ETF Versus

IEMG vs VEA

iShares Core MSCI Emerging Markets ETF vs Vanguard FTSE Developed Markets Index Fund ETF Shares

Last updated: 2026-04-02

IEMG iShares

iShares Core MSCI Emerging Markets ETF (IEMG) is an exchange-traded fund issued by iShares that provides exposure to stocks in emerging market economies with higher growth potential. It charges a low expense ratio of 0.09%. The fund offers an attractive dividend yield of 2.63%. Launched in 2012, the fund has a 14-year track record.

AUM: $132.2B ER: 0.09% Yield: 2.63% Since: Oct 18, 2012
VEA Vanguard

Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA) is an exchange-traded fund issued by Vanguard that provides exposure to equities in developed international markets outside the U.S.. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 2.88%. Launched in 2007, the fund has a 19-year track record.

AUM: $198.8B ER: 0.03% Yield: 2.88% Since: Jul 20, 2007

Quick Verdict

VEA has a slightly lower expense ratio (0.03% vs 0.09%), saving about $119 per $10,000 over 10 years. IEMG has edged ahead over the past year (29.6% vs 27.7%).

Key Metrics

Metric IEMG VEA
Expense Ratio 0.09% 0.03%
Dividend Yield 2.6% 2.9%
Fund Family iShares Vanguard
Category Emerging Markets International Developed

Performance Chart

Indexed to 100 at start (5-year comparison)

65 80 95 110 125 140 2021-04 2022-06 2023-09 2024-12 2026-04
IEMG +7.7%
VEA +29.0%

Performance Comparison

Period IEMG VEA Difference
1 Month -6.83% -5.61% -1.22%
3 Months +1.86% +3.07% -1.21%
6 Months +5.01% +6.68% -1.67%
YTD +1.86% +3.07% -1.21%
1 Year +29.64% +27.70% +1.94%
3 Years +43.63% +43.04% +0.59%
5 Years +7.71% +28.99% -21.28%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IEMG Fees VEA Fees You Save
$10.000 10 years $179 $60 $119
$10.000 20 years $771 $258 $512
$10.000 30 years $2.486 $835 $1.650
$50.000 10 years $896 $299 $597
$50.000 30 years $12.428 $4.176 $8.252
$100.000 30 years $24.855 $8.352 $16.503

Risk Metrics

Based on 5 years of daily returns

Metric IEMG VEA
Annualized Volatility 18.1% 16.4%
Max Drawdown -38.5% -32.3%
Sharpe Ratio -0.08 0.12

Dividend Comparison

Metric IEMG VEA
Annual Dividend (per share) $1.85 $1.88
Dividend Yield 2.63% 2.88%
Distribution Frequency Semi-Annual or Annual Quarterly

Top Holdings

2 of top 9 holdings overlap (22% overlap in top holdings)

IEMG Top Holdings

NameWeight
Taiwan Semiconductor Manufacturing Company Limited!tpe/233011.60%
Samsung Electronics Co., Ltd.!krx/0059304.66%
Tencent Holdings Limited!hkg/07003.32%
SK hynix Inc.!krx/0006602.75%
Alibaba Group Holding Limited!hkg/99882.22%
China Construction Bank Corporation!hkg/09390.82%
Delta Electronics, Inc.!tpe/23080.76%
HDFC Bank Limited!nse/HDFCBANK0.75%
Reliance Industries Limited!nse/RELIANCE0.71%
Hon Hai Precision Industry Co., Ltd.!tpe/23170.65%

VEA Top Holdings

NameWeight
Samsung Electronics Co., Ltd.!krx/0059302.18%
ASML Holding N.V.!ams/ASML1.77%
SK hynix Inc.!krx/0006601.24%
Roche Holding AGROC1.L1.03%
Novartis AG!swx/NOVN1.00%
HSBC Holdings plc!lon/HSBA0.99%
AstraZeneca PLC!lon/AZN0.98%
Nestlé S.A.!swx/NESN0.86%
Toyota Motor Corporation!tyo/72030.80%

Which One Should You Choose?

Choose VEA if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

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