IEMG vs VTI
IEMG vs VTI
iShares Core MSCI Emerging Markets ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. IEMG delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | IEMG | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $149.8B | $663.5B | |
| Dividend Yield | 2.17% | 1.07% | |
| Holdings | 2,869 | 3,543 | |
| YTD Return | +16.86% | +14.20% | |
| 1Y Return | +33.41% | +24.16% | |
| 3Y Return (annualized) | +20.05% | +21.12% | |
| 5Y Return (annualized) | +7.50% | +12.37% | |
| Volatility (annualized) | 16.4% | 15.3% | |
| Max Drawdown | -42.2% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 18, 2012 | May 24, 2001 |
IEMG vs VTI Performance
iShares Core MSCI Emerging Markets ETF (IEMG) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IEMG returned +33.41% while VTI returned +24.16%. Year to date, IEMG is up 16.86% versus a gain of 14.20% for VTI.
Over three years, IEMG compounded at +20.05% per year against +21.12% for VTI; over five years the annualized figures are +7.50% and +12.37% respectively. Across the full 14-year window we track, VTI has the edge at +8.14% annualized vs +4.66%. 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 15.3% for VTI. 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 -56.6% for VTI. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IEMG charges 0.09% per year while VTI charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, IEMG currently yields 2.17% against 1.07% for VTI.
Holdings Overlap
IEMG and VTI share 1 holdings out of 3936 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IEMG | Weight in VTI | Difference |
|---|---|---|---|
| MEG | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
Which is cheaper, IEMG or VTI?
IEMG has an expense ratio of 0.09% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, IEMG or VTI?
Over the past year IEMG returned +33.41% vs +24.16% for VTI, so IEMG leads on 1-year performance. Over the longest common window we track (14 years), IEMG annualized +4.66% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, IEMG or VTI?
IEMG has been the more volatile fund at 16.4% annualized versus 15.3% for VTI. Worst drawdown: IEMG -42.2% vs VTI -56.6%.
Should I hold both IEMG and VTI?
IEMG and VTI have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IEMG and VTI?
IEMG and VTI share 1 common holdings with a 0.0% weight overlap. Combined, they hold 3936 unique securities.
Which pays a higher dividend, IEMG or VTI?
IEMG yields 2.17% while VTI yields 1.07%, so IEMG currently pays the higher dividend yield.
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