IEMG vs VWO
IEMG vs VWO
iShares Core MSCI Emerging Markets ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VWO has a lower expense ratio. IEMG delivered stronger 1-year returns. VWO offers more diversification with 3982 holdings.
Side-by-Side Comparison
| Metric | IEMG | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.06% | |
| AUM | $149.8B | $122.3B | |
| Dividend Yield | 2.17% | 2.37% | |
| Holdings | 2,869 | 6,334 | |
| YTD Return | +15.91% | +9.29% | |
| 1Y Return | +33.39% | +22.13% | |
| 3Y Return (annualized) | +19.25% | +16.34% | |
| 5Y Return (annualized) | +7.36% | +6.45% | |
| Volatility (annualized) | 16.4% | 20.1% | |
| Max Drawdown | -42.2% | -68.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 18, 2012 | Mar 4, 2005 |
IEMG vs VWO Performance
iShares Core MSCI Emerging Markets ETF (IEMG) is a ETF from iShares by BlackRock (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year IEMG returned +33.39% while VWO returned +22.13%. Year to date, IEMG is up 15.91% versus a gain of 9.29% for VWO.
Over three years, IEMG compounded at +19.25% per year against +16.34% for VWO; over five years the annualized figures are +7.36% and +6.45% respectively. Across the full 14-year window we track, VWO has the edge at +4.95% annualized vs +4.60%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 16.4% for IEMG. 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 -68.3% for VWO. 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 0.98. 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 2.17% against 2.37% for VWO.
Holdings Overlap
IEMG and VWO share 548 holdings out of 4588 unique holdings combined, representing a 41.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IEMG | Weight in VWO | Difference |
|---|---|---|---|
| 2330:TW | 13.43% | 12.61% | 0.82% |
| 9988:HK | 1.45% | 2.71% | 1.26% |
| 2454:TW | 1.32% | 0.76% | 0.56% |
| 2308:TW | Pro | Pro | Pro |
| RELIANCE:MB | Pro | Pro | Pro |
| 2317:TW | Pro | Pro | Pro |
| ICICIBANK:MB | Pro | Pro | Pro |
| PDD | Pro | Pro | Pro |
| 1398:HK | Pro | Pro | Pro |
| VALE3:BV | Pro | Pro | Pro |
See all 10 holdings IEMG shares with VWO Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
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. On a $10,000 investment, that is $3 per year of difference.
Which performed better, IEMG or VWO?
Over the past year IEMG returned +33.39% vs +22.13% for VWO, so IEMG leads on 1-year performance. Over the longest common window we track (14 years), IEMG annualized +4.60% vs +4.95% for VWO. Past performance does not guarantee future results.
Which is riskier, IEMG or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 16.4% for IEMG. Worst drawdown: IEMG -42.2% vs VWO -68.3%.
Should I hold both IEMG and VWO?
IEMG and VWO have a monthly-return correlation of 0.98, 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 VWO?
IEMG and VWO share 548 common holdings with a 41.4% weight overlap. Combined, they hold 4588 unique securities.
Which pays a higher dividend, IEMG or VWO?
IEMG yields 2.17% while VWO yields 2.37%, so VWO currently pays the higher dividend yield.
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