VEMRX vs. VESIX

Last updated Jun 9, 2026

VEMRX (Vanguard Emerging Markets Index Fund Institutional Plus Shares) and VESIX (Vanguard European Stock Index Fund Institutional Shares) are both mutual funds - VEMRX is a Emerging Markets Equities fund managed by Vanguard, while VESIX is a Europe Equities fund managed by Vanguard. Over the past 10 years, VEMRX returned 8.34%/yr vs 9.03%/yr for VESIX. A 0.71 correlation means they provide meaningful diversification when combined. Both charge a 0.08% expense ratio.

Performance

VEMRX vs. VESIX - 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 Vanguard European Stock Index Fund Institutional Shares (VESIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEMRX achieves a 8.65% return, which is significantly higher than VESIX's 4.82% return. Over the past 10 years, VEMRX has underperformed VESIX with an annualized return of 8.34%, while VESIX has yielded a comparatively higher 9.03% annualized return.

VEMRX

• 1D: -3.38%
• 1M: -3.58%
• YTD: 8.65%
• 6M: 9.81%
• 1Y: 24.46%
• 3Y*: 16.55%
• 5Y*: 4.51%
• 10Y*: 8.34%

VESIX

• 1D: -2.04%
• 1M: -1.00%
• YTD: 4.82%
• 6M: 8.07%
• 1Y: 15.81%
• 3Y*: 16.13%
• 5Y*: 8.06%
• 10Y*: 9.03%

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

VEMRX vs. VESIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEMRX Vanguard Emerging Markets Index Fund Institutional Plus Shares	8.65%	24.84%	11.40%	8.88%	-17.74%	0.92%	15.29%	20.39%	-14.55%	31.44%
VESIX Vanguard European Stock Index Fund Institutional Shares	4.82%	35.43%	2.02%	20.03%	-16.07%	16.31%	6.46%	24.24%	-14.78%	27.05%

Correlation

The correlation between VEMRX and VESIX is 0.64, 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	0.64
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Dec 14, 2010	0.71

The correlation between VEMRX and VESIX has been stable across timeframes, ranging from 0.64 to 0.71 - a consistent structural relationship.

Return for Risk

VEMRX vs. VESIX — Risk / Return Rank

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

VEMRX

VEMRX Risk / Return Rank: 38
VEMRX Sharpe Ratio Rank: 38
VEMRX Sortino Ratio Rank: 36
VEMRX Omega Ratio Rank: 38
VEMRX Calmar Ratio Rank: 40
VEMRX Martin Ratio Rank: 41

VESIX

VESIX Risk / Return Rank: 18
VESIX Sharpe Ratio Rank: 17
VESIX Sortino Ratio Rank: 17
VESIX Omega Ratio Rank: 16
VESIX Calmar Ratio Rank: 17
VESIX Martin Ratio Rank: 22

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.

VEMRX vs. VESIX - 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 Vanguard European Stock Index Fund Institutional Shares (VESIX). 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.

	VEMRX	VESIX	Difference
Sharpe ratio: Return per unit of total volatility	1.69	1.06	+0.64
Sortino ratio: Return per unit of downside risk	2.35	1.56	+0.79
Omega ratio: Gain probability vs. loss probability	1.31	1.19	+0.12
Calmar ratio: Return relative to maximum drawdown	2.27	1.36	+0.91
Martin ratio: Return relative to average drawdown	8.40	5.01	+3.39
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEMRX vs. VESIX - Sharpe Ratio Comparison

The current VEMRX Sharpe Ratio is 1.69, which is higher than the VESIX Sharpe Ratio of 1.06. The chart below compares the historical Sharpe Ratios of VEMRX and VESIX, 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

	VEMRX	VESIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.69	1.06	+0.64
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.29	0.46	-0.17
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.51	0.50	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	0.26	-0.01

Drawdowns

VEMRX vs. VESIX - Drawdown Comparison

The maximum VEMRX drawdown since its inception was -36.01%, smaller than the maximum VESIX drawdown of -63.25%. Use the drawdown chart below to compare losses from any high point for VEMRX and VESIX.

Drawdown Indicators

	VEMRX	VESIX	Difference
Max Drawdown Largest peak-to-trough decline	-36.01%	-63.25%	+27.24%
Max Drawdown (1Y) Largest decline over 1 year	-11.04%	-11.96%	+0.92%
Max Drawdown (3Y) Largest decline over 3 years	-15.74%	-13.94%	-1.80%
Max Drawdown (5Y) Largest decline over 5 years	-32.49%	-32.68%	+0.19%
Max Drawdown (10Y) Largest decline over 10 years	-36.01%	-36.85%	+0.84%
Current Drawdown Current decline from peak	-4.70%	-3.24%	-1.46%
Average Drawdown Average peak-to-trough decline	-12.82%	-15.22%	+2.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.97%	3.24%	-0.27%

Volatility

VEMRX vs. VESIX - Volatility Comparison

Vanguard Emerging Markets Index Fund Institutional Plus Shares (VEMRX) has a higher volatility of 5.78% compared to Vanguard European Stock Index Fund Institutional Shares (VESIX) at 5.11%. This indicates that VEMRX's price experiences larger fluctuations and is considered to be riskier than VESIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEMRX	VESIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.78%	5.11%	+0.67%
Volatility (6M) Calculated over the trailing 6-month period	12.40%	12.78%	-0.38%
Volatility (1Y) Calculated over the trailing 1-year period	14.77%	15.39%	-0.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.45%	17.41%	-1.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.49%	18.25%	-1.76%

VEMRX vs. VESIX - Expense Ratio Comparison

Both VEMRX and VESIX have an expense ratio of 0.08%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VEMRX vs. VESIX - Dividend Comparison

VEMRX's dividend yield for the trailing twelve months is around 2.49%, less than VESIX's 2.84% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEMRX Vanguard Emerging Markets Index Fund Institutional Plus Shares	2.49%	2.79%	3.19%	3.53%	4.11%	2.63%	1.92%	3.26%	2.92%	2.35%	2.56%	3.31%
VESIX Vanguard European Stock Index Fund Institutional Shares	2.84%	2.86%	3.60%	3.15%	3.25%	3.04%	2.10%	3.28%	3.95%	2.72%	3.54%	3.27%

Frequently Asked Questions

Can I hold both VEMRX and VESIX in my portfolio?

VEMRX and VESIX have a correlation of 0.64, 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 VESIX?

VEMRX has higher volatility (5.78%) compared to VESIX (5.11%). In terms of maximum drawdown, VEMRX dropped -36.01% vs VESIX's -63.25%.

Which has better risk-adjusted returns?

VEMRX currently has the higher Sharpe Ratio (1.69 vs 1.06), 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.