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VFEM vs XMME: returns, risk and drawdowns compared

Vanguard FTSE Emerging Markets UCITS ETF (Dist) against Xtrackers MSCI Emerging Markets UCITS ETF 1C, over the same 7 years (February 2019 to October 2026) with dividends reinvested.

Data updated October 2026

From February 2019 to October 2026, VFEM returned 4.8% a year and XMME 8.0% a year on average, so XMME came out ahead by 3.2% a year. XMME was the more volatile of the two (15.4% against 13.2% a year), and the deepest falls from a month-end high were 23.0% for VFEM and 23.7% for XMME.

The correlation of monthly returns was 0.94: they moved almost in lockstep. Over 57 rolling 3-year periods, VFEM did better in 0% and XMME in 100%.

Side by side

VFEMXMME
Annual return (CAGR)+4.8%+8.0%
Total return+43%+81%
Annual volatility13.2%15.4%
Maximum drawdown (month-end)−23.0%−23.7%
Worst month−14.3%−13.7%
Best month+9.3%+11.7%
Positive months59%59%
Best year2024: +16.8%2025: +18.7%
Worst year2022: −15.1%2022: −15.0%
1-year return+9.5%+22.2%
5 years, a year+3.4%+7.6%
10 years, a year——
Trading currencyEUREUR

First nine rows: the same 92 months for both funds. Trailing returns: to each fund’s last close.

Growth of 10,000: VFEM vs XMME

10,00015,00020,0002020202120222023202420252026
VFEM — Vanguard FTSE Emerging Markets UCITS ETF (Dist)XMME — Xtrackers MSCI Emerging Markets UCITS ETF 1C

Returns by calendar year

YearVFEMXMME
2025+9.0%+18.7%
2024+16.8%+13.8%
2023+1.3%+5.9%
2022−15.1%−15.0%
2021+5.0%+4.8%
2020+1.7%+6.6%

How the figures are calculated

Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.

The comparison uses only the months in which both funds have prices, so the figures cover the same period even when one fund is older.

Questions

Which has returned more, VFEM or XMME?

From February 2019 to October 2026, VFEM returned +4.8% a year and XMME +8.0% a year, with dividends reinvested. Over rolling 3-year periods VFEM did better in 0% of cases. Past returns do not predict future returns.

Which is riskier, VFEM or XMME?

Over the same months annual volatility was 13.2% for VFEM and 15.4% for XMME; the deepest fall from a month-end high was 23.0% and 23.7%, and the worst single month −14.3% and −13.7%.

How correlated are VFEM and XMME?

The correlation of their monthly returns was 0.94: they moved almost in lockstep. Holding both adds little diversification compared with holding one.

More comparisons

Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.