VDEM.L vs. IEF
VDEM.L (Vanguard FTSE Emerging Markets UCITS) and IEF (iShares 7-10 Year Treasury Bond ETF) are both exchange-traded funds - VDEM.L is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index. Both are passively managed. Over the past 10 years, VDEM.L returned 8.89%/yr vs 0.63%/yr for IEF. At a correlation of -0.08, they often move in opposite directions. VDEM.L charges 0.22%/yr vs 0.15%/yr for IEF.
Performance
VDEM.L vs. IEF - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VDEM.L achieves a 11.72% return, which is significantly higher than IEF's -0.66% return. Over the past 10 years, VDEM.L has outperformed IEF with an annualized return of 8.89%, while IEF has yielded a comparatively lower 0.63% annualized return.
VDEM.L
- 1D
- -1.46%
- 1M
- 2.40%
- YTD
- 11.72%
- 6M
- 13.69%
- 1Y
- 31.47%
- 3Y*
- 18.16%
- 5Y*
- 5.12%
- 10Y*
- 8.89%
IEF
- 1D
- -0.25%
- 1M
- -0.08%
- YTD
- -0.66%
- 6M
- -1.17%
- 1Y
- 4.06%
- 3Y*
- 2.47%
- 5Y*
- -1.14%
- 10Y*
- 0.63%
VDEM.L vs. IEF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VDEM.L Vanguard FTSE Emerging Markets UCITS | 11.72% | 25.92% | 12.28% | 7.28% | -17.20% | -0.89% | 14.86% | 18.83% | -12.55% | 31.59% |
IEF iShares 7-10 Year Treasury Bond ETF | -0.66% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
Correlation
The correlation between VDEM.L and IEF is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.17 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.11 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.04 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.05 |
Correlation (All Time) Calculated using the full available price history since May 24, 2012 | -0.08 |
The correlation between VDEM.L and IEF shifts across timeframes, from -0.08 (all time) to 0.17 (1 year), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VDEM.L vs. IEF — Risk / Return Rank
VDEM.L
IEF
VDEM.L vs. IEF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets UCITS (VDEM.L) and iShares 7-10 Year Treasury Bond ETF (IEF). 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.
| VDEM.L | IEF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.09 | ||
| Sortino ratioReturn per unit of downside risk | +1.46 | ||
| Omega ratioGain probability vs. loss probability | 1.35 | 1.15 | +0.20 |
| Calmar ratioReturn relative to maximum drawdown | 2.94 | 1.00 | +1.94 |
| Martin ratioReturn relative to average drawdown | 10.07 | 2.98 | +7.10 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| VDEM.L | IEF | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.94 | 0.85 | +1.09 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.29 | -0.15 | +0.44 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.47 | 0.10 | +0.38 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.35 | 0.50 | -0.15 |
Drawdowns
VDEM.L vs. IEF - Drawdown Comparison
The maximum VDEM.L drawdown since its inception was -36.63%, which is greater than IEF's maximum drawdown of -23.93%. Use the drawdown chart below to compare losses from any high point for VDEM.L and IEF.
Loading charts...
Drawdown Indicators
| VDEM.L | IEF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -36.63% | -23.93% | -12.70% |
Max Drawdown (1Y)Largest decline over 1 year | -10.65% | -4.07% | -6.58% |
Max Drawdown (3Y)Largest decline over 3 years | -15.97% | -7.74% | -8.23% |
Max Drawdown (5Y)Largest decline over 5 years | -33.19% | -21.40% | -11.79% |
Max Drawdown (10Y)Largest decline over 10 years | -36.35% | -23.93% | -12.42% |
Current DrawdownCurrent decline from peak | -1.46% | -11.35% | +9.89% |
Average DrawdownAverage peak-to-trough decline | -12.68% | -5.34% | -7.34% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.12% | 1.37% | +1.75% |
Volatility
VDEM.L vs. IEF - Volatility Comparison
Vanguard FTSE Emerging Markets UCITS (VDEM.L) has a higher volatility of 6.21% compared to iShares 7-10 Year Treasury Bond ETF (IEF) at 1.54%. This indicates that VDEM.L's price experiences larger fluctuations and is considered to be riskier than IEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VDEM.L | IEF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.21% | 1.54% | +4.67% |
Volatility (6M)Calculated over the trailing 6-month period | 13.30% | 3.34% | +9.96% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.14% | 4.78% | +11.36% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.80% | 7.71% | +10.09% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.75% | 6.62% | +12.13% |
VDEM.L vs. IEF - Expense Ratio Comparison
VDEM.L has a 0.22% expense ratio, which is higher than IEF's 0.15% 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
VDEM.L vs. IEF - Dividend Comparison
VDEM.L's dividend yield for the trailing twelve months is around 2.03%, less than IEF's 3.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.90% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
VDEM.L Vanguard FTSE Emerging Markets UCITS | 2.03% | 2.34% | 2.38% | 2.58% | 3.27% | 2.30% | 1.81% | 2.33% | 2.82% | 2.16% | 2.40% | 2.94% |
Frequently Asked Questions
VDEM.L and IEF have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, IEF is cheaper at 0.15% per year. The better choice depends on whether you care most about return, fees, risk, or income.
IEF is cheaper with a 0.15% expense ratio, compared with 0.22% for VDEM.L.
VDEM.L is categorized as Emerging Markets Equities, while IEF is Government Bonds. VDEM.L tracks FTSE Emerging Index, while IEF tracks ICE U.S. Treasury 7-10 Year Bond Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.22% for VDEM.L and 0.15% for IEF.
Find the right allocation for VDEM.L and IEF
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer