VEMRX vs. SPY

Last updated Aug 2, 2026

VEMRX (Vanguard Emerging Markets Index Fund Institutional Plus Shares) and SPY (State Street SPDR S&P 500 ETF) are both funds - VEMRX is a Emerging Markets Equities fund managed by Vanguard, while SPY is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, VEMRX returned 7.63%/yr vs 15.07%/yr for SPY. Their 0.69 correlation means they have sometimes moved together and sometimes differently. VEMRX charges 0.08%/yr vs 0.09%/yr for SPY.

Performance

VEMRX vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Emerging Markets Index Fund Institutional Plus Shares (VEMRX) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEMRX achieves a 7.83% return, which is significantly lower than SPY's 10.13% return. Over the past 10 years, VEMRX has underperformed SPY with an annualized return of 7.63%, while SPY has yielded a comparatively higher 15.07% annualized return.

VEMRX

• 1D: 1.69%
• 1M: -1.72%
• 6M: 2.69%
• YTD: 7.83%
• 1Y: 20.01%
• 3Y*: 13.74%
• 5Y*: 5.83%
• 10Y*: 7.63%
• ALL TIME*: 4.08%

SPY

• 1D: 0.72%
• 1M: 0.30%
• 6M: 8.53%
• YTD: 10.13%
• 1Y: 21.49%
• 3Y*: 19.32%
• 5Y*: 12.76%
• 10Y*: 15.07%
• ALL TIME*: 10.79%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
SPY State Street SPDR S&P 500 ETF	$37.27B	$35.99B	$39.23B
VEMRX Vanguard Emerging Markets Index Fund Institutional Plus Shares	$0.00	$0.00	$0.00

VEMRX vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEMRX Vanguard Emerging Markets Index Fund Institutional Plus Shares	7.83%	24.84%	11.40%	8.88%	-17.74%	0.92%	15.29%	20.39%	-14.55%	31.44%
SPY State Street SPDR S&P 500 ETF	10.13%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between VEMRX and SPY is 0.73, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.73
Correlation (3Y) Balances recent behavior with more history.	0.63
Correlation (5Y) Shows whether the relationship held over a longer period.	0.62
Correlation (10Y) Provides a long-term view across more market conditions.	0.66
Correlation (All Time) Calculated using the full available price history since Dec 13, 2010	0.69

The correlation between VEMRX and SPY shifts across timeframes, from 0.62 (5 years) to 0.73 (1 year), reflecting how their relationship changes across market environments.

VEMRX vs. SPY - Sectors Allocation Comparison

Sectors	VEMRX	SPY
Technology	34.2%	36.9%
Financial Services	19.4%	12.5%
Consumer Cyclical	9.1%	8.9%
Industrials	7.9%	7.6%
Basic Materials	7.2%	1.9%
Communication Services	6.6%	9.7%
Energy	3.8%	3.4%
Healthcare	3.7%	9.4%
Consumer Defensive	3.3%	4.8%
Utilities	2.8%	2.6%
Real Estate	2.0%	2.0%

Return for Risk

VEMRX vs. SPY — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VEMRX

VEMRX Risk / Return Rank: 39
VEMRX Sharpe Ratio Rank: 39
VEMRX Sortino Ratio Rank: 38
VEMRX Omega Ratio Rank: 38
VEMRX Calmar Ratio Rank: 43
VEMRX Martin Ratio Rank: 39

SPY

SPY Risk / Return Rank: 67
SPY Sharpe Ratio Rank: 67
SPY Sortino Ratio Rank: 64
SPY Omega Ratio Rank: 65
SPY Calmar Ratio Rank: 64
SPY Martin Ratio Rank: 76

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VEMRX vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Emerging Markets Index Fund Institutional Plus Shares (VEMRX) and State Street SPDR S&P 500 ETF (SPY). 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.

	VEMRX	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.15	1.52	-0.37
Sortino ratio: Return per unit of downside risk	1.64	2.11	-0.47
Omega ratio: Gain probability vs. loss probability	1.21	1.27	-0.06
Calmar ratio: Return relative to maximum drawdown	1.66	2.20	-0.54
Martin ratio: Return relative to average drawdown	5.54	9.40	-3.86

VEMRX vs. SPY - Sharpe Ratio Comparison

The current VEMRX Sharpe Ratio is 1.15, which is comparable to the SPY Sharpe Ratio of 1.52. The chart below compares the historical Sharpe Ratios of VEMRX and SPY, 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

VEMRX vs. SPY - Drawdown Comparison

The maximum VEMRX drawdown since its inception was -36.01%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for VEMRX and SPY.

Drawdown Indicators

	VEMRX	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-36.01%	-55.19%	+19.18%
Max Drawdown (1Y) Largest decline over 1 year	-11.04%	-8.88%	-2.16%
Max Drawdown (3Y) Largest decline over 3 years	-15.74%	-18.76%	+3.02%
Max Drawdown (5Y) Largest decline over 5 years	-30.65%	-24.50%	-6.15%
Max Drawdown (10Y) Largest decline over 10 years	-36.01%	-33.72%	-2.29%
Current Drawdown Current decline from peak	-5.42%	-1.40%	-4.02%
Average Drawdown Average peak-to-trough decline	-12.73%	-9.01%	-3.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.30%	2.08%	+1.22%

Volatility

VEMRX vs. SPY - Volatility Comparison

Vanguard Emerging Markets Index Fund Institutional Plus Shares (VEMRX) has a higher volatility of 5.22% compared to State Street SPDR S&P 500 ETF (SPY) at 3.58%. This indicates that VEMRX's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEMRX	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.22%	3.58%	+1.64%
Volatility (6M) Calculated over the trailing 6-month period	13.81%	10.14%	+3.67%
Volatility (1Y) Calculated over the trailing 1-year period	15.99%	12.89%	+3.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.59%	17.18%	-1.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.50%	17.95%	-1.45%

VEMRX vs. SPY - Expense Ratio Comparison

VEMRX has a 0.08% expense ratio, which is lower than SPY's 0.09% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VEMRX vs. SPY - Dividend Comparison

VEMRX's dividend yield for the trailing twelve months is around 2.40%, more than SPY's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	1.01%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
VEMRX Vanguard Emerging Markets Index Fund Institutional Plus Shares	2.40%	2.79%	3.19%	3.53%	4.11%	2.63%	1.92%	3.26%	2.92%	2.35%	2.56%	3.31%

Frequently Asked Questions

Can I hold both VEMRX and SPY in my portfolio?

VEMRX and SPY 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 is riskier, VEMRX or SPY?

VEMRX has higher volatility (5.22%) compared to SPY (3.58%). In terms of maximum drawdown, VEMRX dropped -36.01% vs SPY's -55.19%.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.52 vs 1.15), 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.