VEMBX vs. EMB
VEMBX (Vanguard Emerging Markets Bond Fund Investor Shares) and EMB (iShares J.P. Morgan USD Emerging Markets Bond ETF) are both Emerging Markets Bonds funds. Over the past 5 years, VEMBX returned 4.28%/yr vs 1.91%/yr for EMB. A 0.74 correlation means they provide meaningful diversification when combined. VEMBX charges 0.55%/yr vs 0.39%/yr for EMB.
Performance
VEMBX vs. EMB - Performance Comparison
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Returns By Period
In the year-to-date period, VEMBX achieves a 3.45% return, which is significantly higher than EMB's 2.33% return.
VEMBX
- 1D
- 0.09%
- 1M
- 1.92%
- YTD
- 3.45%
- 6M
- 3.65%
- 1Y
- 13.19%
- 3Y*
- 11.37%
- 5Y*
- 4.28%
- 10Y*
- —
EMB
- 1D
- -0.34%
- 1M
- 1.72%
- YTD
- 2.33%
- 6M
- 2.30%
- 1Y
- 11.30%
- 3Y*
- 9.42%
- 5Y*
- 1.91%
- 10Y*
- 3.32%
VEMBX vs. EMB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VEMBX Vanguard Emerging Markets Bond Fund Investor Shares | 3.45% | 14.32% | 7.38% | 13.66% | -13.18% | -1.53% | 14.99% | 17.72% | -0.89% | 13.12% |
EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 2.33% | 13.85% | 5.54% | 10.62% | -18.63% | -2.23% | 5.42% | 15.48% | -5.47% | 10.28% |
Correlation
The correlation between VEMBX and EMB 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 | 0.82 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.79 |
Correlation (All Time) Calculated using the full available price history since Jan 3, 2017 | 0.74 |
The correlation between VEMBX and EMB has been stable across timeframes, ranging from 0.74 to 0.83 - a consistent structural relationship.
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Return for Risk
VEMBX vs. EMB — Risk / Return Rank
VEMBX
EMB
VEMBX vs. EMB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Emerging Markets Bond Fund Investor Shares (VEMBX) and iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB). 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.
| VEMBX | EMB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.02 | ||
| Sortino ratioReturn per unit of downside risk | +1.97 | ||
| Omega ratioGain probability vs. loss probability | 1.62 | 1.39 | +0.23 |
| Calmar ratioReturn relative to maximum drawdown | 3.49 | 2.52 | +0.97 |
| Martin ratioReturn relative to average drawdown | 15.39 | 10.72 | +4.67 |
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Drawdowns
VEMBX vs. EMB - Drawdown Comparison
The maximum VEMBX drawdown since its inception was -24.36%, smaller than the maximum EMB drawdown of -34.70%. Use the drawdown chart below to compare losses from any high point for VEMBX and EMB.
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Drawdown Indicators
| VEMBX | EMB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.36% | -34.70% | +10.34% |
Max Drawdown (1Y)Largest decline over 1 year | -3.77% | -4.51% | +0.74% |
Max Drawdown (3Y)Largest decline over 3 years | -5.56% | -7.95% | +2.39% |
Max Drawdown (5Y)Largest decline over 5 years | -24.36% | -28.74% | +4.38% |
Max Drawdown (10Y)Largest decline over 10 years | — | -28.74% | — |
Current DrawdownCurrent decline from peak | -0.09% | -0.34% | +0.25% |
Average DrawdownAverage peak-to-trough decline | -3.85% | -5.05% | +1.20% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.85% | 1.06% | -0.21% |
Volatility
VEMBX vs. EMB - Volatility Comparison
The current volatility for Vanguard Emerging Markets Bond Fund Investor Shares (VEMBX) is 1.10%, while iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) has a volatility of 1.77%. This indicates that VEMBX experiences smaller price fluctuations and is considered to be less risky than EMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VEMBX | EMB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.10% | 1.77% | -0.67% |
Volatility (6M)Calculated over the trailing 6-month period | 3.63% | 4.70% | -1.07% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.35% | 5.69% | -1.34% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.36% | 9.76% | -3.40% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.35% | 9.96% | -3.61% |
VEMBX vs. EMB - Expense Ratio Comparison
VEMBX has a 0.55% expense ratio, which is higher than EMB's 0.39% expense ratio.
Dividends
VEMBX vs. EMB - Dividend Comparison
VEMBX's dividend yield for the trailing twelve months is around 5.96%, more than EMB's 5.03% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 5.03% | 4.98% | 5.46% | 4.74% | 5.04% | 3.89% | 3.88% | 4.51% | 5.64% | 4.54% | 4.83% | 4.84% |
VEMBX Vanguard Emerging Markets Bond Fund Investor Shares | 5.96% | 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
VEMBX and EMB 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.
EMB has higher volatility (1.77%) compared to VEMBX (1.10%). In terms of maximum drawdown, VEMBX dropped -24.36% vs EMB's -34.70%.
VEMBX currently has the higher Sharpe Ratio (3.02 vs 2.00), 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.
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