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 1.97%/yr vs 1.90%/yr for FEMB. Their 0.43 correlation means their historical movements had little consistent relationship. 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 -0.05% return, which is significantly lower than FEMB's 2.20% return. Both investments have delivered pretty close results over the past 10 years, with PCY having a 1.97% annualized return and FEMB not far behind at 1.90%.
PCY
- 1D
- -0.05%
- 1M
- -2.89%
- 6M
- -0.09%
- YTD
- -0.05%
- 1Y
- 7.63%
- 3Y*
- 8.81%
- 5Y*
- 0.74%
- 10Y*
- 1.97%
- ALL TIME*
- 4.54%
FEMB
- 1D
- -0.10%
- 1M
- 0.67%
- 6M
- -0.39%
- YTD
- 2.20%
- 1Y
- 9.79%
- 3Y*
- 6.39%
- 5Y*
- 2.76%
- 10Y*
- 1.90%
- ALL TIME*
- 1.09%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $2.81M | $3.29M | $2.60M | |
| $4.18M | $4.81M | $6.27M |
PCY vs. FEMB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PCY Invesco Emerging Markets Sovereign Debt ETF | -0.05% | 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 | 2.20% | 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 0.57, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.57 |
Correlation (3Y) Balances recent behavior with more history. | 0.52 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.55 |
Correlation (10Y) Provides a long-term view across more market conditions. | 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 0.57 (1 year), 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 | -0.16 | ||
| Sortino ratioReturn per unit of downside risk | -0.27 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.23 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 1.37 | 1.35 | +0.02 |
| Martin ratioReturn relative to average drawdown | 5.11 | 3.90 | +1.21 |
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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 | -10.03% | -10.13% | +0.10% |
Max Drawdown (5Y)Largest decline over 5 years | -37.17% | -25.15% | -12.02% |
Max Drawdown (10Y)Largest decline over 10 years | -37.78% | -30.44% | -7.34% |
Current DrawdownCurrent decline from peak | -3.32% | -2.39% | -0.93% |
Average DrawdownAverage peak-to-trough decline | -6.92% | -9.84% | +2.92% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.58% | 2.62% | -1.04% |
Volatility
PCY vs. FEMB - Volatility Comparison
Invesco Emerging Markets Sovereign Debt ETF (PCY) and First Trust Emerging Markets Local Currency Bond ETF (FEMB) have volatilities of 1.80% and 1.79%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. 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 | 1.80% | 1.79% | +0.01% |
Volatility (6M)Calculated over the trailing 6-month period | 6.05% | 6.95% | -0.90% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.39% | 8.20% | -0.81% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.19% | 10.23% | +2.96% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.94% | 10.66% | +2.28% |
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 6.02%, less than FEMB's 6.19% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FEMB First Trust Emerging Markets Local Currency Bond ETF | 6.19% | 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 | 6.02% | 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 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PCY has higher volatility (1.80%) compared to FEMB (1.79%). In terms of maximum drawdown, PCY dropped -49.13% vs FEMB's -30.44%.
On 10-year performance, PCY leads with 1.97% vs 1.90% for FEMB. On fees, PCY is cheaper at 0.50% per year. Their volatility is very similar. 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 1.97% 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.
FEMB has the higher dividend yield at 6.19%, compared with 6.02% for PCY.
They also come from different issuers: Invesco and First Trust. Their fees differ too: 0.50% for PCY and 0.85% for FEMB.
FEMB currently has the higher Sharpe Ratio (1.25 vs 1.09), 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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