EMB vs VTI
iShares J.P. Morgan USD Emerging Markets Bond ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | EMB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.03% | |
| AUM | $14.7B | $663.5B | |
| Dividend Yield | 5.02% | 1.07% | |
| Holdings | 616 | 3,543 | |
| YTD Return | +1.50% | +14.20% | |
| 1Y Return | +6.85% | +24.16% | |
| 3Y Return (annualized) | +8.79% | +21.12% | |
| 5Y Return (annualized) | +1.75% | +12.37% | |
| Volatility (annualized) | 11.3% | 15.3% | |
| Max Drawdown | -36.4% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 17, 2007 | May 24, 2001 |
EMB vs VTI Performance
iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year EMB returned +6.85% while VTI returned +24.16%. Year to date, EMB is up 1.50% versus a gain of 14.20% for VTI.
Over three years, EMB compounded at +8.79% per year against +21.12% for VTI; over five years the annualized figures are +1.75% and +12.37% respectively. Across the full 19-year window we track, VTI has the edge at +8.14% annualized vs +1.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 11.3% for EMB. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -36.4% for EMB and -56.6% for VTI. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EMB charges 0.39% per year while VTI charges 0.03%. On a $10,000 position that is $39 vs $3 annually, a gap of $36 per year that compounds over a long holding period. On income, EMB currently yields 5.02% against 1.07% for VTI.
Holdings Overlap
EMB and VTI share 0 holdings out of 3034 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EMB or VTI?
EMB has an expense ratio of 0.39% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, EMB or VTI?
Over the past year EMB returned +6.85% vs +24.16% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (19 years), EMB annualized +1.12% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, EMB or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 11.3% for EMB. Worst drawdown: EMB -36.4% vs VTI -56.6%.
Should I hold both EMB and VTI?
EMB and VTI have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMB and VTI?
EMB and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3034 unique securities.
Which pays a higher dividend, EMB or VTI?
EMB yields 5.02% while VTI yields 1.07%, so EMB currently pays the higher dividend yield.
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