LEMB vs. FEMB
LEMB (iShares J.P. Morgan EM Local Currency Bond ETF) and FEMB (First Trust Emerging Markets Local Currency Bond ETF) are both Emerging Markets Bonds funds. LEMB is passively managed, while FEMB is actively managed. Over the past 10 years, LEMB returned 1.37%/yr vs 2.51%/yr for FEMB. A 0.60 correlation means they provide meaningful diversification when combined. LEMB charges 0.30%/yr vs 0.85%/yr for FEMB.
Performance
LEMB vs. FEMB - Performance Comparison
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Returns By Period
In the year-to-date period, LEMB achieves a 1.19% return, which is significantly higher than FEMB's 0.60% return. Over the past 10 years, LEMB has underperformed FEMB with an annualized return of 1.37%, while FEMB has yielded a comparatively higher 2.51% annualized return.
LEMB
- 1D
- -0.57%
- 1M
- 1.13%
- YTD
- 1.19%
- 6M
- 2.18%
- 1Y
- 9.81%
- 3Y*
- 6.09%
- 5Y*
- 0.59%
- 10Y*
- 1.37%
FEMB
- 1D
- -0.81%
- 1M
- 0.57%
- YTD
- 0.60%
- 6M
- 0.88%
- 1Y
- 10.20%
- 3Y*
- 7.79%
- 5Y*
- 1.63%
- 10Y*
- 2.51%
LEMB vs. FEMB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LEMB iShares J.P. Morgan EM Local Currency Bond ETF | 1.19% | 18.02% | -1.72% | 7.23% | -10.74% | -9.92% | 3.10% | 6.40% | -7.49% | 12.49% |
FEMB First Trust Emerging Markets Local Currency Bond ETF | 0.60% | 21.77% | -5.61% | 17.12% | -10.50% | -13.40% | 3.16% | 11.52% | -7.19% | 11.92% |
Correlation
The correlation between LEMB and FEMB is 0.73, 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 | 0.73 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.74 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.77 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.68 |
Correlation (All Time) Calculated using the full available price history since Nov 6, 2014 | 0.60 |
The correlation between LEMB and FEMB shifts across timeframes, from 0.60 (all time) to 0.77 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
LEMB vs. FEMB — Risk / Return Rank
LEMB
FEMB
LEMB vs. FEMB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares J.P. Morgan EM Local Currency Bond ETF (LEMB) and First Trust Emerging Markets Local Currency Bond ETF (FEMB). 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.
| LEMB | FEMB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.28 | ||
| Sortino ratioReturn per unit of downside risk | +0.32 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.23 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 1.64 | 1.35 | +0.29 |
| Martin ratioReturn relative to average drawdown | 5.58 | 4.34 | +1.24 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| LEMB | FEMB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.51 | 1.22 | +0.28 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.07 | 0.16 | -0.09 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.15 | 0.23 | -0.08 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.05 | 0.09 | -0.04 |
Drawdowns
LEMB vs. FEMB - Drawdown Comparison
The maximum LEMB drawdown since its inception was -30.82%, roughly equal to the maximum FEMB drawdown of -30.44%. Use the drawdown chart below to compare losses from any high point for LEMB and FEMB.
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Drawdown Indicators
| LEMB | FEMB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -30.82% | -30.44% | -0.38% |
Max Drawdown (1Y)Largest decline over 1 year | -6.00% | -7.58% | +1.58% |
Max Drawdown (3Y)Largest decline over 3 years | -10.09% | -10.13% | +0.04% |
Max Drawdown (5Y)Largest decline over 5 years | -25.29% | -27.85% | +2.56% |
Max Drawdown (10Y)Largest decline over 10 years | -29.09% | -30.44% | +1.35% |
Current DrawdownCurrent decline from peak | -4.87% | -3.91% | -0.96% |
Average DrawdownAverage peak-to-trough decline | -12.74% | -9.93% | -2.81% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.76% | 2.35% | -0.59% |
Volatility
LEMB vs. FEMB - Volatility Comparison
The current volatility for iShares J.P. Morgan EM Local Currency Bond ETF (LEMB) is 2.09%, while First Trust Emerging Markets Local Currency Bond ETF (FEMB) has a volatility of 3.05%. This indicates that LEMB experiences smaller price fluctuations and is considered to be less risky than FEMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LEMB | FEMB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.09% | 3.05% | -0.96% |
Volatility (6M)Calculated over the trailing 6-month period | 5.34% | 6.57% | -1.23% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.54% | 8.36% | -1.82% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.24% | 10.26% | -2.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.29% | 10.99% | -1.70% |
LEMB vs. FEMB - Expense Ratio Comparison
LEMB has a 0.30% expense ratio, which is lower than FEMB's 0.85% expense ratio.
Dividends
LEMB vs. FEMB - Dividend Comparison
LEMB's dividend yield for the trailing twelve months is around 2.41%, less than FEMB's 6.06% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FEMB First Trust Emerging Markets Local Currency Bond ETF | 6.06% | 5.67% | 6.09% | 5.15% | 6.35% | 6.12% | 5.29% | 5.40% | 5.86% | 6.38% | 5.83% | 4.89% |
LEMB iShares J.P. Morgan EM Local Currency Bond ETF | 2.41% | 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
LEMB and FEMB have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FEMB has higher volatility (3.05%) compared to LEMB (2.09%). In terms of maximum drawdown, LEMB dropped -30.82% vs FEMB's -30.44%.
On 10-year performance, FEMB leads with 2.51% vs 1.37% for LEMB. On fees, LEMB is cheaper at 0.30% per year. On volatility, LEMB has been the lower-risk option at 2.09%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FEMB has performed better with a 2.51% return vs 1.37%. 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 0.85% for FEMB.
FEMB has the higher dividend yield at 6.06%, compared with 2.41% for LEMB.
They also come from different issuers: iShares and First Trust. Their fees differ too: 0.30% for LEMB and 0.85% for FEMB.
LEMB currently has the higher Sharpe Ratio (1.51 vs 1.22), 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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