PCY vs. BNDX

Last updated Jun 9, 2026

PCY (Invesco Emerging Markets Sovereign Debt ETF) and BNDX (Vanguard Total International Bond ETF) are both exchange-traded funds - PCY is a Emerging Markets Bonds fund tracking the DB Emerging Market USD Liquid Balanced Index, while BNDX is a Global Bonds fund tracking the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged). Both are passively managed. Over the past 10 years, PCY returned 2.55%/yr vs 1.65%/yr for BNDX. At a 0.42 correlation, their price movements are largely independent. PCY charges 0.50%/yr vs 0.07%/yr for BNDX.

Performance

PCY vs. BNDX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Emerging Markets Sovereign Debt ETF (PCY) and Vanguard Total International Bond ETF (BNDX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PCY achieves a 1.26% return, which is significantly higher than BNDX's 0.37% return. Over the past 10 years, PCY has outperformed BNDX with an annualized return of 2.55%, while BNDX has yielded a comparatively lower 1.65% annualized return.

PCY

• 1D: -0.33%
• 1M: -0.74%
• YTD: 1.26%
• 6M: 1.62%
• 1Y: 13.56%
• 3Y*: 10.81%
• 5Y*: 0.99%
• 10Y*: 2.55%

BNDX

• 1D: -0.12%
• 1M: -0.16%
• YTD: 0.37%
• 6M: 0.55%
• 1Y: 1.86%
• 3Y*: 4.01%
• 5Y*: 0.25%
• 10Y*: 1.65%

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

PCY vs. BNDX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PCY Invesco Emerging Markets Sovereign Debt ETF	1.26%	16.31%	2.55%	18.48%	-24.47%	-4.30%	2.29%	17.66%	-6.16%	9.71%
BNDX Vanguard Total International Bond ETF	0.37%	2.86%	3.57%	8.77%	-12.76%	-2.29%	4.65%	7.87%	2.81%	2.40%

Correlation

The correlation between PCY and BNDX is 0.67, 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	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.48
Correlation (All Time) Calculated using the full available price history since Jun 4, 2013	0.42

Over the past year, PCY and BNDX have become more correlated (0.67) than their long-term average of 0.42, meaning their price movements have been converging.

PCY vs. BNDX - Sectors Allocation Comparison

Sectors	PCY	BNDX
Financial Services	0.0%	0.0%
Basic Materials	-	-
Communication Services	-	0.0%
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.0%
Healthcare	-	0.0%
Industrials	-	0.0%
Real Estate	-	0.0%
Technology	-	-
Utilities	-	0.0%

Return for Risk

PCY vs. BNDX — Risk / Return Rank

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

PCY

PCY Risk / Return Rank: 59
PCY Sharpe Ratio Rank: 61
PCY Sortino Ratio Rank: 62
PCY Omega Ratio Rank: 61
PCY Calmar Ratio Rank: 52
PCY Martin Ratio Rank: 58

BNDX

BNDX Risk / Return Rank: 18
BNDX Sharpe Ratio Rank: 19
BNDX Sortino Ratio Rank: 17
BNDX Omega Ratio Rank: 17
BNDX Calmar Ratio Rank: 18
BNDX Martin Ratio Rank: 18

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.

PCY vs. BNDX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Emerging Markets Sovereign Debt ETF (PCY) and Vanguard Total International Bond ETF (BNDX). 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.

	PCY	BNDX	Difference
Sharpe ratio: Return per unit of total volatility	1.83	0.54	+1.28
Sortino ratio: Return per unit of downside risk	2.61	0.79	+1.83
Omega ratio: Gain probability vs. loss probability	1.34	1.10	+0.24
Calmar ratio: Return relative to maximum drawdown	2.31	0.64	+1.67
Martin ratio: Return relative to average drawdown	9.34	1.79	+7.54
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PCY vs. BNDX - Sharpe Ratio Comparison

The current PCY Sharpe Ratio is 1.83, which is higher than the BNDX Sharpe Ratio of 0.54. The chart below compares the historical Sharpe Ratios of PCY and BNDX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	PCY	BNDX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.83	0.54	+1.28
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.08	0.05	+0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.20	0.41	-0.21
Sharpe Ratio (All Time) Calculated using the full available price history	0.29	0.60	-0.31

Drawdowns

PCY vs. BNDX - Drawdown Comparison

The maximum PCY drawdown since its inception was -49.13%, which is greater than BNDX's maximum drawdown of -16.23%. Use the drawdown chart below to compare losses from any high point for PCY and BNDX.

