XTWO vs. XEMD

Last updated Jun 4, 2026

XTWO (BondBloxx Bloomberg Two Year Target Duration US Treasury ETF) and XEMD (BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF) are both exchange-traded funds - XTWO is a Government Bonds fund tracking the Bloomberg US Treasury 2 Year Target Duration Index, while XEMD is a Emerging Markets Bonds fund tracking the JP Morgan EMBI Global Diversified Liquid 1-10 Y Maturity Index - Benchmark TR Gross. Both are passively managed. Over the past 3 years, XTWO returned 4.12%/yr vs 11.23%/yr for XEMD. At a 0.50 correlation, their price movements are largely independent. XTWO charges 0.05%/yr vs 0.29%/yr for XEMD.

Performance

XTWO vs. XEMD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) and BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF (XEMD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XTWO achieves a 0.41% return, which is significantly lower than XEMD's 2.75% return.

XTWO

• 1D: -0.03%
• 1M: 0.08%
• YTD: 0.41%
• 6M: 0.67%
• 1Y: 3.42%
• 3Y*: 4.12%
• 5Y*: —
• 10Y*: —

XEMD

• 1D: -0.37%
• 1M: 1.21%
• YTD: 2.75%
• 6M: 3.27%
• 1Y: 11.88%
• 3Y*: 11.23%
• 5Y*: —
• 10Y*: —

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

XTWO vs. XEMD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
XTWO BondBloxx Bloomberg Two Year Target Duration US Treasury ETF	0.41%	5.17%	3.92%	4.27%	0.17%
XEMD BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF	2.75%	13.98%	8.77%	10.26%	1.30%

Correlation

The correlation between XTWO and XEMD is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.44
Correlation (All Time) Calculated using the full available price history since Sep 16, 2022	0.50

Return for Risk

XTWO vs. XEMD — Risk / Return Rank

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

XTWO

XTWO Risk / Return Rank: 80
XTWO Sharpe Ratio Rank: 78
XTWO Sortino Ratio Rank: 90
XTWO Omega Ratio Rank: 84
XTWO Calmar Ratio Rank: 75
XTWO Martin Ratio Rank: 72

XEMD

XEMD Risk / Return Rank: 79
XEMD Sharpe Ratio Rank: 79
XEMD Sortino Ratio Rank: 86
XEMD Omega Ratio Rank: 83
XEMD Calmar Ratio Rank: 68
XEMD Martin Ratio Rank: 78

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.

XTWO vs. XEMD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) and BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF (XEMD). 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.

	XTWO	XEMD	Difference
Sharpe ratio: Return per unit of total volatility	2.52	2.57	-0.05
Sortino ratio: Return per unit of downside risk	4.16	3.88	+0.28
Omega ratio: Gain probability vs. loss probability	1.52	1.51	+0.01
Calmar ratio: Return relative to maximum drawdown	3.78	3.39	+0.39
Martin ratio: Return relative to average drawdown	13.59	15.27	-1.68
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XTWO vs. XEMD - Sharpe Ratio Comparison

The current XTWO Sharpe Ratio is 2.52, which is comparable to the XEMD Sharpe Ratio of 2.57. The chart below compares the historical Sharpe Ratios of XTWO and XEMD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XTWO	XEMD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.52	2.57	-0.05
Sharpe Ratio (All Time) Calculated using the full available price history	1.74	1.39	+0.34

Drawdowns

XTWO vs. XEMD - Drawdown Comparison

The maximum XTWO drawdown since its inception was -1.73%, smaller than the maximum XEMD drawdown of -10.01%. Use the drawdown chart below to compare losses from any high point for XTWO and XEMD.

Drawdown Indicators

	XTWO	XEMD	Difference
Max Drawdown Largest peak-to-trough decline	-1.73%	-10.01%	+8.28%
Max Drawdown (1Y) Largest decline over 1 year	-0.91%	-3.52%	+2.61%
Max Drawdown (3Y) Largest decline over 3 years	-1.18%	-4.31%	+3.13%
Current Drawdown Current decline from peak	-0.38%	-0.37%	-0.01%
Average Drawdown Average peak-to-trough decline	-0.40%	-1.26%	+0.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.25%	0.78%	-0.53%

Volatility

XTWO vs. XEMD - Volatility Comparison

The current volatility for BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) is 0.36%, while BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF (XEMD) has a volatility of 1.43%. This indicates that XTWO experiences smaller price fluctuations and is considered to be less risky than XEMD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XTWO	XEMD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.36%	1.43%	-1.07%
Volatility (6M) Calculated over the trailing 6-month period	0.95%	3.70%	-2.75%
Volatility (1Y) Calculated over the trailing 1-year period	1.37%	4.66%	-3.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.16%	6.88%	-4.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.16%	6.88%	-4.72%

XTWO vs. XEMD - Expense Ratio Comparison

XTWO has a 0.05% expense ratio, which is lower than XEMD's 0.29% expense ratio.

Dividends

XTWO vs. XEMD - Dividend Comparison

XTWO's dividend yield for the trailing twelve months is around 4.05%, less than XEMD's 5.82% yield.

Position	TTM	2025	2024	2023	2022
XEMD BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF	5.82%	6.15%	6.30%	6.19%	3.08%
XTWO BondBloxx Bloomberg Two Year Target Duration US Treasury ETF	4.05%	4.24%	4.54%	4.07%	1.13%

Frequently Asked Questions

Can I hold both XTWO and XEMD in my portfolio?

XTWO and XEMD have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XTWO or XEMD?

XEMD has higher volatility (1.43%) compared to XTWO (0.36%). In terms of maximum drawdown, XTWO dropped -1.73% vs XEMD's -10.01%.

Which ETF is better, XTWO or XEMD?

On 3-year performance, XEMD leads with 11.23% vs 4.12% for XTWO. On fees, XTWO is cheaper at 0.05% per year. On volatility, XTWO has been the lower-risk option at 0.36%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XTWO or XEMD?

Over the 3-year period, XEMD has performed better with a 11.23% return vs 4.12%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XTWO or XEMD?

XTWO is cheaper with a 0.05% expense ratio, compared with 0.29% for XEMD.

Which ETF pays a higher dividend yield, XTWO or XEMD?

XEMD has the higher dividend yield at 5.82%, compared with 4.05% for XTWO.

What is the main difference between XTWO and XEMD?

XTWO is categorized as Government Bonds, while XEMD is Emerging Markets Bonds. XTWO tracks Bloomberg US Treasury 2 Year Target Duration Index, while XEMD tracks JP Morgan EMBI Global Diversified Liquid 1-10 Y Maturity Index - Benchmark TR Gross. Their fees differ too: 0.05% for XTWO and 0.29% for XEMD.

Which has better risk-adjusted returns?

XEMD currently has the higher Sharpe Ratio (2.57 vs 2.52), 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.