PEMD.L vs. VDEA.L

Last updated Jun 5, 2026

PEMD.L (Invesco Emerging Markets USD Bond UCITS ETF Dist) and VDEA.L (Vanguard USD Emerging Markets Government Bond UCITS ETF USD Accumulation) are both Emerging Markets Bonds funds - PEMD.L tracks the JPM EMBI Global Diversified TR USD while VDEA.L tracks the Bloomberg EM USD Sovereign + Quasi-Sov Index. Both are passively managed. Over the past 5 years, PEMD.L returned 2.29%/yr vs 2.35%/yr for VDEA.L. Their correlation of 0.85 suggests significant overlap in exposure. PEMD.L charges 0.25%/yr vs 0.23%/yr for VDEA.L.

Performance

PEMD.L vs. VDEA.L - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Emerging Markets USD Bond UCITS ETF Dist (PEMD.L) and Vanguard USD Emerging Markets Government Bond UCITS ETF USD Accumulation (VDEA.L). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with PEMD.L having a 1.58% return and VDEA.L slightly lower at 1.53%.

PEMD.L

• 1D: 0.75%
• 1M: 1.05%
• YTD: 1.58%
• 6M: 2.07%
• 1Y: 10.10%
• 3Y*: 9.49%
• 5Y*: 2.29%
• 10Y*: —

VDEA.L

• 1D: 0.38%
• 1M: 0.92%
• YTD: 1.53%
• 6M: 1.87%
• 1Y: 9.45%
• 3Y*: 8.87%
• 5Y*: 2.35%
• 10Y*: —

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

PEMD.L vs. VDEA.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
PEMD.L Invesco Emerging Markets USD Bond UCITS ETF Dist	1.58%	12.80%	6.20%	10.59%	-16.57%	-2.57%	5.25%	8.86%
VDEA.L Vanguard USD Emerging Markets Government Bond UCITS ETF USD Accumulation	1.53%	11.45%	6.35%	9.72%	-15.28%	-1.74%	6.10%	9.05%

Correlation

The correlation between PEMD.L and VDEA.L is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (All Time) Calculated using the full available price history since Mar 8, 2019	0.85

The correlation between PEMD.L and VDEA.L has been stable across timeframes, ranging from 0.83 to 0.87 - a consistent structural relationship.

Return for Risk

PEMD.L vs. VDEA.L — Risk / Return Rank

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

PEMD.L

PEMD.L Risk / Return Rank: 51
PEMD.L Sharpe Ratio Rank: 50
PEMD.L Sortino Ratio Rank: 55
PEMD.L Omega Ratio Rank: 53
PEMD.L Calmar Ratio Rank: 46
PEMD.L Martin Ratio Rank: 53

VDEA.L

VDEA.L Risk / Return Rank: 57
VDEA.L Sharpe Ratio Rank: 56
VDEA.L Sortino Ratio Rank: 62
VDEA.L Omega Ratio Rank: 56
VDEA.L Calmar Ratio Rank: 53
VDEA.L Martin Ratio Rank: 58

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.

PEMD.L vs. VDEA.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Emerging Markets USD Bond UCITS ETF Dist (PEMD.L) and Vanguard USD Emerging Markets Government Bond UCITS ETF USD Accumulation (VDEA.L). 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.

	PEMD.L	VDEA.L	Difference
Sharpe ratio: Return per unit of total volatility	1.70	1.88	-0.19
Sortino ratio: Return per unit of downside risk	2.59	2.85	-0.26
Omega ratio: Gain probability vs. loss probability	1.32	1.34	-0.02
Calmar ratio: Return relative to maximum drawdown	2.25	2.56	-0.31
Martin ratio: Return relative to average drawdown	8.86	10.10	-1.23
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PEMD.L vs. VDEA.L - Sharpe Ratio Comparison

The current PEMD.L Sharpe Ratio is 1.70, which is comparable to the VDEA.L Sharpe Ratio of 1.88. The chart below compares the historical Sharpe Ratios of PEMD.L and VDEA.L, 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

	PEMD.L	VDEA.L	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.70	1.88	-0.19
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.25	0.33	-0.08
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.42	-0.17

Drawdowns

PEMD.L vs. VDEA.L - Drawdown Comparison

The maximum PEMD.L drawdown since its inception was -26.74%, which is greater than VDEA.L's maximum drawdown of -24.08%. Use the drawdown chart below to compare losses from any high point for PEMD.L and VDEA.L.

Drawdown Indicators

	PEMD.L	VDEA.L	Difference
Max Drawdown Largest peak-to-trough decline	-26.74%	-24.08%	-2.66%
Max Drawdown (1Y) Largest decline over 1 year	-4.46%	-3.66%	-0.80%
Max Drawdown (3Y) Largest decline over 3 years	-8.00%	-6.16%	-1.84%
Max Drawdown (5Y) Largest decline over 5 years	-26.64%	-24.08%	-2.56%
Current Drawdown Current decline from peak	-0.36%	-0.13%	-0.23%
Average Drawdown Average peak-to-trough decline	-6.49%	-6.08%	-0.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.14%	0.93%	+0.21%

Volatility

PEMD.L vs. VDEA.L - Volatility Comparison

Invesco Emerging Markets USD Bond UCITS ETF Dist (PEMD.L) has a higher volatility of 2.41% compared to Vanguard USD Emerging Markets Government Bond UCITS ETF USD Accumulation (VDEA.L) at 2.08%. This indicates that PEMD.L's price experiences larger fluctuations and is considered to be riskier than VDEA.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PEMD.L	VDEA.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.41%	2.08%	+0.33%
Volatility (6M) Calculated over the trailing 6-month period	4.64%	4.05%	+0.59%
Volatility (1Y) Calculated over the trailing 1-year period	5.98%	5.00%	+0.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.31%	7.26%	+2.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.17%	8.37%	+2.80%

PEMD.L vs. VDEA.L - Expense Ratio Comparison

PEMD.L has a 0.25% expense ratio, which is higher than VDEA.L's 0.23% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

PEMD.L vs. VDEA.L - Dividend Comparison

PEMD.L's dividend yield for the trailing twelve months is around 5.45%, while VDEA.L has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
PEMD.L Invesco Emerging Markets USD Bond UCITS ETF Dist	5.45%	5.49%	5.83%	5.54%	4.94%	3.93%	3.60%	4.99%	5.36%
VDEA.L Vanguard USD Emerging Markets Government Bond UCITS ETF USD Accumulation	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PEMD.L and VDEA.L in my portfolio?

PEMD.L and VDEA.L have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, PEMD.L or VDEA.L?

On fees, VDEA.L is cheaper at 0.23% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, PEMD.L or VDEA.L?

VDEA.L is cheaper with a 0.23% expense ratio, compared with 0.25% for PEMD.L.

What is the main difference between PEMD.L and VDEA.L?

PEMD.L tracks JPM EMBI Global Diversified TR USD, while VDEA.L tracks Bloomberg EM USD Sovereign + Quasi-Sov Index. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.25% for PEMD.L and 0.23% for VDEA.L.