TEMUX vs. VEMIX

Last updated Aug 4, 2026

TEMUX (Morgan Stanley Pathway Funds Emerging Markets Equity Fund) and VEMIX (Vanguard Emerging Markets Stock Index Fund Institutional Shares) are both Emerging Markets Equities funds. Over the past 10 years, TEMUX returned 7.84%/yr vs 7.72%/yr for VEMIX. Their correlation of 0.93 means they have usually moved in the same direction. TEMUX charges 0.81%/yr vs 0.06%/yr for VEMIX.

Performance

TEMUX vs. VEMIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Morgan Stanley Pathway Funds Emerging Markets Equity Fund (TEMUX) and Vanguard Emerging Markets Stock Index Fund Institutional Shares (VEMIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TEMUX achieves a 19.24% return, which is significantly higher than VEMIX's 10.30% return. Both investments have delivered pretty close results over the past 10 years, with TEMUX having a 7.84% annualized return and VEMIX not far behind at 7.72%.

TEMUX

• 1D: 2.50%
• 1M: -1.04%
• 6M: 10.47%
• YTD: 19.24%
• 1Y: 37.83%
• 3Y*: 18.63%
• 5Y*: 6.84%
• 10Y*: 7.84%
• ALL TIME*: 5.49%

VEMIX

• 1D: 1.03%
• 1M: 0.54%
• 6M: 4.16%
• YTD: 10.30%
• 1Y: 21.34%
• 3Y*: 15.70%
• 5Y*: 5.94%
• 10Y*: 7.72%
• ALL TIME*: 7.33%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
TEMUX Morgan Stanley Pathway Funds Emerging Markets Equity Fund	$0.00	$0.00	$0.00
VEMIX Vanguard Emerging Markets Stock Index Fund Institutional Shares	$0.00	$0.00	$0.00

TEMUX vs. VEMIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TEMUX Morgan Stanley Pathway Funds Emerging Markets Equity Fund	19.24%	34.68%	5.47%	9.87%	-21.75%	-3.50%	11.18%	22.44%	-18.73%	39.16%
VEMIX Vanguard Emerging Markets Stock Index Fund Institutional Shares	10.30%	24.80%	11.38%	8.85%	-17.75%	0.91%	15.26%	20.35%	-14.55%	31.42%

Correlation

The correlation between TEMUX and VEMIX is 0.84, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.84
Correlation (3Y) Balances recent behavior with more history.	0.87
Correlation (5Y) Shows whether the relationship held over a longer period.	0.91
Correlation (10Y) Provides a long-term view across more market conditions.	0.94
Correlation (All Time) Calculated using the full available price history since Jun 22, 2000	0.93

The correlation between TEMUX and VEMIX has been stable across timeframes, ranging from 0.84 to 0.94 - a consistent structural relationship.

Return for Risk

TEMUX vs. VEMIX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

TEMUX

TEMUX Risk / Return Rank: 78
TEMUX Sharpe Ratio Rank: 81
TEMUX Sortino Ratio Rank: 72
TEMUX Omega Ratio Rank: 76
TEMUX Calmar Ratio Rank: 87
TEMUX Martin Ratio Rank: 74

VEMIX

VEMIX Risk / Return Rank: 45
VEMIX Sharpe Ratio Rank: 45
VEMIX Sortino Ratio Rank: 42
VEMIX Omega Ratio Rank: 43
VEMIX Calmar Ratio Rank: 51
VEMIX Martin Ratio Rank: 45

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

TEMUX vs. VEMIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morgan Stanley Pathway Funds Emerging Markets Equity Fund (TEMUX) and Vanguard Emerging Markets Stock Index Fund Institutional Shares (VEMIX). 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.

	TEMUX	VEMIX	Difference
Sharpe ratio: Return per unit of total volatility	1.97	1.43	+0.54
Sortino ratio: Return per unit of downside risk	2.53	1.99	+0.54
Omega ratio: Gain probability vs. loss probability	1.35	1.26	+0.09
Calmar ratio: Return relative to maximum drawdown	3.22	2.07	+1.15
Martin ratio: Return relative to average drawdown	9.72	6.86	+2.86

TEMUX vs. VEMIX - Sharpe Ratio Comparison

The current TEMUX Sharpe Ratio is 1.97, which is higher than the VEMIX Sharpe Ratio of 1.43. The chart below compares the historical Sharpe Ratios of TEMUX and VEMIX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

TEMUX vs. VEMIX - Drawdown Comparison

The maximum TEMUX drawdown since its inception was -68.20%, roughly equal to the maximum VEMIX drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for TEMUX and VEMIX.

Drawdown Indicators

	TEMUX	VEMIX	Difference
Max Drawdown Largest peak-to-trough decline	-68.20%	-66.43%	-1.77%
Max Drawdown (1Y) Largest decline over 1 year	-13.10%	-11.05%	-2.05%
Max Drawdown (3Y) Largest decline over 3 years	-16.86%	-15.77%	-1.09%
Max Drawdown (5Y) Largest decline over 5 years	-36.42%	-30.68%	-5.74%
Max Drawdown (10Y) Largest decline over 10 years	-40.17%	-36.04%	-4.13%
Current Drawdown Current decline from peak	-7.53%	-3.25%	-4.28%
Average Drawdown Average peak-to-trough decline	-21.75%	-15.91%	-5.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.16%	3.32%	+0.84%

Volatility

TEMUX vs. VEMIX - Volatility Comparison

Morgan Stanley Pathway Funds Emerging Markets Equity Fund (TEMUX) has a higher volatility of 9.32% compared to Vanguard Emerging Markets Stock Index Fund Institutional Shares (VEMIX) at 5.42%. This indicates that TEMUX's price experiences larger fluctuations and is considered to be riskier than VEMIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TEMUX	VEMIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.32%	5.42%	+3.90%
Volatility (6M) Calculated over the trailing 6-month period	18.96%	13.75%	+5.21%
Volatility (1Y) Calculated over the trailing 1-year period	21.41%	16.05%	+5.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.12%	15.60%	+2.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.07%	16.51%	+1.56%

TEMUX vs. VEMIX - Expense Ratio Comparison

TEMUX has a 0.81% expense ratio, which is higher than VEMIX's 0.06% expense ratio.

Dividends

TEMUX vs. VEMIX - Dividend Comparison

TEMUX's dividend yield for the trailing twelve months is around 2.03%, less than VEMIX's 2.33% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TEMUX Morgan Stanley Pathway Funds Emerging Markets Equity Fund	2.03%	2.43%	2.09%	2.41%	1.92%	4.47%	1.96%	1.81%	1.67%	1.26%	1.10%	1.44%
VEMIX Vanguard Emerging Markets Stock Index Fund Institutional Shares	2.33%	2.77%	3.17%	3.51%	4.09%	2.61%	1.90%	3.23%	2.89%	2.33%	2.55%	2.51%

Frequently Asked Questions

Can I hold both TEMUX and VEMIX in my portfolio?

TEMUX and VEMIX have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TEMUX or VEMIX?

TEMUX has higher volatility (9.32%) compared to VEMIX (5.42%). In terms of maximum drawdown, TEMUX dropped -68.20% vs VEMIX's -66.43%.

Which has better risk-adjusted returns?

TEMUX currently has the higher Sharpe Ratio (1.97 vs 1.43), 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.