ETF Versus

IEMG vs VEA

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

Last updated: 2026-04-10

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 a moderate dividend yield of 2.49%. Launched in 2012, the fund has a 14-year track record.

AUM: $144.0B ER: 0.09% Yield: 2.49% 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 2.78%. Launched in 2007, the fund has a 19-year track record.

AUM: $217.2B ER: 0.03% Yield: 2.78% 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. Over the past year, IEMG has significantly outperformed with a 48.0% return vs 40.6%.

Key Metrics

Metric IEMG VEA
Expense Ratio 0.09% 0.03%
Dividend Yield 2.5% 2.8%
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 2022-07 2023-10 2025-01 2026-04
IEMG +15.3%
VEA +34.5%

Performance Comparison

Period IEMG VEA Difference
1 Month +2.68% +2.70% -0.02%
3 Months +4.57% +4.18% +0.39%
6 Months +12.30% +13.10% -0.80%
YTD +7.54% +7.02% +0.52%
1 Year +47.97% +40.64% +7.33%
3 Years +50.82% +48.42% +2.40%
5 Years +15.31% +34.49% -19.18%

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 18.3% 16.5%
Max Drawdown -38.5% -32.3%
Sharpe Ratio 0.00 0.17

Dividend Comparison

Metric IEMG VEA
Annual Dividend (per share) $1.85 $1.88
Dividend Yield 2.49% 2.78%
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/233011.69%
Samsung Electronics Co., Ltd.!krx/0059305.24%
Tencent Holdings Limited!hkg/07003.20%
SK hynix Inc.!krx/0006602.96%
Alibaba Group Holding Limited!hkg/99882.14%
China Construction Bank Corporation!hkg/09390.81%
Delta Electronics, Inc.!tpe/23080.79%
HDFC Bank Limited!nse/HDFCBANK0.77%
Reliance Industries Limited!nse/RELIANCE0.68%
Hon Hai Precision Industry Co., Ltd.!tpe/23170.61%

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.

Choose IEMG if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

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