IEMG vs VXUS
iShares Core MSCI Emerging Markets ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. IEMG delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | IEMG | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.05% | |
| AUM | $149.8B | $156.5B | |
| Dividend Yield | 2.17% | 2.60% | |
| Holdings | 2,869 | 8,747 | |
| YTD Return | +16.71% | +14.19% | |
| 1Y Return | +33.72% | +27.38% | |
| 3Y Return (annualized) | +20.67% | +19.53% | |
| 5Y Return (annualized) | +7.39% | +9.03% | |
| Volatility (annualized) | 16.4% | 15.1% | |
| Max Drawdown | -42.2% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 18, 2012 | Jan 26, 2011 |
IEMG vs VXUS Performance
iShares Core MSCI Emerging Markets ETF (IEMG) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year IEMG returned +33.72% while VXUS returned +27.38%. Year to date, IEMG is up 16.71% versus a gain of 14.19% for VXUS.
Over three years, IEMG compounded at +20.67% per year against +19.53% for VXUS; over five years the annualized figures are +7.39% and +9.03% respectively. Across the full 14-year window we track, VXUS has the edge at +4.83% annualized vs +4.65%. 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 15.1% 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 -42.2% for IEMG and -39.9% for VXUS. 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 0.91. 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 VXUS charges 0.05%. On a $10,000 position that is $9 vs $5 annually, a gap of $4 per year that compounds over a long holding period. On income, IEMG currently yields 2.17% against 2.60% for VXUS.
Holdings Overlap
IEMG and VXUS share 711 holdings out of 8304 unique holdings combined, representing a 16.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IEMG | Weight in VXUS | Difference |
|---|---|---|---|
| 2330:TW | 13.43% | 3.41% | 10.02% |
| 000660:KR | 6.00% | 0.90% | 5.10% |
| 9988:HK | 1.45% | 0.73% | 0.72% |
| 2454:TW | Pro | Pro | Pro |
| 2308:TW | Pro | Pro | Pro |
| 2317:TW | Pro | Pro | Pro |
| RELIANCE:MB | Pro | Pro | Pro |
| ICICIBANK:MB | Pro | Pro | Pro |
| 402340:KR | Pro | Pro | Pro |
| 1398:HK | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, IEMG or VXUS?
IEMG has an expense ratio of 0.09% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, IEMG or VXUS?
Over the past year IEMG returned +33.72% vs +27.38% for VXUS, so IEMG leads on 1-year performance. Over the longest common window we track (14 years), IEMG annualized +4.65% vs +4.83% for VXUS. Past performance does not guarantee future results.
Which is riskier, IEMG or VXUS?
IEMG has been the more volatile fund at 16.4% annualized versus 15.1% for VXUS. Worst drawdown: IEMG -42.2% vs VXUS -39.9%.
Should I hold both IEMG and VXUS?
IEMG and VXUS have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between IEMG and VXUS?
IEMG and VXUS share 711 common holdings with a 16.1% weight overlap. Combined, they hold 8304 unique securities.
Which pays a higher dividend, IEMG or VXUS?
IEMG yields 2.17% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.
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