHG has a 0.35% expense ratio, which is higher than LEMB's 0.30% expense ratio.
Dividends
ISHG vs. LEMB - Dividend Comparison
ISHG's dividend yield for the trailing twelve months is around 1.47%, less than LEMB's 2.39% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ISHG iShares 1-3 Year International Treasury Bond ETF | 1.47% | 1.45% | 2.56% | 0.18% | 0.00% | 1.29% | 0.00% | 0.00% | 1.80% | 0.46% | 0.00% | 0.09% |
LEMB iShares J.P. Morgan EM Local Currency Bond ETF | 2.39% | 2.44% | 0.00% | 1.34% | 0.86% | 3.89% | 0.00% | 4.39% | 3.46% | 0.00% | 0.00% | 0.64% |
Frequently Asked Questions
ISHG and LEMB have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LEMB has higher volatility (2.04%) compared to ISHG (1.76%). In terms of maximum drawdown, ISHG dropped -37.24% vs LEMB's -30.82%.
On 10-year performance, LEMB leads with 1.45% vs -0.27% for ISHG. On fees, LEMB is cheaper at 0.30% per year. On volatility, ISHG has been the lower-risk option at 1.76%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, LEMB has performed better with a 1.45% return vs -0.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LEMB is cheaper with a 0.30% expense ratio, compared with 0.35% for ISHG.
LEMB has the higher dividend yield at 2.39%, compared with 1.47% for ISHG.
ISHG is categorized as International Government Bonds, while LEMB is Emerging Markets Bonds. ISHG tracks S&P/Citigroup International Treasury Bond Index Ex-US 1-3 Year, while LEMB tracks J.P. Morgan GBI-EM Global 15 cap 4.5 floor. Their fees differ too: 0.35% for ISHG and 0.30% for LEMB.
LEMB currently has the higher Sharpe Ratio (1.46 vs 0.08), 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.
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