VFEM.L vs. IBTM.L
VFEM.L (Vanguard FTSE Emerging Markets UCITS ETF Distributing) and IBTM.L (iShares USD Treasury Bond 7-10yr UCITS ETF (Dist)) are both exchange-traded funds - VFEM.L is a Emerging Markets Equities fund tracking the MSCI EM NR USD, while IBTM.L is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index. Both are passively managed. Over the past 10 years, VFEM.L returned 9.54%/yr vs 1.18%/yr for IBTM.L. At a 0.03 correlation, their price movements are largely independent. VFEM.L charges 0.22%/yr vs 0.07%/yr for IBTM.L.
Performance
VFEM.L vs. IBTM.L - Performance Comparison
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Returns By Period
In the year-to-date period, VFEM.L achieves a 10.41% return, which is significantly higher than IBTM.L's -0.44% return. Over the past 10 years, VFEM.L has outperformed IBTM.L with an annualized return of 9.54%, while IBTM.L has yielded a comparatively lower 1.18% annualized return.
VFEM.L
- 1D
- 1.96%
- 1M
- -0.07%
- YTD
- 10.41%
- 6M
- 11.41%
- 1Y
- 25.82%
- 3Y*
- 14.24%
- 5Y*
- 5.97%
- 10Y*
- 9.54%
IBTM.L
- 1D
- -0.27%
- 1M
- 1.13%
- YTD
- -0.44%
- 6M
- -0.61%
- 1Y
- 4.98%
- 3Y*
- 0.81%
- 5Y*
- -0.07%
- 10Y*
- 1.18%
VFEM.L vs. IBTM.L - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VFEM.L Vanguard FTSE Emerging Markets UCITS ETF Distributing | 10.41% | 16.90% | 14.50% | 1.36% | -7.39% | 0.09% | 11.19% | 15.14% | -7.60% | 19.93% |
IBTM.L iShares USD Treasury Bond 7-10yr UCITS ETF (Dist) | -0.44% | 0.89% | 1.46% | -2.26% | -4.74% | -1.77% | 6.02% | 5.50% | 6.50% | -6.47% |
Correlation
The correlation between VFEM.L and IBTM.L is -0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.03 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.04 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.06 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.04 |
Correlation (All Time) Calculated using the full available price history since May 22, 2012 | 0.03 |
The correlation between VFEM.L and IBTM.L shifts across timeframes, from -0.06 (5 years) to 0.04 (10 years), reflecting how their relationship changes across market environments.
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Return for Risk
VFEM.L vs. IBTM.L — Risk / Return Rank
VFEM.L
IBTM.L
VFEM.L vs. IBTM.L - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.L) and iShares USD Treasury Bond 7-10yr UCITS ETF (Dist) (IBTM.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.
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.
| VFEM.L | IBTM.L | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.03 | ||
| Sortino ratioReturn per unit of downside risk | +1.28 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.14 | +0.19 |
| Calmar ratioReturn relative to maximum drawdown | 2.88 | 0.89 | +1.99 |
| Martin ratioReturn relative to average drawdown | 9.32 | 2.08 | +7.24 |
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Drawdowns
VFEM.L vs. IBTM.L - Drawdown Comparison
The maximum VFEM.L drawdown since its inception was -32.13%, smaller than the maximum IBTM.L drawdown of -52.39%. Use the drawdown chart below to compare losses from any high point for VFEM.L and IBTM.L.
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Drawdown Indicators
| VFEM.L | IBTM.L | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -32.13% | -52.39% | +20.26% |
Max Drawdown (1Y)Largest decline over 1 year | -8.92% | -5.57% | -3.35% |
Max Drawdown (3Y)Largest decline over 3 years | -14.68% | -7.57% | -7.11% |
Max Drawdown (5Y)Largest decline over 5 years | -19.58% | -16.29% | -3.29% |
Max Drawdown (10Y)Largest decline over 10 years | -25.90% | -26.54% | +0.64% |
Current DrawdownCurrent decline from peak | -2.67% | -21.38% | +18.71% |
Average DrawdownAverage peak-to-trough decline | -8.58% | -20.63% | +12.05% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.76% | 2.38% | +0.38% |
Volatility
VFEM.L vs. IBTM.L - Volatility Comparison
Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.L) has a higher volatility of 5.13% compared to iShares USD Treasury Bond 7-10yr UCITS ETF (Dist) (IBTM.L) at 1.55%. This indicates that VFEM.L's price experiences larger fluctuations and is considered to be riskier than IBTM.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VFEM.L | IBTM.L | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.13% | 1.55% | +3.58% |
Volatility (6M)Calculated over the trailing 6-month period | 11.41% | 4.49% | +6.92% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.09% | 6.25% | +7.84% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.51% | 9.47% | +6.04% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.49% | 10.58% | +6.91% |
VFEM.L vs. IBTM.L - Expense Ratio Comparison
VFEM.L has a 0.22% expense ratio, which is higher than IBTM.L's 0.07% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VFEM.L vs. IBTM.L - Dividend Comparison
VFEM.L's dividend yield for the trailing twelve months is around 2.06%, less than IBTM.L's 4.36% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBTM.L iShares USD Treasury Bond 7-10yr UCITS ETF (Dist) | 4.36% | 4.19% | 3.94% | 3.16% | 1.96% | 1.14% | 1.69% | 2.53% | 2.34% | 2.02% | 1.79% | 1.97% |
VFEM.L Vanguard FTSE Emerging Markets UCITS ETF Distributing | 2.06% | 2.36% | 2.31% | 2.63% | 3.28% | 2.26% | 1.94% | 2.43% | 2.73% | 2.22% | 2.22% | 2.82% |
Frequently Asked Questions
VFEM.L and IBTM.L have a correlation of -0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, IBTM.L is cheaper at 0.07% per year. The better choice depends on whether you care most about return, fees, risk, or income.
IBTM.L is cheaper with a 0.07% expense ratio, compared with 0.22% for VFEM.L.
VFEM.L is categorized as Emerging Markets Equities, while IBTM.L is Government Bonds. VFEM.L tracks MSCI EM NR USD, while IBTM.L tracks ICE U.S. Treasury 7-10 Year Bond Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.22% for VFEM.L and 0.07% for IBTM.L.
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