LEMB vs. VWOB
LEMB (iShares J.P. Morgan EM Local Currency Bond ETF) and VWOB (Vanguard Emerging Markets Government Bond ETF) are both Emerging Markets Bonds funds - LEMB tracks the J.P. Morgan GBI-EM Global 15 cap 4.5 floor while VWOB tracks the Bloomberg USD Emerging Markets Government RIC Capped Index. Both are passively managed. Over the past 10 years, LEMB returned 1.45%/yr vs 3.52%/yr for VWOB. A 0.55 correlation means they provide meaningful diversification when combined. LEMB charges 0.30%/yr vs 0.15%/yr for VWOB.
Performance
LEMB vs. VWOB - Performance Comparison
Loading charts...
Returns By Period
The year-to-date returns for both investments are quite close, with LEMB having a 2.00% return and VWOB slightly higher at 2.09%. Over the past 10 years, LEMB has underperformed VWOB with an annualized return of 1.45%, while VWOB has yielded a comparatively higher 3.52% annualized return.
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%
VWOB
- 1D
- -0.37%
- 1M
- 1.81%
- YTD
- 2.09%
- 6M
- 2.11%
- 1Y
- 10.57%
- 3Y*
- 9.07%
- 5Y*
- 2.13%
- 10Y*
- 3.52%
LEMB vs. VWOB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
VWOB Vanguard Emerging Markets Government Bond ETF | 2.09% | 13.49% | 5.20% | 10.68% | -17.39% | -1.80% | 5.65% | 14.46% | -2.92% | 8.41% |
Correlation
The correlation between LEMB and VWOB is 0.63, 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 | 0.63 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.58 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.61 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.58 |
Correlation (All Time) Calculated using the full available price history since Jun 4, 2013 | 0.55 |
The correlation between LEMB and VWOB has been stable across timeframes, ranging from 0.55 to 0.63 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
LEMB vs. VWOB — Risk / Return Rank
LEMB
VWOB
LEMB vs. VWOB - 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 Vanguard Emerging Markets Government Bond ETF (VWOB). 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.
| LEMB | VWOB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.55 | ||
| Sortino ratioReturn per unit of downside risk | -0.90 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.38 | -0.11 |
| Calmar ratioReturn relative to maximum drawdown | 1.63 | 2.37 | -0.73 |
| Martin ratioReturn relative to average drawdown | 5.38 | 9.98 | -4.60 |
Loading charts...
Drawdowns
LEMB vs. VWOB - Drawdown Comparison
The maximum LEMB drawdown since its inception was -30.82%, which is greater than VWOB's maximum drawdown of -26.98%. Use the drawdown chart below to compare losses from any high point for LEMB and VWOB.
Loading charts...
Drawdown Indicators
| LEMB | VWOB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -30.82% | -26.98% | -3.84% |
Max Drawdown (1Y)Largest decline over 1 year | -6.00% | -4.48% | -1.52% |
Max Drawdown (3Y)Largest decline over 3 years | -10.09% | -7.71% | -2.38% |
Max Drawdown (5Y)Largest decline over 5 years | -23.96% | -26.98% | +3.02% |
Max Drawdown (10Y)Largest decline over 10 years | -29.09% | -26.98% | -2.11% |
Current DrawdownCurrent decline from peak | -4.11% | -0.37% | -3.74% |
Average DrawdownAverage peak-to-trough decline | -12.71% | -4.79% | -7.92% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.82% | 1.06% | +0.76% |
Volatility
LEMB vs. VWOB - Volatility Comparison
iShares J.P. Morgan EM Local Currency Bond ETF (LEMB) has a higher volatility of 2.04% compared to Vanguard Emerging Markets Government Bond ETF (VWOB) at 1.72%. This indicates that LEMB's price experiences larger fluctuations and is considered to be riskier than VWOB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| LEMB | VWOB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.04% | 1.72% | +0.32% |
Volatility (6M)Calculated over the trailing 6-month period | 5.59% | 4.36% | +1.23% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.73% | 5.29% | +1.44% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.25% | 9.19% | -0.94% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.27% | 9.35% | -0.08% |
LEMB vs. VWOB - Expense Ratio Comparison
LEMB has a 0.30% expense ratio, which is higher than VWOB's 0.15% expense ratio.
Dividends
LEMB vs. VWOB - Dividend Comparison
LEMB's dividend yield for the trailing twelve months is around 2.39%, less than VWOB's 5.81% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
VWOB Vanguard Emerging Markets Government Bond ETF | 5.81% | 5.92% | 6.08% | 5.50% | 5.30% | 4.04% | 4.18% | 4.58% | 4.52% | 4.61% | 4.71% | 4.93% |
Frequently Asked Questions
LEMB and VWOB have a correlation of 0.63, 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 VWOB (1.72%). In terms of maximum drawdown, LEMB dropped -30.82% vs VWOB's -26.98%.
On 10-year performance, VWOB leads with 3.52% vs 1.45% for LEMB. On fees, VWOB is cheaper at 0.15% per year. On volatility, VWOB has been the lower-risk option at 1.72%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VWOB has performed better with a 3.52% return vs 1.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VWOB is cheaper with a 0.15% expense ratio, compared with 0.30% for LEMB.
VWOB has the higher dividend yield at 5.81%, compared with 2.39% for LEMB.
LEMB tracks J.P. Morgan GBI-EM Global 15 cap 4.5 floor, while VWOB tracks Bloomberg USD Emerging Markets Government RIC Capped Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.30% for LEMB and 0.15% for VWOB.
VWOB currently has the higher Sharpe Ratio (2.01 vs 1.46), 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.
Find the right allocation for LEMB and VWOB
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer