LEMB vs VOO
iShares JP Morgan EM Local Currency Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | LEMB | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.03% | |
| AUM | $736M | $979.0B | |
| Dividend Yield | 2.40% | 1.09% | |
| Holdings | 469 | 509 | |
| YTD Return | +3.17% | +13.44% | |
| 1Y Return | +8.88% | +22.62% | |
| 3Y Return (annualized) | +6.90% | +21.47% | |
| 5Y Return (annualized) | +1.69% | +13.27% | |
| Volatility (annualized) | 10.1% | 14.1% | |
| Max Drawdown | -31.1% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 18, 2011 | Sep 7, 2010 |
LEMB vs VOO Performance
iShares JP Morgan EM Local Currency Bond ETF (LEMB) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year LEMB returned +8.88% while VOO returned +22.62%. Year to date, LEMB is up 3.17% versus a gain of 13.44% for VOO.
Over three years, LEMB compounded at +6.90% per year against +21.47% for VOO; over five years the annualized figures are +1.69% and +13.27% respectively. Across the full 15-year window we track, VOO has the edge at +13.55% annualized vs +0.54%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 10.1% for LEMB. 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 -31.1% for LEMB and -34.3% for VOO. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LEMB charges 0.30% per year while VOO charges 0.03%. On a $10,000 position that is $30 vs $3 annually, a gap of $27 per year that compounds over a long holding period. On income, LEMB currently yields 2.40% against 1.09% for VOO.
Holdings Overlap
LEMB and VOO share 0 holdings out of 508 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, LEMB or VOO?
LEMB has an expense ratio of 0.30% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, LEMB or VOO?
Over the past year LEMB returned +8.88% vs +22.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (15 years), LEMB annualized +0.54% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, LEMB or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 10.1% for LEMB. Worst drawdown: LEMB -31.1% vs VOO -34.3%.
Should I hold both LEMB and VOO?
LEMB and VOO have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LEMB and VOO?
LEMB and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 508 unique securities.
Which pays a higher dividend, LEMB or VOO?
LEMB yields 2.40% while VOO yields 1.09%, so LEMB currently pays the higher dividend yield.
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