EMD vs VXUS
Western Asset Emerging Markets Debt Fund Inc vs Vanguard Total International Stock ETF
Which is better, EMD or VXUS?
Emerging Markets Bond against Large Cap Blend.
VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | EMD | VXUS |
|---|---|---|
| Expense Ratio | 3.09% | 0.05%Best |
| AUM | $632M | $158.1B |
| Dividend Yield | 9.31% | 2.51% |
| Holdings | 267 | 8,747 |
| YTD Return | -0.18% | +12.21%Best |
| 1Y Return | +6.15% | +19.22%Best |
| 3Y Return (annualized) | +16.39% | +19.10%Best |
| 5Y Return (annualized) | +3.82% | +8.63%Best |
| Volatility (annualized) | 16.1% | 15.0%Best |
| Max Drawdown | -64.5% | -39.9%Best |
| $10,000 over 5 years | $12,062 | $15,127Best |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Emerging Markets Bond | Large Cap Blend |
| Inception | Dec 1, 2003 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jan 28, 2011 to Sep 16, 2026 (15.6 years).
EMD vs VXUS growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 15.6 years both funds cover.
EMD vs VXUS Performance
Western Asset Emerging Markets Debt Fund Inc (EMD) is an ETF from Franklin Templeton Investments (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year EMD returned +6.15% while VXUS returned +19.22%. Year to date, EMD is down 0.18% versus a gain of 12.21% for VXUS.
Over three years, EMD compounded at +16.39% per year against +19.10% for VXUS; over five years the annualized figures are +3.82% and +8.63% respectively. Across the full 16-year window we track, VXUS has the edge at +4.69% annualized vs -0.15%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EMD has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 15.0% for VXUS. 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 -64.5% for EMD and -39.9% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EMD charges 3.09% per year while VXUS charges 0.05%. On a $10,000 position that is $309 vs $5 annually, a gap of $304 per year that compounds over a long holding period. On income, EMD currently yields 9.31% against 2.51% for VXUS.
Holdings Overlap
We hold position weights for 136 holdings in EMD and 8,082 in VXUS, totalling 71.2% and 88.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 122 days apart, EMD as of Mar 31, 2026 and VXUS as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 136 positions we hold weights for in EMD and 8,082 in VXUS, against full books of 267 and 8,747.
You are not choosing between two funds in isolation.
Whichever of EMD and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, EMD or VXUS?
EMD has an expense ratio of 3.09% while VXUS charges 0.05%. VXUS is the cheaper option, by $304 a year on a $10,000 investment.
Which performed better, EMD or VXUS?
Over the past year EMD returned +6.15% vs +19.22% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), EMD annualized -0.15% vs +4.69% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, EMD or VXUS?
EMD has been the more volatile fund at 16.1% annualized versus 15.0% for VXUS. Worst drawdown: EMD -64.5% vs VXUS -39.9%.
Should I hold both EMD and VXUS?
EMD and VXUS have a monthly-return correlation of 0.80, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, EMD or VXUS?
EMD yields 9.31% while VXUS yields 2.51%, so EMD currently pays the higher dividend yield.
Is VXUS better than EMD?
VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.