VWOB vs. EMBD

Last updated Jun 26, 2026

VWOB (Vanguard Emerging Markets Government Bond ETF) and EMBD (Global X Emerging Markets Bond ETF) are both Emerging Markets Bonds funds. VWOB is passively managed, while EMBD is actively managed. Over the past 5 years, VWOB returned 2.19%/yr vs 3.08%/yr for EMBD. Their correlation of 0.81 suggests significant overlap in exposure. VWOB charges 0.15%/yr vs 0.39%/yr for EMBD.

Performance

VWOB vs. EMBD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Emerging Markets Government Bond ETF (VWOB) and Global X Emerging Markets Bond ETF (EMBD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with VWOB having a 2.24% return and EMBD slightly lower at 2.17%.

VWOB

• 1D: 0.00%
• 1M: 1.46%
• YTD: 2.24%
• 6M: 2.00%
• 1Y: 9.93%
• 3Y*: 9.00%
• 5Y*: 2.19%
• 10Y*: 3.52%

EMBD

• 1D: 0.19%
• 1M: 1.41%
• YTD: 2.17%
• 6M: 2.22%
• 1Y: 9.51%
• 3Y*: 9.20%
• 5Y*: 3.08%
• 10Y*: —

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

VWOB vs. EMBD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
VWOB Vanguard Emerging Markets Government Bond ETF	2.24%	13.49%	5.20%	10.68%	-17.39%	-1.80%	9.67%
EMBD Global X Emerging Markets Bond ETF	2.17%	12.55%	6.76%	10.60%	-13.84%	-1.84%	11.42%

Correlation

The correlation between VWOB and EMBD is 0.72, 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	0.72
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (All Time) Calculated using the full available price history since Jun 3, 2020	0.81

The correlation between VWOB and EMBD has been stable across timeframes, ranging from 0.72 to 0.81 - a consistent structural relationship.

Return for Risk

VWOB vs. EMBD — Risk / Return Rank

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

VWOB

VWOB Risk / Return Rank: 64
VWOB Sharpe Ratio Rank: 67
VWOB Sortino Ratio Rank: 71
VWOB Omega Ratio Rank: 71
VWOB Calmar Ratio Rank: 52
VWOB Martin Ratio Rank: 61

EMBD

EMBD Risk / Return Rank: 54
EMBD Sharpe Ratio Rank: 53
EMBD Sortino Ratio Rank: 56
EMBD Omega Ratio Rank: 52
EMBD Calmar Ratio Rank: 51
EMBD Martin Ratio Rank: 57

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.

VWOB vs. EMBD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Emerging Markets Government Bond ETF (VWOB) and Global X Emerging Markets Bond ETF (EMBD). 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.

	VWOB	EMBD	Difference
Sharpe ratio: Return per unit of total volatility	1.89	1.60	+0.30
Sortino ratio: Return per unit of downside risk	2.77	2.37	+0.40
Omega ratio: Gain probability vs. loss probability	1.36	1.29	+0.07
Calmar ratio: Return relative to maximum drawdown	2.23	2.26	-0.03
Martin ratio: Return relative to average drawdown	9.37	8.73	+0.64

VWOB vs. EMBD - Sharpe Ratio Comparison

The current VWOB Sharpe Ratio is 1.89, which is comparable to the EMBD Sharpe Ratio of 1.60. The chart below compares the historical Sharpe Ratios of VWOB and EMBD, 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

VWOB vs. EMBD - Drawdown Comparison

The maximum VWOB drawdown since its inception was -26.98%, which is greater than EMBD's maximum drawdown of -24.27%. Use the drawdown chart below to compare losses from any high point for VWOB and EMBD.

Drawdown Indicators

	VWOB	EMBD	Difference
Max Drawdown Largest peak-to-trough decline	-26.98%	-24.27%	-2.71%
Max Drawdown (1Y) Largest decline over 1 year	-4.48%	-4.23%	-0.25%
Max Drawdown (3Y) Largest decline over 3 years	-7.71%	-7.03%	-0.68%
Max Drawdown (5Y) Largest decline over 5 years	-26.98%	-24.27%	-2.71%
Max Drawdown (10Y) Largest decline over 10 years	-26.98%	—	—
Current Drawdown Current decline from peak	-0.22%	-0.23%	+0.01%
Average Drawdown Average peak-to-trough decline	-4.78%	-5.82%	+1.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.06%	1.09%	-0.03%

Volatility

VWOB vs. EMBD - Volatility Comparison

Vanguard Emerging Markets Government Bond ETF (VWOB) has a higher volatility of 1.70% compared to Global X Emerging Markets Bond ETF (EMBD) at 1.52%. This indicates that VWOB's price experiences larger fluctuations and is considered to be riskier than EMBD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWOB	EMBD	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.70%	1.52%	+0.18%
Volatility (6M) Calculated over the trailing 6-month period	4.35%	4.17%	+0.18%
Volatility (1Y) Calculated over the trailing 1-year period	5.27%	5.99%	-0.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.19%	9.18%	+0.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.34%	8.86%	+0.48%

VWOB vs. EMBD - Expense Ratio Comparison

VWOB has a 0.15% expense ratio, which is lower than EMBD's 0.39% expense ratio.

Dividends

VWOB vs. EMBD - Dividend Comparison

VWOB's dividend yield for the trailing twelve months is around 5.81%, more than EMBD's 5.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EMBD Global X Emerging Markets Bond ETF	5.64%	5.48%	5.83%	5.29%	4.53%	4.99%	3.34%	0.00%	0.00%	0.00%	0.00%	0.00%
VWOB Vanguard Emerging Markets Government Bond ETF	5.81%	5.92%	6.08%	5.50%	5.30%	4.04%	4.18%	4.58%	4.52%	4.61%	4.71%	4.93%

Frequently Asked Questions

Can I hold both VWOB and EMBD in my portfolio?

VWOB and EMBD have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VWOB or EMBD?

VWOB has higher volatility (1.70%) compared to EMBD (1.52%). In terms of maximum drawdown, VWOB dropped -26.98% vs EMBD's -24.27%.

Which ETF is better, VWOB or EMBD?

On 5-year performance, EMBD leads with 3.08% vs 2.19% for VWOB. On fees, VWOB is cheaper at 0.15% per year. On volatility, EMBD has been the lower-risk option at 1.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VWOB or EMBD?

Over the 5-year period, EMBD has performed better with a 3.08% return vs 2.19%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VWOB or EMBD?

VWOB is cheaper with a 0.15% expense ratio, compared with 0.39% for EMBD.

Which ETF pays a higher dividend yield, VWOB or EMBD?

VWOB has the higher dividend yield at 5.81%, compared with 5.64% for EMBD.

What is the main difference between VWOB and EMBD?

They also come from different issuers: Vanguard and Global X. Their fees differ too: 0.15% for VWOB and 0.39% for EMBD.

Which has better risk-adjusted returns?

VWOB currently has the higher Sharpe Ratio (1.89 vs 1.60), 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.