IEMG vs VXUS
iShares Core MSCI Emerging Markets ETF vs Vanguard Total International Stock ETF
Which is better, IEMG or VXUS?
Each has led over a different period.
VXUS has a lower expense ratio. IEMG led over 1Y and 3Y, VXUS over 5Y and the full window. The two have moved almost in lockstep, correlation 0.90.
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 | VXUS |
|---|---|---|
| Expense Ratio | 0.09% | 0.05%Best |
| AUM | $160.6B | $158.1B |
| Dividend Yield | 2.20% | 2.51% |
| Holdings | 2,869 | 8,747 |
| YTD Return | +20.63%Best | +14.48% |
| 1Y Return | +30.66%Best | +22.28% |
| 3Y Return (annualized) | +22.05%Best | +20.00% |
| 5Y Return (annualized) | +7.95% | +8.91%Best |
| Volatility (annualized) | 16.4% | 14.3%Best |
| Max Drawdown | -42.2% | -39.9%Best |
| $10,000 over 5 years | $14,659 | $15,323Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Oct 18, 2012 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 22, 2012 to Sep 11, 2026 (13.9 years).
IEMG vs VXUS 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 13.9 years both funds cover.
IEMG vs VXUS Performance
iShares Core MSCI Emerging Markets ETF (IEMG) is an ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year IEMG returned +30.66% while VXUS returned +22.28%. Year to date, IEMG is up 20.63% versus a gain of 14.48% for VXUS.
Over three years, IEMG compounded at +22.05% per year against +20.00% for VXUS; over five years the annualized figures are +7.95% and +8.91% respectively. Across the full 14-year window we track, VXUS has the edge at +6.10% annualized vs +4.87%.
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 14.3% 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 what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.90. 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 2.20% against 2.51% for VXUS.
Holdings Overlap
At least 51.8% of IEMG's money is in holdings VXUS also owns.
Stated as a floor: for VXUS, our book for it covers 87.7% 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.
1,714 positions in common, counted across the 2,795 positions we hold weights for in IEMG and 8,091 in VXUS, against full books of 2,869 and 8,747.
Top Shared Holdings
| Stock | Weight in IEMG | Weight in VXUS | Difference |
|---|---|---|---|
| 000660:KRSk Hynix | 4.50% | 2.17% | 2.33% |
| 9988:HKAlibaba Group Holding Limited Ordinary Shares | 1.99% | 0.49% | 1.50% |
| 2454:TWMediatek, Inc. | 1.27% | 0.44% | 0.83% |
| 2308:TWDelta Electronics Inc | 0.72% | 0.27% | 0.45% |
| 2317:TWHon Hai Precision Industry Co., Ltd. | 0.70% | 0.22% | 0.48% |
| HDFCBANK:MBHdfc Bank Ltd | 0.65% | 0.21% | 0.44% |
| RELIANCE:MBReliance Industries Ltd | 0.61% | 0.20% | 0.41% |
| ICICIBANK:MBIcici Bank Ltd Ord Inr2 (demat) | 0.59% | 0.17% | 0.42% |
| 402340:KRSK Square Co. Ltd. | 0.51% | 0.22% | 0.29% |
| 1398:HKIcbc Ltd. | 0.45% | 0.15% | 0.30% |
51.8% of IEMG is already inside VXUS.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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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, by $4 a year on a $10,000 investment.
Which performed better, IEMG or VXUS?
Over the past year IEMG returned +30.66% vs +22.28% for VXUS, so IEMG leads on 1-year performance. Over the longest common window we track (14 years), IEMG annualized +4.87% vs +6.10% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IEMG or VXUS?
IEMG has been the more volatile fund at 16.4% annualized versus 14.3% 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 0.90, 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 VXUS?
At least 51.8% of IEMG's money is in holdings VXUS also owns. Our book for VXUS is partial, so the real figure is this or higher. They hold 1,714 positions in common, counted across the 2,795 positions we hold weights for in IEMG and 8,091 in VXUS.
Which pays a higher dividend, IEMG or VXUS?
IEMG yields 2.20% while VXUS yields 2.51%, so VXUS currently pays the higher dividend yield.
Is VXUS better than IEMG?
VXUS has a lower expense ratio. IEMG led over 1Y and 3Y, VXUS over 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. Which one suits a particular account depends on what it is for. This is information, not a recommendation.