IEMG vs VWO
iShares Core MSCI Emerging Markets ETF vs Vanguard FTSE Emerging Markets ETF
Which is better, IEMG or VWO?
Nearly the same fund. VWO costs less.
VWO has a lower expense ratio. IEMG led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.98.
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 | IEMG | VWO |
|---|---|---|
| Expense Ratio | 0.09% | 0.06%Best |
| AUM | $161.6B | $127.3B |
| Dividend Yield | 2.20% | 2.29% |
| Holdings | 2,869 | 6,378 |
| YTD Return | +19.85%Best | +9.29% |
| 1Y Return | +26.08%Best | +11.95% |
| 3Y Return (annualized) | +23.37%Best | +18.81% |
| 5Y Return (annualized) | +8.56%Best | +6.53% |
| Volatility (annualized) | 16.4% | 15.6%Best |
| Max Drawdown | -42.2% | -40.3%Best |
| $10,000 over 5 years | $15,078Best | $13,720 |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Oct 18, 2012 | Mar 4, 2005 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 22, 2012 to Oct 7, 2026 (14 years).
IEMG vs VWO 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 14 years both funds cover.
IEMG vs VWO Performance
iShares Core MSCI Emerging Markets ETF (IEMG) is an ETF from iShares by BlackRock (US) and Vanguard FTSE Emerging Markets ETF (VWO) is an ETF from Vanguard (US). Over the past year IEMG returned +26.08% while VWO returned +11.95%. Year to date, IEMG is up 19.85% versus a gain of 9.29% for VWO.
Over three years, IEMG compounded at +23.37% per year against +18.81% for VWO; over five years the annualized figures are +8.56% and +6.53% respectively. Across the full 14-year window we track, IEMG has the edge at +4.79% annualized vs +3.74%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IEMG has been the more volatile fund, with annualized monthly volatility of 16.4% compared with 15.6% for VWO. 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 -42.2% for IEMG and -40.3% for VWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IEMG charges 0.09% per year while VWO charges 0.06%. On a $10,000 position that is $9 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, IEMG currently yields 2.20% against 2.29% for VWO.
Holdings Overlap
At least 41.0% of IEMG's money is in holdings VWO also owns.
Stated as a floor: for VWO, our book for it covers 89.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
The two portfolios partly overlap.
1,508 positions in common, counted across the 2,808 positions we hold weights for in IEMG and 4,688 in VWO, against full books of 2,869 and 6,378.
Top Shared Holdings
| Stock | Weight in IEMG | Weight in VWO | Difference |
|---|---|---|---|
| 9988:HKAlibaba Group Holding Limited Ordinary Shares | 1.63% | 2.33% | 0.70% |
| 2454:TWMediaTek Inc ORD TWD10 | 1.48% | 1.31% | 0.17% |
| 2308:TWDelta Electronics Inc | 0.71% | 0.79% | 0.08% |
| 2317:TWHon Hai Precision Industry Co., Ltd. | 0.68% | 0.78% | 0.10% |
| HDFCBANK:MBHdfc Bank Ltd. | 0.59% | 0.75% | 0.16% |
| RELIANCE:MBReliance Industries Ltd | 0.54% | 0.77% | 0.23% |
| ICICIBANK:MBIcici Bank Ltd | 0.53% | 0.67% | 0.14% |
| 1398:HKIndustrial And Commercial Bank Of China Ltd Class H | 0.45% | 0.64% | 0.19% |
| 3711:TWAse Technology Holding Co Lt | 0.46% | 0.47% | 0.01% |
| BHARTIARTL:MBBharti Airtel Ltd | 0.38% | 0.53% | 0.15% |
41.0% of IEMG is already inside VWO.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IEMG or VWO?
IEMG has an expense ratio of 0.09% while VWO charges 0.06%. VWO is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, IEMG or VWO?
Over the past year IEMG returned +26.08% vs +11.95% for VWO, so IEMG leads on 1-year performance. Over the longest common window we track (14 years), IEMG annualized +4.79% vs +3.74% for VWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IEMG or VWO?
IEMG has been the more volatile fund at 16.4% annualized versus 15.6% for VWO. Worst drawdown: IEMG -42.2% vs VWO -40.3%.
Should I hold both IEMG and VWO?
IEMG and VWO have a monthly-return correlation of 0.98, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between IEMG and VWO?
At least 41.0% of IEMG's money is in holdings VWO also owns. Our book for VWO is partial, so the real figure is this or higher. They hold 1,508 positions in common, counted across the 2,808 positions we hold weights for in IEMG and 4,688 in VWO.
Which pays a higher dividend, IEMG or VWO?
IEMG yields 2.20% while VWO yields 2.29%, so VWO currently pays the higher dividend yield.
Is VWO better than IEMG?
VWO has a lower expense ratio. IEMG led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.98. Which one suits a particular account depends on what it is for. This is information, not a recommendation.