VEMBX vs. VGIVX

Last updated Jun 24, 2026

VEMBX (Vanguard Emerging Markets Bond Fund Investor Shares) and VGIVX (Vanguard Emerging Markets Government Bond Index Fund Institutional Shares) are both mutual funds - VEMBX is a Emerging Markets Bonds fund managed by Vanguard, while VGIVX is a Government Bonds fund managed by Vanguard. Over the past 5 years, VEMBX returned 4.30%/yr vs 2.29%/yr for VGIVX. Their correlation of 0.94 suggests significant overlap in exposure. VEMBX charges 0.55%/yr vs 0.18%/yr for VGIVX.

Performance

VEMBX vs. VGIVX - 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 Emerging Markets Government Bond Index Fund Institutional Shares (VGIVX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEMBX achieves a 3.26% return, which is significantly higher than VGIVX's 2.03% return.

VEMBX

• 1D: -0.19%
• 1M: 1.73%
• YTD: 3.26%
• 6M: 3.46%
• 1Y: 12.76%
• 3Y*: 11.19%
• 5Y*: 4.30%
• 10Y*: —

VGIVX

• 1D: -0.22%
• 1M: 1.84%
• YTD: 2.03%
• 6M: 2.18%
• 1Y: 10.61%
• 3Y*: 9.38%
• 5Y*: 2.29%
• 10Y*: 3.58%

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

VEMBX vs. VGIVX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEMBX Vanguard Emerging Markets Bond Fund Investor Shares	3.26%	14.32%	7.38%	13.66%	-13.18%	-1.53%	14.99%	17.72%	-0.89%	13.12%
VGIVX Vanguard Emerging Markets Government Bond Index Fund Institutional Shares	2.03%	13.05%	6.31%	10.48%	-16.72%	-2.41%	5.83%	14.03%	-2.72%	8.47%

Correlation

The correlation between VEMBX and VGIVX is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since Jan 3, 2017	0.94

The correlation between VEMBX and VGIVX has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

Return for Risk

VEMBX vs. VGIVX — Risk / Return Rank

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

VEMBX

VEMBX Risk / Return Rank: 89
VEMBX Sharpe Ratio Rank: 94
VEMBX Sortino Ratio Rank: 96
VEMBX Omega Ratio Rank: 90
VEMBX Calmar Ratio Rank: 81
VEMBX Martin Ratio Rank: 87

VGIVX

VGIVX Risk / Return Rank: 76
VGIVX Sharpe Ratio Rank: 87
VGIVX Sortino Ratio Rank: 91
VGIVX Omega Ratio Rank: 84
VGIVX Calmar Ratio Rank: 57
VGIVX Martin Ratio Rank: 59

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. VGIVX - 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 Emerging Markets Government Bond Index Fund Institutional Shares (VGIVX). 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	VGIVX	Difference
Sharpe ratio: Return per unit of total volatility	2.99	2.62	+0.37
Sortino ratio: Return per unit of downside risk	4.87	4.16	+0.71
Omega ratio: Gain probability vs. loss probability	1.61	1.53	+0.09
Calmar ratio: Return relative to maximum drawdown	3.46	2.77	+0.69
Martin ratio: Return relative to average drawdown	15.27	11.08	+4.19

VEMBX vs. VGIVX - Sharpe Ratio Comparison

The current VEMBX Sharpe Ratio is 2.99, which is comparable to the VGIVX Sharpe Ratio of 2.62. The chart below compares the historical Sharpe Ratios of VEMBX and VGIVX, 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. VGIVX - Drawdown Comparison

The maximum VEMBX drawdown since its inception was -24.36%, smaller than the maximum VGIVX drawdown of -26.79%. Use the drawdown chart below to compare losses from any high point for VEMBX and VGIVX.

Drawdown Indicators

	VEMBX	VGIVX	Difference
Max Drawdown Largest peak-to-trough decline	-24.36%	-26.79%	+2.43%
Max Drawdown (1Y) Largest decline over 1 year	-3.77%	-3.93%	+0.16%
Max Drawdown (3Y) Largest decline over 3 years	-5.56%	-7.14%	+1.58%
Max Drawdown (5Y) Largest decline over 5 years	-24.36%	-26.79%	+2.43%
Max Drawdown (10Y) Largest decline over 10 years	—	-26.79%	—
Current Drawdown Current decline from peak	-0.28%	-0.33%	+0.05%
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%	0.98%	-0.13%

Volatility

VEMBX vs. VGIVX - Volatility Comparison

The current volatility for Vanguard Emerging Markets Bond Fund Investor Shares (VEMBX) is 1.11%, while Vanguard Emerging Markets Government Bond Index Fund Institutional Shares (VGIVX) has a volatility of 1.20%. This indicates that VEMBX experiences smaller price fluctuations and is considered to be less risky than VGIVX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEMBX	VGIVX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.11%	1.20%	-0.09%
Volatility (6M) Calculated over the trailing 6-month period	3.64%	3.44%	+0.20%
Volatility (1Y) Calculated over the trailing 1-year period	4.37%	4.17%	+0.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.36%	6.31%	+0.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.35%	6.36%	-0.01%

VEMBX vs. VGIVX - Expense Ratio Comparison

VEMBX has a 0.55% expense ratio, which is higher than VGIVX's 0.18% expense ratio.

Dividends

VEMBX vs. VGIVX - Dividend Comparison

VEMBX's dividend yield for the trailing twelve months is around 5.98%, more than VGIVX's 5.86% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEMBX Vanguard Emerging Markets Bond Fund Investor Shares	5.98%	6.20%	6.86%	7.06%	5.43%	5.00%	4.50%	6.27%	4.81%	6.50%	0.00%	0.00%
VGIVX Vanguard Emerging Markets Government Bond Index Fund Institutional Shares	5.86%	5.95%	6.58%	5.53%	5.32%	3.53%	4.21%	4.62%	4.62%	4.67%	4.76%	4.55%

Frequently Asked Questions

Can I hold both VEMBX and VGIVX in my portfolio?

With a correlation of 0.96, VEMBX and VGIVX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VEMBX or VGIVX?

VGIVX has higher volatility (1.20%) compared to VEMBX (1.11%). In terms of maximum drawdown, VEMBX dropped -24.36% vs VGIVX's -26.79%.

Which has better risk-adjusted returns?

VEMBX currently has the higher Sharpe Ratio (2.99 vs 2.62), 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.