VEMBX vs. PEBIX

Last updated Jun 23, 2026

VEMBX (Vanguard Emerging Markets Bond Fund Investor Shares) and PEBIX (PIMCO Emerging Markets Bond Fund) are both Emerging Markets Bonds funds. Over the past 5 years, VEMBX returned 4.28%/yr vs 3.08%/yr for PEBIX. Their correlation of 0.88 suggests significant overlap in exposure. VEMBX charges 0.55%/yr vs 0.83%/yr for PEBIX.

Performance

VEMBX vs. PEBIX - Performance Comparison

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

Returns By Period

In the year-to-date period, VEMBX achieves a 3.45% return, which is significantly higher than PEBIX's 3.11% return.

VEMBX

• 1D: 0.09%
• 1M: 1.92%
• YTD: 3.45%
• 6M: 3.65%
• 1Y: 13.19%
• 3Y*: 11.37%
• 5Y*: 4.28%
• 10Y*: —

PEBIX

• 1D: 0.11%
• 1M: 2.21%
• YTD: 3.11%
• 6M: 3.68%
• 1Y: 14.27%
• 3Y*: 11.54%
• 5Y*: 3.08%
• 10Y*: 4.62%

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

VEMBX vs. PEBIX - 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%
PEBIX PIMCO Emerging Markets Bond Fund	3.11%	15.48%	7.83%	11.48%	-17.48%	-2.00%	6.56%	14.91%	-4.17%	10.60%

Correlation

The correlation between VEMBX and PEBIX is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (All Time) Calculated using the full available price history since Jan 3, 2017	0.88

The correlation between VEMBX and PEBIX has been stable across timeframes, ranging from 0.87 to 0.90 - a consistent structural relationship.

Return for Risk

VEMBX vs. PEBIX — Risk / Return Rank

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

VEMBX

VEMBX Risk / Return Rank: 90
VEMBX Sharpe Ratio Rank: 94
VEMBX Sortino Ratio Rank: 96
VEMBX Omega Ratio Rank: 90
VEMBX Calmar Ratio Rank: 80
VEMBX Martin Ratio Rank: 87

PEBIX

PEBIX Risk / Return Rank: 89
PEBIX Sharpe Ratio Rank: 95
PEBIX Sortino Ratio Rank: 96
PEBIX Omega Ratio Rank: 90
PEBIX Calmar Ratio Rank: 79
PEBIX Martin Ratio Rank: 84

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. PEBIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Emerging Markets Bond Fund Investor Shares (VEMBX) and PIMCO Emerging Markets Bond Fund (PEBIX). 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	PEBIX	Difference
Sharpe ratio: Return per unit of total volatility	3.02	3.03	-0.02
Sortino ratio: Return per unit of downside risk	4.92	4.97	-0.06
Omega ratio: Gain probability vs. loss probability	1.62	1.62	0.00
Calmar ratio: Return relative to maximum drawdown	3.49	3.40	+0.09
Martin ratio: Return relative to average drawdown	15.39	14.52	+0.87

VEMBX vs. PEBIX - Sharpe Ratio Comparison

The current VEMBX Sharpe Ratio is 3.02, which is comparable to the PEBIX Sharpe Ratio of 3.03. The chart below compares the historical Sharpe Ratios of VEMBX and PEBIX, 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

VEMBX vs. PEBIX - Drawdown Comparison

The maximum VEMBX drawdown since its inception was -24.36%, smaller than the maximum PEBIX drawdown of -35.49%. Use the drawdown chart below to compare losses from any high point for VEMBX and PEBIX.

Drawdown Indicators

	VEMBX	PEBIX	Difference
Max Drawdown Largest peak-to-trough decline	-24.36%	-35.49%	+11.13%
Max Drawdown (1Y) Largest decline over 1 year	-3.77%	-4.23%	+0.46%
Max Drawdown (3Y) Largest decline over 3 years	-5.56%	-6.31%	+0.75%
Max Drawdown (5Y) Largest decline over 5 years	-24.36%	-28.10%	+3.74%
Max Drawdown (10Y) Largest decline over 10 years	—	-28.10%	—
Current Drawdown Current decline from peak	-0.09%	-0.33%	+0.24%
Average Drawdown Average peak-to-trough decline	-3.85%	-4.68%	+0.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.85%	0.99%	-0.14%

Volatility

VEMBX vs. PEBIX - Volatility Comparison

The current volatility for Vanguard Emerging Markets Bond Fund Investor Shares (VEMBX) is 1.10%, while PIMCO Emerging Markets Bond Fund (PEBIX) has a volatility of 1.46%. This indicates that VEMBX experiences smaller price fluctuations and is considered to be less risky than PEBIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEMBX	PEBIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.10%	1.46%	-0.36%
Volatility (6M) Calculated over the trailing 6-month period	3.63%	3.86%	-0.23%
Volatility (1Y) Calculated over the trailing 1-year period	4.35%	4.74%	-0.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.36%	6.37%	-0.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.35%	6.38%	-0.03%

VEMBX vs. PEBIX - Expense Ratio Comparison

VEMBX has a 0.55% expense ratio, which is lower than PEBIX's 0.83% expense ratio.

Dividends

VEMBX vs. PEBIX - Dividend Comparison

VEMBX's dividend yield for the trailing twelve months is around 5.96%, less than PEBIX's 6.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PEBIX PIMCO Emerging Markets Bond Fund	6.41%	6.68%	6.81%	5.36%	6.21%	4.41%	4.23%	4.47%	4.41%	5.10%	5.57%	6.08%
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

Can I hold both VEMBX and PEBIX in my portfolio?

VEMBX and PEBIX have a correlation of 0.90, 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 PEBIX?

PEBIX has higher volatility (1.46%) compared to VEMBX (1.10%). In terms of maximum drawdown, VEMBX dropped -24.36% vs PEBIX's -35.49%.

Which has better risk-adjusted returns?

PEBIX currently has the higher Sharpe Ratio (3.03 vs 3.02), 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.