PCY vs. GAEM
PCY (Invesco Emerging Markets Sovereign Debt ETF) and GAEM (Simplify Gamma Emerging Market Bond ETF) are both Emerging Markets Bonds funds. PCY is passively managed, while GAEM is actively managed. Over the past year, PCY returned 15.37% vs 13.15% for GAEM. A 0.73 correlation means they provide meaningful diversification when combined. PCY charges 0.50%/yr vs 0.76%/yr for GAEM.
Performance
PCY vs. GAEM - Performance Comparison
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Returns By Period
In the year-to-date period, PCY achieves a 2.20% return, which is significantly lower than GAEM's 3.26% return.
PCY
- 1D
- -0.28%
- 1M
- 1.69%
- YTD
- 2.20%
- 6M
- 1.58%
- 1Y
- 15.37%
- 3Y*
- 11.35%
- 5Y*
- 1.29%
- 10Y*
- 2.72%
GAEM
- 1D
- -0.20%
- 1M
- 0.20%
- YTD
- 3.26%
- 6M
- 4.63%
- 1Y
- 13.15%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
PCY vs. GAEM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
PCY Invesco Emerging Markets Sovereign Debt ETF | 2.20% | 16.31% | -1.76% |
GAEM Simplify Gamma Emerging Market Bond ETF | 3.26% | 13.55% | 3.72% |
Correlation
The correlation between PCY and GAEM is 0.75, 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 | 0.75 |
Correlation (All Time) Calculated using the full available price history since Aug 14, 2024 | 0.73 |
The correlation between PCY and GAEM has been stable across timeframes, ranging from 0.73 to 0.75 - a consistent structural relationship.
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Return for Risk
PCY vs. GAEM — Risk / Return Rank
PCY
GAEM
PCY vs. GAEM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Emerging Markets Sovereign Debt ETF (PCY) and Simplify Gamma Emerging Market Bond ETF (GAEM). 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 | GAEM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.73 | ||
| Sortino ratioReturn per unit of downside risk | -1.51 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.57 | -0.19 |
| Calmar ratioReturn relative to maximum drawdown | 2.61 | 3.66 | -1.04 |
| Martin ratioReturn relative to average drawdown | 10.61 | 16.69 | -6.09 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| PCY | GAEM | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.08 | 2.81 | -0.73 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.10 | — | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.21 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.30 | 2.33 | -2.03 |
Drawdowns
PCY vs. GAEM - Drawdown Comparison
The maximum PCY drawdown since its inception was -49.13%, which is greater than GAEM's maximum drawdown of -3.84%. Use the drawdown chart below to compare losses from any high point for PCY and GAEM.
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Drawdown Indicators
| PCY | GAEM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -49.13% | -3.84% | -45.29% |
Max Drawdown (1Y)Largest decline over 1 year | -5.91% | -3.61% | -2.30% |
Max Drawdown (3Y)Largest decline over 3 years | -11.52% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -37.17% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -37.78% | — | — |
Current DrawdownCurrent decline from peak | -0.31% | -0.20% | -0.11% |
Average DrawdownAverage peak-to-trough decline | -6.97% | -0.52% | -6.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.45% | 0.79% | +0.66% |
Volatility
PCY vs. GAEM - Volatility Comparison
Invesco Emerging Markets Sovereign Debt ETF (PCY) has a higher volatility of 2.30% compared to Simplify Gamma Emerging Market Bond ETF (GAEM) at 1.33%. This indicates that PCY's price experiences larger fluctuations and is considered to be riskier than GAEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| PCY | GAEM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.30% | 1.33% | +0.97% |
Volatility (6M)Calculated over the trailing 6-month period | 5.81% | 3.74% | +2.07% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.43% | 4.71% | +2.72% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.17% | 4.96% | +8.21% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.94% | 4.96% | +7.98% |
PCY vs. GAEM - Expense Ratio Comparison
PCY has a 0.50% expense ratio, which is lower than GAEM's 0.76% expense ratio.
Dividends
PCY vs. GAEM - Dividend Comparison
PCY's dividend yield for the trailing twelve months is around 5.85%, less than GAEM's 7.54% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GAEM Simplify Gamma Emerging Market Bond ETF | 7.54% | 6.50% | 3.78% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
PCY Invesco Emerging Markets Sovereign Debt ETF | 5.85% | 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 GAEM have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PCY has higher volatility (2.30%) compared to GAEM (1.33%). In terms of maximum drawdown, PCY dropped -49.13% vs GAEM's -3.84%.
On 1-year performance, PCY leads with 15.37% vs 13.15% for GAEM. On fees, PCY is cheaper at 0.50% per year. On volatility, GAEM has been the lower-risk option at 1.33%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, PCY has performed better with a 15.37% return vs 13.15%. 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 0.76% for GAEM.
GAEM has the higher dividend yield at 7.54%, compared with 5.85% for PCY.
They also come from different issuers: Invesco and Simplify. Their fees differ too: 0.50% for PCY and 0.76% for GAEM.
GAEM currently has the higher Sharpe Ratio (2.81 vs 2.08), 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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