EMB vs VXUS
EMB vs VXUS
iShares J.P. Morgan USD Emerging Markets Bond ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | EMB | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.05% | |
| AUM | $14.7B | $156.5B | |
| Dividend Yield | 5.02% | 2.60% | |
| Holdings | 616 | 8,747 | |
| YTD Return | +1.50% | +14.57% | |
| 1Y Return | +6.85% | +27.82% | |
| 3Y Return (annualized) | +8.79% | +19.27% | |
| 5Y Return (annualized) | +1.75% | +9.28% | |
| Volatility (annualized) | 11.3% | 15.1% | |
| Max Drawdown | -36.4% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 17, 2007 | Jan 26, 2011 |
EMB vs VXUS Performance
iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year EMB returned +6.85% while VXUS returned +27.82%. Year to date, EMB is up 1.50% versus a gain of 14.57% for VXUS.
Over three years, EMB compounded at +8.79% per year against +19.27% for VXUS; over five years the annualized figures are +1.75% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs +1.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EMB charges 0.39% per year while VXUS charges 0.05%. On a $10,000 position that is $39 vs $5 annually, a gap of $34 per year that compounds over a long holding period. On income, EMB currently yields 5.02% against 2.60% for VXUS.
Holdings Overlap
EMB and VXUS share 3 holdings out of 8109 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in EMB | Weight in VXUS | Difference |
|---|---|---|---|
| ARGENT 4.125 07/09/3 | 1.11% | 0.00% | 1.11% |
| ARGENT 5 01/09/38 | 0.65% | 0.00% | 0.65% |
| ARGENT 3.5 07/09/41 | 0.52% | 0.00% | 0.52% |
Frequently Asked Questions
Which is cheaper, EMB or VXUS?
EMB has an expense ratio of 0.39% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, EMB or VXUS?
Over the past year EMB returned +6.85% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), EMB annualized +1.12% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, EMB or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 11.3% for EMB. Worst drawdown: EMB -36.4% vs VXUS -39.9%.
Should I hold both EMB and VXUS?
EMB and VXUS have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMB and VXUS?
EMB and VXUS share 3 common holdings with a 0.0% weight overlap. Combined, they hold 8109 unique securities.
Which pays a higher dividend, EMB or VXUS?
EMB yields 5.02% while VXUS yields 2.60%, so EMB currently pays the higher dividend yield.
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