VEMBX vs. BNDX

Last updated Jun 3, 2026

VEMBX (Vanguard Emerging Markets Bond Fund Investor Shares) and BNDX (Vanguard Total International Bond ETF) are both funds - VEMBX is a Emerging Markets Bonds fund managed by Vanguard, while BNDX is a Global Bonds fund tracking the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged). Over the past 5 years, VEMBX returned 4.23%/yr vs 0.45%/yr for BNDX. At a 0.43 correlation, their price movements are largely independent. VEMBX charges 0.55%/yr vs 0.07%/yr for BNDX.

Performance

VEMBX vs. BNDX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Emerging Markets Bond Fund Investor Shares (VEMBX) and Vanguard Total International Bond ETF (BNDX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEMBX achieves a 2.59% return, which is significantly higher than BNDX's 0.89% return.

VEMBX

• 1D: -0.06%
• 1M: 0.69%
• YTD: 2.59%
• 6M: 3.38%
• 1Y: 13.59%
• 3Y*: 11.61%
• 5Y*: 4.23%
• 10Y*: —

BNDX

• 1D: 0.19%
• 1M: 0.72%
• YTD: 0.89%
• 6M: 0.65%
• 1Y: 2.18%
• 3Y*: 4.16%
• 5Y*: 0.45%
• 10Y*: 1.72%

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

VEMBX vs. BNDX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEMBX Vanguard Emerging Markets Bond Fund Investor Shares	2.59%	14.32%	7.38%	13.66%	-13.18%	-1.53%	14.99%	17.72%	-0.89%	13.12%
BNDX Vanguard Total International Bond ETF	0.89%	2.86%	3.57%	8.77%	-12.76%	-2.29%	4.65%	7.87%	2.81%	2.76%

Correlation

The correlation between VEMBX and BNDX is 0.57, 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	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (5Y) Calculated over the trailing 5-year period	0.57
Correlation (All Time) Calculated using the full available price history since Jan 4, 2017	0.43

The correlation between VEMBX and BNDX shifts across timeframes, from 0.43 (all time) to 0.64 (3 years), reflecting how their relationship changes across market environments.

VEMBX vs. BNDX - Sectors Allocation Comparison

Sectors	VEMBX	BNDX
Basic Materials	0.0%	-
Communication Services	-	0.0%
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.0%
Financial Services	-	0.0%
Healthcare	-	0.0%
Industrials	-	0.0%
Real Estate	-	0.0%
Technology	-	-
Utilities	-	0.0%

Return for Risk

VEMBX vs. BNDX — Risk / Return Rank

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

VEMBX

VEMBX Risk / Return Rank: 87
VEMBX Sharpe Ratio Rank: 92
VEMBX Sortino Ratio Rank: 95
VEMBX Omega Ratio Rank: 89
VEMBX Calmar Ratio Rank: 78
VEMBX Martin Ratio Rank: 83

BNDX

BNDX Risk / Return Rank: 18
BNDX Sharpe Ratio Rank: 20
BNDX Sortino Ratio Rank: 18
BNDX Omega Ratio Rank: 19
BNDX Calmar Ratio Rank: 18
BNDX Martin Ratio Rank: 18

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.

VEMBX vs. BNDX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Emerging Markets Bond Fund Investor Shares (VEMBX) and Vanguard Total International Bond ETF (BNDX). 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.

	VEMBX	BNDX	Difference
Sharpe ratio Return per unit of total volatility	3.07	0.64	+2.43
Sortino ratio Return per unit of downside risk	5.01	0.93	+4.08
Omega ratio Gain probability vs. loss probability	1.63	1.12	+0.52
Calmar ratio Return relative to maximum drawdown	3.56	0.71	+2.85
Martin ratio Return relative to average drawdown	15.75	2.05	+13.70
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEMBX vs. BNDX - Sharpe Ratio Comparison

The current VEMBX Sharpe Ratio is 3.07, which is higher than the BNDX Sharpe Ratio of 0.64. The chart below compares the historical Sharpe Ratios of VEMBX and BNDX, 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

	VEMBX	BNDX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.07	0.64	+2.43
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.67	0.09	+0.58
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.42	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.07	0.61	+0.46

Drawdowns

VEMBX vs. BNDX - Drawdown Comparison

The maximum VEMBX drawdown since its inception was -24.36%, which is greater than BNDX's maximum drawdown of -16.23%. Use the drawdown chart below to compare losses from any high point for VEMBX and BNDX.

Drawdown Indicators

	VEMBX	BNDX	Difference
Max Drawdown Largest peak-to-trough decline	-24.36%	-16.23%	-8.13%
Max Drawdown (1Y) Largest decline over 1 year	-3.77%	-2.93%	-0.84%
Max Drawdown (3Y) Largest decline over 3 years	-5.56%	-2.93%	-2.63%
Max Drawdown (5Y) Largest decline over 5 years	-24.36%	-15.86%	-8.50%
Max Drawdown (10Y) Largest decline over 10 years	—	-16.23%	—
Current Drawdown Current decline from peak	-0.06%	-1.14%	+1.08%
Average Drawdown Average peak-to-trough decline	-3.87%	-3.09%	-0.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.85%	1.02%	-0.17%

Volatility

VEMBX vs. BNDX - Volatility Comparison

The current volatility for Vanguard Emerging Markets Bond Fund Investor Shares (VEMBX) is 1.47%, while Vanguard Total International Bond ETF (BNDX) has a volatility of 1.55%. This indicates that VEMBX experiences smaller price fluctuations and is considered to be less risky than BNDX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEMBX	BNDX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.47%	1.55%	-0.08%
Volatility (6M) Calculated over the trailing 6-month period	3.57%	2.90%	+0.67%
Volatility (1Y) Calculated over the trailing 1-year period	4.38%	3.41%	+0.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.35%	4.88%	+1.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.36%	4.09%	+2.27%

VEMBX vs. BNDX - Expense Ratio Comparison

VEMBX has a 0.55% expense ratio, which is higher than BNDX's 0.07% expense ratio.

Dividends

VEMBX vs. BNDX - Dividend Comparison

VEMBX's dividend yield for the trailing twelve months is around 6.01%, more than BNDX's 4.48% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BNDX Vanguard Total International Bond ETF	4.48%	4.39%	4.18%	4.42%	1.51%	3.74%	1.11%	3.40%	3.01%	2.23%	1.89%	1.63%
VEMBX Vanguard Emerging Markets Bond Fund Investor Shares	6.01%	6.20%	6.86%	7.06%	5.43%	5.00%	4.50%	6.27%	4.81%	6.50%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VEMBX and BNDX in my portfolio?

VEMBX and BNDX have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VEMBX or BNDX?

BNDX has higher volatility (1.55%) compared to VEMBX (1.47%). In terms of maximum drawdown, VEMBX dropped -24.36% vs BNDX's -16.23%.

Which has better risk-adjusted returns?

VEMBX currently has the higher Sharpe Ratio (3.07 vs 0.64), 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.