VWOB vs. PCY
VWOB (Vanguard Emerging Markets Government Bond ETF) and PCY (Invesco Emerging Markets Sovereign Debt ETF) are both Emerging Markets Bonds funds - VWOB tracks the Bloomberg USD Emerging Markets Government RIC Capped Index while PCY tracks the DB Emerging Market USD Liquid Balanced Index. Both are passively managed. Over the past 10 years, VWOB returned 3.52%/yr vs 2.76%/yr for PCY. Their correlation of 0.88 suggests significant overlap in exposure. VWOB charges 0.15%/yr vs 0.50%/yr for PCY.
Performance
VWOB vs. PCY - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VWOB achieves a 2.09% return, which is significantly lower than PCY's 2.88% return. Over the past 10 years, VWOB has outperformed PCY with an annualized return of 3.52%, while PCY has yielded a comparatively lower 2.76% 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%
PCY
- 1D
- -0.49%
- 1M
- 2.56%
- YTD
- 2.88%
- 6M
- 2.98%
- 1Y
- 14.69%
- 3Y*
- 10.82%
- 5Y*
- 1.46%
- 10Y*
- 2.76%
VWOB vs. PCY - 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% |
PCY Invesco Emerging Markets Sovereign Debt ETF | 2.88% | 16.31% | 2.55% | 18.48% | -24.47% | -4.30% | 2.29% | 17.66% | -6.16% | 9.71% |
Correlation
The correlation between VWOB and PCY is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.94 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.94 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.91 |
Correlation (All Time) Calculated using the full available price history since Jun 4, 2013 | 0.88 |
The correlation between VWOB and PCY has been stable across timeframes, ranging from 0.88 to 0.94 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VWOB vs. PCY — Risk / Return Rank
VWOB
PCY
VWOB vs. PCY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Emerging Markets Government Bond ETF (VWOB) and Invesco Emerging Markets Sovereign Debt ETF (PCY). 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 | PCY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.05 | ||
| Sortino ratioReturn per unit of downside risk | +0.11 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.36 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 2.37 | 2.50 | -0.13 |
| Martin ratioReturn relative to average drawdown | 9.98 | 10.12 | -0.13 |
Loading charts...
Drawdowns
VWOB vs. PCY - Drawdown Comparison
The maximum VWOB drawdown since its inception was -26.98%, smaller than the maximum PCY drawdown of -49.13%. Use the drawdown chart below to compare losses from any high point for VWOB and PCY.
Loading charts...
Drawdown Indicators
| VWOB | PCY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -26.98% | -49.13% | +22.15% |
Max Drawdown (1Y)Largest decline over 1 year | -4.48% | -5.91% | +1.43% |
Max Drawdown (3Y)Largest decline over 3 years | -7.71% | -11.52% | +3.81% |
Max Drawdown (5Y)Largest decline over 5 years | -26.98% | -37.17% | +10.19% |
Max Drawdown (10Y)Largest decline over 10 years | -26.98% | -37.78% | +10.80% |
Current DrawdownCurrent decline from peak | -0.37% | -0.49% | +0.12% |
Average DrawdownAverage peak-to-trough decline | -4.79% | -6.96% | +2.17% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.06% | 1.46% | -0.40% |
Volatility
VWOB vs. PCY - Volatility Comparison
The current volatility for Vanguard Emerging Markets Government Bond ETF (VWOB) is 1.72%, while Invesco Emerging Markets Sovereign Debt ETF (PCY) has a volatility of 2.18%. This indicates that VWOB experiences smaller price fluctuations and is considered to be less risky than PCY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VWOB | PCY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.72% | 2.18% | -0.46% |
Volatility (6M)Calculated over the trailing 6-month period | 4.36% | 5.99% | -1.63% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.29% | 7.53% | -2.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 9.19% | 13.18% | -3.99% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.35% | 12.96% | -3.61% |
VWOB vs. PCY - Expense Ratio Comparison
VWOB has a 0.15% expense ratio, which is lower than PCY's 0.50% expense ratio.
Dividends
VWOB vs. PCY - Dividend Comparison
VWOB's dividend yield for the trailing twelve months is around 5.81%, less than PCY's 6.32% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PCY Invesco Emerging Markets Sovereign Debt ETF | 6.32% | 5.93% | 6.65% | 6.48% | 6.81% | 4.80% | 4.45% | 4.78% | 4.93% | 4.80% | 5.19% | 5.46% |
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
With a correlation of 0.94, VWOB and PCY move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
PCY has higher volatility (2.18%) compared to VWOB (1.72%). In terms of maximum drawdown, VWOB dropped -26.98% vs PCY's -49.13%.
On 10-year performance, VWOB leads with 3.52% vs 2.76% for PCY. 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 2.76%. 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 0.50% for PCY.
PCY has the higher dividend yield at 6.32%, compared with 5.81% for VWOB.
VWOB tracks Bloomberg USD Emerging Markets Government RIC Capped Index, while PCY tracks DB Emerging Market USD Liquid Balanced Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.15% for VWOB and 0.50% for PCY.
VWOB currently has the higher Sharpe Ratio (2.01 vs 1.96), 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.
Find the right allocation for VWOB and PCY
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer