VWOB vs. LEMB
VWOB (Vanguard Emerging Markets Government Bond ETF) and LEMB (iShares J.P. Morgan EM Local Currency Bond ETF) are both Emerging Markets Bonds funds - VWOB tracks the Bloomberg USD Emerging Markets Government RIC Capped Index while LEMB tracks the J.P. Morgan GBI-EM Global 15 cap 4.5 floor. Both are passively managed. Over the past 10 years, VWOB returned 3.52%/yr vs 1.45%/yr for LEMB. A 0.55 correlation means they provide meaningful diversification when combined. VWOB charges 0.15%/yr vs 0.30%/yr for LEMB.
Performance
VWOB vs. LEMB - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with VWOB having a 2.09% return and LEMB slightly lower at 2.00%. Over the past 10 years, VWOB has outperformed LEMB with an annualized return of 3.52%, while LEMB has yielded a comparatively lower 1.45% annualized return.
VWOB
- 1D
- -0.37%
- 1M
- 1.81%
- YTD
- 2.09%
- 6M
- 2.11%
- 1Y
- 10.57%
- 3Y*
- 9.07%
- 5Y*
- 2.13%
- 10Y*
- 3.52%
LEMB
- 1D
- -0.05%
- 1M
- 1.68%
- YTD
- 2.00%
- 6M
- 2.42%
- 1Y
- 9.76%
- 3Y*
- 5.90%
- 5Y*
- 1.19%
- 10Y*
- 1.45%
VWOB vs. LEMB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VWOB Vanguard Emerging Markets Government Bond ETF | 2.09% | 13.49% | 5.20% | 10.68% | -17.39% | -1.80% | 5.65% | 14.46% | -2.92% | 8.41% |
LEMB iShares J.P. Morgan EM Local Currency Bond ETF | 2.00% | 18.02% | -1.72% | 7.23% | -10.74% | -9.92% | 3.10% | 6.40% | -7.49% | 12.49% |
Correlation
The correlation between VWOB and LEMB is 0.63, 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 | 0.63 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.58 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.61 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.58 |
Correlation (All Time) Calculated using the full available price history since Jun 4, 2013 | 0.55 |
The correlation between VWOB and LEMB has been stable across timeframes, ranging from 0.55 to 0.63 - a consistent structural relationship.
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Return for Risk
VWOB vs. LEMB — Risk / Return Rank
VWOB
LEMB
VWOB vs. LEMB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Emerging Markets Government Bond ETF (VWOB) and iShares J.P. Morgan EM Local Currency Bond ETF (LEMB). 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 | LEMB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.55 | ||
| Sortino ratioReturn per unit of downside risk | +0.90 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.28 | +0.11 |
| Calmar ratioReturn relative to maximum drawdown | 2.37 | 1.63 | +0.73 |
| Martin ratioReturn relative to average drawdown | 9.98 | 5.38 | +4.60 |
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Drawdowns
VWOB vs. LEMB - Drawdown Comparison
The maximum VWOB drawdown since its inception was -26.98%, smaller than the maximum LEMB drawdown of -30.82%. Use the drawdown chart below to compare losses from any high point for VWOB and LEMB.
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Drawdown Indicators
| VWOB | LEMB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -26.98% | -30.82% | +3.84% |
Max Drawdown (1Y)Largest decline over 1 year | -4.48% | -6.00% | +1.52% |
Max Drawdown (3Y)Largest decline over 3 years | -7.71% | -10.09% | +2.38% |
Max Drawdown (5Y)Largest decline over 5 years | -26.98% | -23.96% | -3.02% |
Max Drawdown (10Y)Largest decline over 10 years | -26.98% | -29.09% | +2.11% |
Current DrawdownCurrent decline from peak | -0.37% | -4.11% | +3.74% |
Average DrawdownAverage peak-to-trough decline | -4.79% | -12.71% | +7.92% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.06% | 1.82% | -0.76% |
Volatility
VWOB vs. LEMB - Volatility Comparison
The current volatility for Vanguard Emerging Markets Government Bond ETF (VWOB) is 1.72%, while iShares J.P. Morgan EM Local Currency Bond ETF (LEMB) has a volatility of 2.04%. This indicates that VWOB experiences smaller price fluctuations and is considered to be less risky than LEMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VWOB | LEMB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.72% | 2.04% | -0.32% |
Volatility (6M)Calculated over the trailing 6-month period | 4.36% | 5.59% | -1.23% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.29% | 6.73% | -1.44% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 9.19% | 8.25% | +0.94% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.35% | 9.27% | +0.08% |
VWOB vs. LEMB - Expense Ratio Comparison
VWOB has a 0.15% expense ratio, which is lower than LEMB's 0.30% expense ratio.
Dividends
VWOB vs. LEMB - Dividend Comparison
VWOB's dividend yield for the trailing twelve months is around 5.81%, more than LEMB's 2.39% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LEMB iShares J.P. Morgan EM Local Currency Bond ETF | 2.39% | 2.44% | 0.00% | 1.34% | 0.86% | 3.89% | 0.00% | 4.39% | 3.46% | 0.00% | 0.00% | 0.64% |
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
VWOB and LEMB have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LEMB has higher volatility (2.04%) compared to VWOB (1.72%). In terms of maximum drawdown, VWOB dropped -26.98% vs LEMB's -30.82%.
On 10-year performance, VWOB leads with 3.52% vs 1.45% for LEMB. On fees, VWOB is cheaper at 0.15% per year. On volatility, VWOB has been the lower-risk option at 1.72%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VWOB has performed better with a 3.52% return vs 1.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VWOB is cheaper with a 0.15% expense ratio, compared with 0.30% for LEMB.
VWOB has the higher dividend yield at 5.81%, compared with 2.39% for LEMB.
VWOB tracks Bloomberg USD Emerging Markets Government RIC Capped Index, while LEMB tracks J.P. Morgan GBI-EM Global 15 cap 4.5 floor. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.15% for VWOB and 0.30% for LEMB.
VWOB currently has the higher Sharpe Ratio (2.01 vs 1.46), 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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