VMBS vs. EMXC
VMBS (Vanguard Mortgage-Backed Securities ETF) and EMXC (iShares MSCI Emerging Markets ex China ETF) are both exchange-traded funds - VMBS is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index, while EMXC is a Emerging Markets Equities fund tracking the MSCI Emerging Markets ex China Index. Both are passively managed. Over the past 5 years, VMBS returned 0.55%/yr vs 13.27%/yr for EMXC. At a 0.13 correlation, their price movements are largely independent. VMBS charges 0.04%/yr vs 0.49%/yr for EMXC.
Performance
VMBS vs. EMXC - Performance Comparison
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Returns By Period
In the year-to-date period, VMBS achieves a 0.72% return, which is significantly lower than EMXC's 40.84% return.
VMBS
- 1D
- -0.51%
- 1M
- 0.98%
- YTD
- 0.72%
- 6M
- 0.96%
- 1Y
- 6.16%
- 3Y*
- 4.48%
- 5Y*
- 0.55%
- 10Y*
- 1.36%
EMXC
- 1D
- 0.35%
- 1M
- 9.42%
- YTD
- 40.84%
- 6M
- 48.33%
- 1Y
- 72.64%
- 3Y*
- 27.38%
- 5Y*
- 13.27%
- 10Y*
- —
VMBS vs. EMXC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VMBS Vanguard Mortgage-Backed Securities ETF | 0.72% | 8.36% | 1.70% | 5.34% | -11.90% | -1.28% | 3.76% | 6.19% | 0.91% | 0.79% |
EMXC iShares MSCI Emerging Markets ex China ETF | 40.84% | 35.14% | 2.68% | 18.96% | -19.56% | 8.54% | 12.76% | 15.80% | -12.96% | 7.16% |
Correlation
The correlation between VMBS and EMXC is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.35 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.26 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.21 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2017 | 0.13 |
Over the past year, VMBS and EMXC have become more correlated (0.35) than their long-term average of 0.13, meaning their price movements have been converging.
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Return for Risk
VMBS vs. EMXC — Risk / Return Rank
VMBS
EMXC
VMBS vs. EMXC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and iShares MSCI Emerging Markets ex China ETF (EMXC). 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.
| VMBS | EMXC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.59 | ||
| Sortino ratioReturn per unit of downside risk | -1.50 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.55 | -0.29 |
| Calmar ratioReturn relative to maximum drawdown | 2.30 | 5.07 | -2.76 |
| Martin ratioReturn relative to average drawdown | 7.38 | 19.50 | -12.11 |
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Drawdowns
VMBS vs. EMXC - Drawdown Comparison
The maximum VMBS drawdown since its inception was -17.47%, smaller than the maximum EMXC drawdown of -42.81%. Use the drawdown chart below to compare losses from any high point for VMBS and EMXC.
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Drawdown Indicators
| VMBS | EMXC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.47% | -42.81% | +25.34% |
Max Drawdown (1Y)Largest decline over 1 year | -2.68% | -14.41% | +11.73% |
Max Drawdown (3Y)Largest decline over 3 years | -7.65% | -19.12% | +11.47% |
Max Drawdown (5Y)Largest decline over 5 years | -17.12% | -28.91% | +11.79% |
Max Drawdown (10Y)Largest decline over 10 years | -17.47% | — | — |
Current DrawdownCurrent decline from peak | -1.26% | -1.61% | +0.35% |
Average DrawdownAverage peak-to-trough decline | -2.49% | -10.16% | +7.67% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.84% | 3.74% | -2.90% |
Volatility
VMBS vs. EMXC - Volatility Comparison
The current volatility for Vanguard Mortgage-Backed Securities ETF (VMBS) is 1.48%, while iShares MSCI Emerging Markets ex China ETF (EMXC) has a volatility of 12.74%. This indicates that VMBS experiences smaller price fluctuations and is considered to be less risky than EMXC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VMBS | EMXC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.48% | 12.74% | -11.26% |
Volatility (6M)Calculated over the trailing 6-month period | 3.27% | 22.16% | -18.89% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.30% | 24.15% | -19.85% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.78% | 18.09% | -11.31% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.41% | 20.10% | -14.69% |
VMBS vs. EMXC - Expense Ratio Comparison
VMBS has a 0.04% expense ratio, which is lower than EMXC's 0.49% expense ratio.
Dividends
VMBS vs. EMXC - Dividend Comparison
VMBS's dividend yield for the trailing twelve months is around 4.18%, more than EMXC's 1.89% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EMXC iShares MSCI Emerging Markets ex China ETF | 1.89% | 2.82% | 2.69% | 1.83% | 2.85% | 1.78% | 1.45% | 3.25% | 2.63% | 0.99% | 0.00% | 0.00% |
VMBS Vanguard Mortgage-Backed Securities ETF | 4.18% | 4.20% | 3.94% | 3.31% | 2.35% | 1.02% | 2.01% | 2.77% | 2.72% | 2.16% | 2.10% | 2.12% |
Frequently Asked Questions
VMBS and EMXC have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
EMXC has higher volatility (12.74%) compared to VMBS (1.48%). In terms of maximum drawdown, VMBS dropped -17.47% vs EMXC's -42.81%.
On 5-year performance, EMXC leads with 13.27% vs 0.55% for VMBS. On fees, VMBS is cheaper at 0.04% per year. On volatility, VMBS has been the lower-risk option at 1.48%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, EMXC has performed better with a 13.27% return vs 0.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VMBS is cheaper with a 0.04% expense ratio, compared with 0.49% for EMXC.
VMBS has the higher dividend yield at 4.18%, compared with 1.89% for EMXC.
VMBS is categorized as Mortgage Backed Securities, while EMXC is Emerging Markets Equities. VMBS tracks Barclays Capital U.S. MBS Index, while EMXC tracks MSCI Emerging Markets ex China Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VMBS and 0.49% for EMXC.
EMXC currently has the higher Sharpe Ratio (3.03 vs 1.44), 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.
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