A p-type field effect transistor (PFET) having a compressively stressed channel and an n-type field effect transistor (NFET) having a tensilely stressed channel are formed. In one embodiment, a silicon-germanium alloy is employed as a device layer, and the source and drain regions of the PFET are formed employing embedded germanium-containing regions, and source and drain regions of the NFET are formed employing embedded silicon-containing regions. In another embodiment, a germanium layer is employed as a device layer, and the source and drain regions of the PFET are formed by implanting a Group IIIA element having an atomic radius greater than the atomic radius of germanium into portions of the germanium layer, and source and drain regions of the NFET are formed employing embedded silicon-germanium alloy regions. The compressive stress and the tensile stress enhance the mobility of charge carriers in the PFET and the NFET, respectively.