VEMA.L vs. XUEM.L

Last updated Jun 5, 2026

VEMA.L (Vanguard USD Emerging Markets Government Bond UCITS ETF Accumulating) and XUEM.L (Xtrackers USD Emerging Markets Bond UCITS ETF 2D) are both Emerging Markets Bonds funds tracking the JPM EMBI Global Diversified TR USD, from Vanguard and Xtrackers respectively. Both are passively managed. Over the past 5 years, VEMA.L returned 3.45%/yr vs 3.01%/yr for XUEM.L. A 0.78 correlation means they provide meaningful diversification when combined. Both charge a 0.25% expense ratio.

Performance

VEMA.L vs. XUEM.L - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in Vanguard USD Emerging Markets Government Bond UCITS ETF Accumulating (VEMA.L) and Xtrackers USD Emerging Markets Bond UCITS ETF 2D (XUEM.L). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

VEMA.L is traded in GBP, while XUEM.L is traded in USD. To make them comparable, the XUEM.L values have been converted to GBP using the latest available exchange rates.

Returns By Period

In the year-to-date period, VEMA.L achieves a 1.66% return, which is significantly lower than XUEM.L's 3.02% return.

VEMA.L

• 1D: 0.22%
• 1M: 1.94%
• YTD: 1.66%
• 6M: 1.43%
• 1Y: 10.75%
• 3Y*: 6.06%
• 5Y*: 3.45%
• 10Y*: —

XUEM.L

• 1D: 0.16%
• 1M: 1.93%
• YTD: 3.02%
• 6M: 2.48%
• 1Y: 13.62%
• 3Y*: 7.48%
• 5Y*: 3.01%
• 10Y*: —

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

VEMA.L vs. XUEM.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
VEMA.L Vanguard USD Emerging Markets Government Bond UCITS ETF Accumulating	1.66%	4.15%	8.11%	3.45%	-5.29%	-0.35%	2.49%	8.03%
XUEM.L Xtrackers USD Emerging Markets Bond UCITS ETF 2D	3.02%	5.49%	7.93%	5.34%	-9.83%	-1.45%	0.05%	8.43%

Correlation

The correlation between VEMA.L and XUEM.L is 0.73, 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	0.73
Correlation (3Y) Calculated over the trailing 3-year period	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (All Time) Calculated using the full available price history since Feb 22, 2019	0.78

The correlation between VEMA.L and XUEM.L has been stable across timeframes, ranging from 0.73 to 0.78 - a consistent structural relationship.

Return for Risk

VEMA.L vs. XUEM.L — Risk / Return Rank

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

VEMA.L

VEMA.L Risk / Return Rank: 52
VEMA.L Sharpe Ratio Rank: 55
VEMA.L Sortino Ratio Rank: 59
VEMA.L Omega Ratio Rank: 54
VEMA.L Calmar Ratio Rank: 50
VEMA.L Martin Ratio Rank: 43

XUEM.L

XUEM.L Risk / Return Rank: 79
XUEM.L Sharpe Ratio Rank: 79
XUEM.L Sortino Ratio Rank: 89
XUEM.L Omega Ratio Rank: 84
XUEM.L Calmar Ratio Rank: 66
XUEM.L Martin Ratio Rank: 74

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.

VEMA.L vs. XUEM.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard USD Emerging Markets Government Bond UCITS ETF Accumulating (VEMA.L) and Xtrackers USD Emerging Markets Bond UCITS ETF 2D (XUEM.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.

	VEMA.L	XUEM.L	Difference
Sharpe ratio: Return per unit of total volatility	1.83	2.04	-0.21
Sortino ratio: Return per unit of downside risk	2.76	2.88	-0.12
Omega ratio: Gain probability vs. loss probability	1.33	1.37	-0.04
Calmar ratio: Return relative to maximum drawdown	2.44	3.41	-0.97
Martin ratio: Return relative to average drawdown	6.67	11.14	-4.47
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEMA.L vs. XUEM.L - Sharpe Ratio Comparison

The current VEMA.L Sharpe Ratio is 1.83, which is comparable to the XUEM.L Sharpe Ratio of 2.04. The chart below compares the historical Sharpe Ratios of VEMA.L and XUEM.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

	VEMA.L	XUEM.L	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.83	2.04	-0.21
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.42	0.31	+0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.24	+0.07

Drawdowns

VEMA.L vs. XUEM.L - Drawdown Comparison

The maximum VEMA.L drawdown since its inception was -14.59%, smaller than the maximum XUEM.L drawdown of -22.10%. Use the drawdown chart below to compare losses from any high point for VEMA.L and XUEM.L.

Drawdown Indicators

	VEMA.L	XUEM.L	Difference
Max Drawdown Largest peak-to-trough decline	-14.59%	-22.10%	+7.51%
Max Drawdown (1Y) Largest decline over 1 year	-4.39%	-3.98%	-0.41%
Max Drawdown (3Y) Largest decline over 3 years	-8.38%	-9.91%	+1.53%
Max Drawdown (5Y) Largest decline over 5 years	-11.41%	-16.14%	+4.73%
Current Drawdown Current decline from peak	-0.45%	0.00%	-0.45%
Average Drawdown Average peak-to-trough decline	-6.28%	-9.79%	+3.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.61%	1.22%	+0.39%

Volatility

VEMA.L vs. XUEM.L - Volatility Comparison

The current volatility for Vanguard USD Emerging Markets Government Bond UCITS ETF Accumulating (VEMA.L) is 1.47%, while Xtrackers USD Emerging Markets Bond UCITS ETF 2D (XUEM.L) has a volatility of 1.89%. This indicates that VEMA.L experiences smaller price fluctuations and is considered to be less risky than XUEM.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEMA.L	XUEM.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.47%	1.89%	-0.42%
Volatility (6M) Calculated over the trailing 6-month period	4.07%	5.34%	-1.27%
Volatility (1Y) Calculated over the trailing 1-year period	5.85%	6.66%	-0.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.14%	9.62%	-1.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.49%	11.56%	-2.07%

VEMA.L vs. XUEM.L - Expense Ratio Comparison

Both VEMA.L and XUEM.L have an expense ratio of 0.25%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VEMA.L vs. XUEM.L - Dividend Comparison

VEMA.L has not paid dividends to shareholders, while XUEM.L's dividend yield for the trailing twelve months is around 5.21%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
VEMA.L Vanguard USD Emerging Markets Government Bond UCITS ETF Accumulating	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XUEM.L Xtrackers USD Emerging Markets Bond UCITS ETF 2D	5.21%	5.30%	6.79%	5.27%	5.92%	8.49%	4.18%	0.61%

Frequently Asked Questions

Can I hold both VEMA.L and XUEM.L in my portfolio?

VEMA.L and XUEM.L have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VEMA.L or XUEM.L?

Both ETFs have the same 0.25% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VEMA.L or XUEM.L?

VEMA.L and XUEM.L have the same expense ratio: 0.25% per year.

What is the main difference between VEMA.L and XUEM.L?

Both ETFs track JPM EMBI Global Diversified TR USD. They also come from different issuers: Vanguard and Xtrackers.