Drawdown Indicators

	PCY	BNDX	Difference
Max Drawdown Largest peak-to-trough decline	-49.13%	-16.23%	-32.90%
Max Drawdown (1Y) Largest decline over 1 year	-5.91%	-2.93%	-2.98%
Max Drawdown (3Y) Largest decline over 3 years	-11.52%	-2.93%	-8.59%
Max Drawdown (5Y) Largest decline over 5 years	-37.17%	-15.86%	-21.31%
Max Drawdown (10Y) Largest decline over 10 years	-37.78%	-16.23%	-21.55%
Current Drawdown Current decline from peak	-1.23%	-1.65%	+0.42%
Average Drawdown Average peak-to-trough decline	-6.97%	-3.08%	-3.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.46%	1.04%	+0.42%

Volatility

PCY vs. BNDX - Volatility Comparison

Invesco Emerging Markets Sovereign Debt ETF (PCY) has a higher volatility of 2.20% compared to Vanguard Total International Bond ETF (BNDX) at 1.47%. This indicates that PCY's price experiences larger fluctuations and is considered to be riskier than BNDX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PCY	BNDX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.20%	1.47%	+0.73%
Volatility (6M) Calculated over the trailing 6-month period	5.83%	2.91%	+2.92%
Volatility (1Y) Calculated over the trailing 1-year period	7.46%	3.43%	+4.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.17%	4.88%	+8.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.95%	4.09%	+8.86%

PCY vs. BNDX - Expense Ratio Comparison

PCY has a 0.50% expense ratio, which is higher than BNDX's 0.07% expense ratio.

Dividends

PCY vs. BNDX - Dividend Comparison

PCY's dividend yield for the trailing twelve months is around 5.91%, more than BNDX's 4.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BNDX Vanguard Total International Bond ETF	4.50%	4.39%	4.18%	4.42%	1.51%	3.74%	1.11%	3.40%	3.01%	2.23%	1.89%	1.63%
PCY Invesco Emerging Markets Sovereign Debt ETF	5.91%	5.93%	6.65%	6.48%	6.81%	4.80%	4.45%	4.78%	4.93%	4.80%	5.19%	5.46%

Frequently Asked Questions

Can I hold both PCY and BNDX in my portfolio?

PCY and BNDX have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PCY or BNDX?

PCY has higher volatility (2.20%) compared to BNDX (1.47%). In terms of maximum drawdown, PCY dropped -49.13% vs BNDX's -16.23%.

Which ETF is better, PCY or BNDX?

On 10-year performance, PCY leads with 2.55% vs 1.65% for BNDX. On fees, BNDX is cheaper at 0.07% per year. On volatility, BNDX has been the lower-risk option at 1.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PCY or BNDX?

Over the 10-year period, PCY has performed better with a 2.55% return vs 1.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PCY or BNDX?

BNDX is cheaper with a 0.07% expense ratio, compared with 0.50% for PCY.

Which ETF pays a higher dividend yield, PCY or BNDX?

PCY has the higher dividend yield at 5.91%, compared with 4.50% for BNDX.

What is the main difference between PCY and BNDX?

PCY is categorized as Emerging Markets Bonds, while BNDX is Global Bonds. PCY tracks DB Emerging Market USD Liquid Balanced Index, while BNDX tracks Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged). They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.50% for PCY and 0.07% for BNDX.

Which has better risk-adjusted returns?

PCY currently has the higher Sharpe Ratio (1.83 vs 0.54), 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.