PCY vs. EMB
PCY (Invesco Emerging Markets Sovereign Debt ETF) and EMB (iShares J.P. Morgan USD Emerging Markets Bond ETF) are both Emerging Markets Bonds funds - PCY tracks the DB Emerging Market USD Liquid Balanced Index while EMB tracks the J.P. Morgan EMBI Global Core Index. Both are passively managed. Over the past 10 years, PCY returned 2.76%/yr vs 3.32%/yr for EMB. Their correlation of 0.81 suggests significant overlap in exposure. PCY charges 0.50%/yr vs 0.39%/yr for EMB.
Performance
PCY vs. EMB - Performance Comparison
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Returns By Period
In the year-to-date period, PCY achieves a 2.88% return, which is significantly higher than EMB's 2.33% return. Over the past 10 years, PCY has underperformed EMB with an annualized return of 2.76%, while EMB has yielded a comparatively higher 3.32% annualized return.
PCY
- 1D
- -0.49%
- 1M
- 2.56%
- YTD
- 2.88%
- 6M
- 2.98%
- 1Y
- 14.69%
- 3Y*
- 10.82%
- 5Y*
- 1.46%
- 10Y*
- 2.76%
EMB
- 1D
- -0.34%
- 1M
- 1.72%
- YTD
- 2.33%
- 6M
- 2.30%
- 1Y
- 11.30%
- 3Y*
- 9.42%
- 5Y*
- 1.91%
- 10Y*
- 3.32%
PCY vs. EMB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PCY Invesco Emerging Markets Sovereign Debt ETF | 2.88% | 16.31% | 2.55% | 18.48% | -24.47% | -4.30% | 2.29% | 17.66% | -6.16% | 9.71% |
EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 2.33% | 13.85% | 5.54% | 10.62% | -18.63% | -2.23% | 5.42% | 15.48% | -5.47% | 10.28% |
Correlation
The correlation between PCY and EMB is 0.95, 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 | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.94 |
Correlation (All Time) Calculated using the full available price history since Dec 19, 2007 | 0.81 |
The correlation between PCY and EMB shifts across timeframes, from 0.81 (all time) to 0.95 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
PCY vs. EMB — Risk / Return Rank
PCY
EMB
PCY vs. EMB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Emerging Markets Sovereign Debt ETF (PCY) and iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB). 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.
| PCY | EMB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.03 | ||
| Sortino ratioReturn per unit of downside risk | -0.12 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.39 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 2.50 | 2.52 | -0.02 |
| Martin ratioReturn relative to average drawdown | 10.12 | 10.72 | -0.61 |
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Drawdowns
PCY vs. EMB - Drawdown Comparison
The maximum PCY drawdown since its inception was -49.13%, which is greater than EMB's maximum drawdown of -34.70%. Use the drawdown chart below to compare losses from any high point for PCY and EMB.
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Drawdown Indicators
| PCY | EMB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -49.13% | -34.70% | -14.43% |
Max Drawdown (1Y)Largest decline over 1 year | -5.91% | -4.51% | -1.40% |
Max Drawdown (3Y)Largest decline over 3 years | -11.52% | -7.95% | -3.57% |
Max Drawdown (5Y)Largest decline over 5 years | -37.17% | -28.74% | -8.43% |
Max Drawdown (10Y)Largest decline over 10 years | -37.78% | -28.74% | -9.04% |
Current DrawdownCurrent decline from peak | -0.49% | -0.34% | -0.15% |
Average DrawdownAverage peak-to-trough decline | -6.96% | -5.05% | -1.91% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.46% | 1.06% | +0.40% |
Volatility
PCY vs. EMB - Volatility Comparison
Invesco Emerging Markets Sovereign Debt ETF (PCY) has a higher volatility of 2.18% compared to iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) at 1.77%. This indicates that PCY's price experiences larger fluctuations and is considered to be riskier than EMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| PCY | EMB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.18% | 1.77% | +0.41% |
Volatility (6M)Calculated over the trailing 6-month period | 5.99% | 4.70% | +1.29% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.53% | 5.69% | +1.84% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.18% | 9.76% | +3.42% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.96% | 9.96% | +3.00% |
PCY vs. EMB - Expense Ratio Comparison
PCY has a 0.50% expense ratio, which is higher than EMB's 0.39% expense ratio.
Dividends
PCY vs. EMB - Dividend Comparison
PCY's dividend yield for the trailing twelve months is around 6.32%, more than EMB's 5.03% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 5.03% | 4.98% | 5.46% | 4.74% | 5.04% | 3.89% | 3.88% | 4.51% | 5.64% | 4.54% | 4.83% | 4.84% |
PCY Invesco Emerging Markets Sovereign Debt ETF | 6.32% | 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
With a correlation of 0.95, PCY and EMB move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
PCY has higher volatility (2.18%) compared to EMB (1.77%). In terms of maximum drawdown, PCY dropped -49.13% vs EMB's -34.70%.
On 10-year performance, EMB leads with 3.32% vs 2.76% for PCY. On fees, EMB is cheaper at 0.39% per year. On volatility, EMB has been the lower-risk option at 1.77%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, EMB has performed better with a 3.32% return vs 2.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
EMB is cheaper with a 0.39% expense ratio, compared with 0.50% for PCY.
PCY has the higher dividend yield at 6.32%, compared with 5.03% for EMB.
PCY tracks DB Emerging Market USD Liquid Balanced Index, while EMB tracks J.P. Morgan EMBI Global Core Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.50% for PCY and 0.39% for EMB.
EMB currently has the higher Sharpe Ratio (2.00 vs 1.96), 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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