PCY vs. FEMB
PCY (Invesco Emerging Markets Sovereign Debt ETF) and FEMB (First Trust Emerging Markets Local Currency Bond ETF) are both Emerging Markets Bonds funds. PCY is passively managed, while FEMB is actively managed. Over the past 10 years, PCY returned 2.76%/yr vs 1.90%/yr for FEMB. At a 0.43 correlation, their price movements are largely independent. PCY charges 0.50%/yr vs 0.85%/yr for FEMB.
Performance
PCY vs. FEMB - 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 FEMB's 1.12% return. Over the past 10 years, PCY has outperformed FEMB with an annualized return of 2.76%, while FEMB has yielded a comparatively lower 1.90% 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%
FEMB
- 1D
- -0.53%
- 1M
- 1.08%
- YTD
- 1.12%
- 6M
- 1.60%
- 1Y
- 9.82%
- 3Y*
- 6.95%
- 5Y*
- 2.30%
- 10Y*
- 1.90%
PCY vs. FEMB - 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% |
FEMB First Trust Emerging Markets Local Currency Bond ETF | 1.12% | 21.77% | -5.61% | 17.12% | -10.50% | -13.40% | 3.16% | 11.52% | -7.19% | 11.92% |
Correlation
The correlation between PCY and FEMB is 0.53, 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 | 0.53 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.53 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.55 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since Nov 5, 2014 | 0.43 |
The correlation between PCY and FEMB shifts across timeframes, from 0.43 (all time) to 0.55 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
PCY vs. FEMB — Risk / Return Rank
PCY
FEMB
PCY vs. FEMB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Emerging Markets Sovereign Debt ETF (PCY) 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.
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 | FEMB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.82 | ||
| Sortino ratioReturn per unit of downside risk | +1.14 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.21 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 2.50 | 1.30 | +1.20 |
| Martin ratioReturn relative to average drawdown | 10.12 | 3.97 | +6.15 |
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Drawdowns
PCY vs. FEMB - Drawdown Comparison
The maximum PCY drawdown since its inception was -49.13%, which is greater than FEMB's maximum drawdown of -30.44%. Use the drawdown chart below to compare losses from any high point for PCY and FEMB.
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Drawdown Indicators
| PCY | FEMB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -49.13% | -30.44% | -18.69% |
Max Drawdown (1Y)Largest decline over 1 year | -5.91% | -7.58% | +1.67% |
Max Drawdown (3Y)Largest decline over 3 years | -11.52% | -10.13% | -1.39% |
Max Drawdown (5Y)Largest decline over 5 years | -37.17% | -25.93% | -11.24% |
Max Drawdown (10Y)Largest decline over 10 years | -37.78% | -30.44% | -7.34% |
Current DrawdownCurrent decline from peak | -0.49% | -3.41% | +2.92% |
Average DrawdownAverage peak-to-trough decline | -6.96% | -9.90% | +2.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.46% | 2.48% | -1.02% |
Volatility
PCY vs. FEMB - Volatility Comparison
The current volatility for Invesco Emerging Markets Sovereign Debt ETF (PCY) is 2.18%, while First Trust Emerging Markets Local Currency Bond ETF (FEMB) has a volatility of 2.80%. This indicates that PCY 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
| PCY | FEMB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.18% | 2.80% | -0.62% |
Volatility (6M)Calculated over the trailing 6-month period | 5.99% | 6.87% | -0.88% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.53% | 8.61% | -1.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.18% | 10.27% | +2.91% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.96% | 10.86% | +2.10% |
PCY vs. FEMB - Expense Ratio Comparison
PCY has a 0.50% expense ratio, which is lower than FEMB's 0.85% expense ratio.
Dividends
PCY vs. FEMB - Dividend Comparison
PCY's dividend yield for the trailing twelve months is around 6.32%, more than FEMB's 6.03% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FEMB First Trust Emerging Markets Local Currency Bond ETF | 6.03% | 5.67% | 6.09% | 5.15% | 6.35% | 6.12% | 5.29% | 5.40% | 5.86% | 6.38% | 5.83% | 4.89% |
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
PCY and FEMB have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FEMB has higher volatility (2.80%) compared to PCY (2.18%). In terms of maximum drawdown, PCY dropped -49.13% vs FEMB's -30.44%.
On 10-year performance, PCY leads with 2.76% vs 1.90% for FEMB. On fees, PCY is cheaper at 0.50% per year. On volatility, PCY has been the lower-risk option at 2.18%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, PCY has performed better with a 2.76% return vs 1.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
PCY is cheaper with a 0.50% expense ratio, compared with 0.85% for FEMB.
PCY has the higher dividend yield at 6.32%, compared with 6.03% for FEMB.
They also come from different issuers: Invesco and First Trust. Their fees differ too: 0.50% for PCY and 0.85% for FEMB.
PCY currently has the higher Sharpe Ratio (1.96 vs 1.15), 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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