What do the terms 'emerging markets' and 'total international stock' mean in the context of EEM and VXUS?

MSCI Emerging Markets ETF (EEM) focuses on economies considered emerging, such as China and India. These regions often have high growth potential but carry higher volatility. Vanguard Total International Stock ETF (VXUS) covers a broader range of developed and emerging markets outside the United States, including Europe and Japan. This difference defines their scope: one is a specialised subset of the global equity market, while the other is a comprehensive international basket.

How do the expense ratios of EEM and VXUS compare, and why does this matter for long-term investing?

EEM has an expense ratio of 0.72%, while VXUS charges 0.05%. This 0.67 percentage point difference impacts net returns. A higher expense ratio means a greater portion of the fund's assets is consumed by management fees annually. Over time, this can significantly reduce the compounded growth of an investment compared to a lower-cost alternative, assuming all other factors remain equal.

Are EEM and VXUS correlated with the same global market sectors?

While both funds include international equities, their sector exposures differ. EEM is concentrated in emerging markets, often with heavier weights in technology and consumer discretionary within developing nations. VXUS includes developed markets like Europe and Japan, offering broader sector diversification across industries such as financials and industrials. They are not identical, though they may exhibit some correlation during periods of global economic expansion or contraction.

How is the dividend yield of these funds generated, and what does it indicate?

The dividend yield shown for each ETF represents the total income distributed by the underlying companies relative to the fund's current price. EEM shows a yield of 1.62%, while VXUS displays 2.28%. A higher yield generally suggests the underlying holdings pay out more cash per dollar invested, or that the share price is lower relative to the payout. This metric helps investors understand potential income streams, though it does not guarantee future distributions.

What is the difference in track record between EEM and VXUS?

EEM has been available since 7 April 2003, giving it a longer historical track record for investors to analyse. VXUS was launched on 26 January 2011, meaning it has a shorter period of operational history. Investors sometimes review track records to understand how a fund performed during various market cycles, but past performance does not always predict how the fund will behave in future market conditions.

Which fund has more net assets, and how might that affect liquidity?

VXUS holds significantly more net assets, with $164.0 billion, compared to $31.3 billion for EEM. In exchange-traded funds, larger net assets typically correlate with higher liquidity. This often means tighter bid-ask spreads and easier execution for investors buying or selling shares. While EEM is still a substantial fund, the sheer size of VXUS generally provides greater daily trading volume and market depth.

Can you compare the specific holdings or top companies in EEM and VXUS?

Top holdings data is not available for VXUS. For EEM, the only listed top holding is NU (Nu Holdings Ltd.) at 0.40%. Without complete data for VXUS, a direct comparison is not possible. This limits the ability to assess exact company concentration risks for VXUS, whereas EEM’s specific company exposure is only partially visible through this single data point.

What types of data are unavailable in this comparison?

For EEM, sector weight data and its specific index tracked are unavailable. For VXUS, both top holdings and sector weight data are missing, as well as the index tracked. These gaps prevent a detailed analysis of industry diversification or specific corporate concentration for VXUS, and limit the transparency of EEM's sector allocation compared to funds with fully reported data.

How do ETF dividends work in practice for these funds?

Unlike individual stocks that may pay dividends quarterly, ETFs like EEM and VXUS collect dividends from all underlying companies throughout the year. The fund then pools this cash and typically distributes it to ETF shareholders on a regular schedule, often quarterly or annually. This allows investors to receive a consolidated income stream from hundreds or thousands of companies without managing multiple individual payment dates.

EEM vs VXUS

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare iShares MSCI Emerging Markets ETF (EEM) and Vanguard Total International Stock ETF (VXUS). This page examines expense ratios, dividend yields, net assets, and how each fund tracks its target market. EEM charges 0.72% while VXUS charges 0.05%. Educational content, not financial advice.

Compare iShares MSCI Emerging Markets ETF (EEM) and Vanguard Total International Stock ETF (VXUS). This page examines expense ratios, dividend yields, net assets, and how each fund tracks its target m...

Fund Snapshot

Key Fund Metrics

EEM

Metric

VXUS

0.72%

Expense Ratio

0.05%

1.62%

Dividend Yield

2.28%

$31.27B

Net Assets

$164.04B

1,214

Holdings

8,860

Apr 7, 2003

Inception Date

Jan 26, 2011

–

Index Tracked

–

Diversified Emerging Mkts

Fund Category

Foreign Large Blend

VXUS costs about $67.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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EEM vs EEMV

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Investment Analysis

EEM

Pros

EEM has a longer track record dating back to 2003 providing substantial historical data for analysis.
The fund’s inception date predates many emerging market ETFs making it one of the older options available.
NU represents a specific emerging market holding with a weight of 0.40% offering focused exposure to that company.

Considerations

An expense ratio of 0.72% is significantly higher than the industry average for broad emerging market funds.
The dividend yield of 1.62% is lower than the international stock fund alternative in this comparison.
Sector weight data is not available for EEM limiting transparency into its specific industry allocations.

VXUS

Pros

VXUS features a low expense ratio of 0.05% reducing ongoing costs for investors substantially.
A dividend yield of 2.28% is higher than the emerging markets fund in this comparison.
The net assets of $164.0 billion indicate high liquidity and large scale for the fund.

Considerations

Top holdings data is not available for VXUS preventing assessment of specific company concentration risks.
Sector weight data is not available for VXUS limiting insight into its broad industry diversification.
Inception date of 2011 means a shorter track record compared to the older emerging markets fund.

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About EEM and VXUS

EEM (EEM)

EEM is the iShares MSCI Emerging Markets ETF, designed to give investors broad exposure to large- and mid-cap equity markets in emerging economies. The fund seeks to track the MSCI Emerging Markets Index, offering a single-line route to companies across China, Taiwan, India, Brazil and other developing markets. Investors should note ETFs can have tracking error versus their index and returns are not guaranteed. EEM is typically used for diversified emerging-market equity exposure, tactical allocation or as a complement to developed-market holdings. Key considerations include higher volatility, currency and political risk relative to developed markets, sector and country concentration (for example, a heavy weight to specific countries or sectors), and the impact of commodity cycles. This information is educational and not personalised advice; suitability depends on an investor’s objectives, time horizon and risk tolerance. Always consider reading the fund’s prospectus and, if needed, consult a regulated financial adviser.

VXUS (VXUS)

Vanguard Total International Stock ETF (VXUS) offers investors broad exposure to non‑US equities across developed and emerging markets. The fund tracks a global index that excludes the United States and holds thousands of stocks spanning large-, mid- and small-cap companies. It is structured as a passive, market‑capitalisation‑weighted ETF, which aims to replicate international equity market performance while keeping trading simplicity and diversification benefits. VXUS is typically unhedged to sterling or other home currencies, so returns can be affected by currency movements as well as underlying stock performance. Investors should note that, like all equity funds, values can fall as well as rise and past performance does not guarantee future results. This summary provides general, educational information and is not personalised investment advice; suitability depends on an individual’s circumstances, risk tolerance and investment horizon.

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