VFEG.L vs. VEMA.L

Last updated Jun 5, 2026

VFEG.L (Vanguard FTSE Emerging Markets UCITS ETF Acc) and VEMA.L (Vanguard USD Emerging Markets Government Bond UCITS ETF Accumulating) are both exchange-traded funds - VFEG.L is a Emerging Markets Equities fund tracking the MSCI EM NR USD, while VEMA.L is a Emerging Markets Bonds fund tracking the JPM EMBI Global Diversified TR USD. Both are passively managed. Over the past 5 years, VFEG.L returned 6.12%/yr vs 3.45%/yr for VEMA.L. At a 0.27 correlation, their price movements are largely independent. VFEG.L charges 0.22%/yr vs 0.25%/yr for VEMA.L.

Performance

VFEG.L vs. VEMA.L - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in Vanguard FTSE Emerging Markets UCITS ETF Acc (VFEG.L) and Vanguard USD Emerging Markets Government Bond UCITS ETF Accumulating (VEMA.L). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFEG.L achieves a 11.73% return, which is significantly higher than VEMA.L's 1.66% return.

VFEG.L

• 1D: -0.21%
• 1M: 2.54%
• YTD: 11.73%
• 6M: 12.29%
• 1Y: 30.60%
• 3Y*: 15.18%
• 5Y*: 6.12%
• 10Y*: —

VEMA.L

• 1D: 0.22%
• 1M: 1.94%
• YTD: 1.66%
• 6M: 1.43%
• 1Y: 10.75%
• 3Y*: 6.06%
• 5Y*: 3.45%
• 10Y*: —

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

VFEG.L vs. VEMA.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
VFEG.L Vanguard FTSE Emerging Markets UCITS ETF Acc	11.73%	17.15%	14.13%	1.28%	-7.26%	-0.01%	11.28%	4.51%
VEMA.L Vanguard USD Emerging Markets Government Bond UCITS ETF Accumulating	1.66%	4.15%	8.11%	3.45%	-5.29%	-0.35%	2.49%	-4.20%

Correlation

The correlation between VFEG.L and VEMA.L is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.25
Correlation (3Y) Calculated over the trailing 3-year period	0.19
Correlation (5Y) Calculated over the trailing 5-year period	0.21
Correlation (All Time) Calculated using the full available price history since Sep 27, 2019	0.27

Return for Risk

VFEG.L vs. VEMA.L — Risk / Return Rank

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

VFEG.L

VFEG.L Risk / Return Rank: 66
VFEG.L Sharpe Ratio Rank: 68
VFEG.L Sortino Ratio Rank: 65
VFEG.L Omega Ratio Rank: 67
VFEG.L Calmar Ratio Rank: 69
VFEG.L Martin Ratio Rank: 62

VEMA.L

VEMA.L Risk / Return Rank: 52
VEMA.L Sharpe Ratio Rank: 55
VEMA.L Sortino Ratio Rank: 59
VEMA.L Omega Ratio Rank: 54
VEMA.L Calmar Ratio Rank: 50
VEMA.L Martin Ratio Rank: 43

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.

VFEG.L vs. VEMA.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets UCITS ETF Acc (VFEG.L) and Vanguard USD Emerging Markets Government Bond UCITS ETF Accumulating (VEMA.L). 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.

	VFEG.L	VEMA.L	Difference
Sharpe ratio: Return per unit of total volatility	2.21	1.83	+0.38
Sortino ratio: Return per unit of downside risk	2.97	2.76	+0.21
Omega ratio: Gain probability vs. loss probability	1.40	1.33	+0.07
Calmar ratio: Return relative to maximum drawdown	3.39	2.44	+0.95
Martin ratio: Return relative to average drawdown	11.12	6.67	+4.45
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFEG.L vs. VEMA.L - Sharpe Ratio Comparison

The current VFEG.L Sharpe Ratio is 2.21, which is comparable to the VEMA.L Sharpe Ratio of 1.83. The chart below compares the historical Sharpe Ratios of VFEG.L and VEMA.L, 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

	VFEG.L	VEMA.L	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.21	1.83	+0.38
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.40	0.42	-0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.44	0.31	+0.12

Drawdowns

VFEG.L vs. VEMA.L - Drawdown Comparison

The maximum VFEG.L drawdown since its inception was -25.35%, which is greater than VEMA.L's maximum drawdown of -14.59%. Use the drawdown chart below to compare losses from any high point for VFEG.L and VEMA.L.

Drawdown Indicators

	VFEG.L	VEMA.L	Difference
Max Drawdown Largest peak-to-trough decline	-25.35%	-14.59%	-10.76%
Max Drawdown (1Y) Largest decline over 1 year	-8.99%	-4.39%	-4.60%
Max Drawdown (3Y) Largest decline over 3 years	-14.61%	-8.38%	-6.23%
Max Drawdown (5Y) Largest decline over 5 years	-19.47%	-11.41%	-8.06%
Current Drawdown Current decline from peak	-1.40%	-0.45%	-0.95%
Average Drawdown Average peak-to-trough decline	-8.82%	-6.28%	-2.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.75%	1.61%	+1.14%

Volatility

VFEG.L vs. VEMA.L - Volatility Comparison

Vanguard FTSE Emerging Markets UCITS ETF Acc (VFEG.L) has a higher volatility of 5.09% compared to Vanguard USD Emerging Markets Government Bond UCITS ETF Accumulating (VEMA.L) at 1.47%. This indicates that VFEG.L's price experiences larger fluctuations and is considered to be riskier than VEMA.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFEG.L	VEMA.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.09%	1.47%	+3.62%
Volatility (6M) Calculated over the trailing 6-month period	11.04%	4.07%	+6.97%
Volatility (1Y) Calculated over the trailing 1-year period	13.80%	5.85%	+7.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.17%	8.14%	+7.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.44%	9.49%	+7.95%

VFEG.L vs. VEMA.L - Expense Ratio Comparison

VFEG.L has a 0.22% expense ratio, which is lower than VEMA.L's 0.25% 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

VFEG.L vs. VEMA.L - Dividend Comparison

Neither VFEG.L nor VEMA.L has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both VFEG.L and VEMA.L in my portfolio?

VFEG.L and VEMA.L have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VFEG.L or VEMA.L?

On fees, VFEG.L is cheaper at 0.22% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VFEG.L or VEMA.L?

VFEG.L is cheaper with a 0.22% expense ratio, compared with 0.25% for VEMA.L.

What is the main difference between VFEG.L and VEMA.L?

VFEG.L is categorized as Emerging Markets Equities, while VEMA.L is Emerging Markets Bonds. VFEG.L tracks MSCI EM NR USD, while VEMA.L tracks JPM EMBI Global Diversified TR USD. Their fees differ too: 0.22% for VFEG.L and 0.25% for VEMA.L.