What distinguishes developed international markets from emerging markets?

Developed international markets, represented by Fund A (IEFA), typically include established economies in Europe, Australasia, and the Far East, such as Japan, the United Kingdom, and Australia. These regions usually offer stable legal frameworks, mature financial systems and slower but steadier growth. In contrast, emerging markets, represented by Fund B (IEMG), cover developing economies in Asia, Latin America and Eastern Europe. These markets often present higher potential for rapid economic expansion but come with increased volatility, currency risk and less mature regulatory environments.

How do expense ratios affect net returns over time?

Expense ratios are annual fees deducted from the fund's assets to cover management costs. Fund A (IEFA) has a lower ratio at 0.07%, compared to Fund B (IEMG) at 0.09%. While the difference appears small, it compounds over time. On a $10,000 investment, the difference would cost $2 per year in additional fees. Lower expenses allow more of your investment return to remain within the fund, potentially leading to better net performance compared to the index over long periods.

What does net assets signify for these iShares products?

Net assets, or total value, refer to the aggregate market value of the securities held within the ETF. Both products are exceptionally large: Fund A (IEFA) holds $192.2 billion, while Fund B (IEMG) holds $161.8 billion. This high level of liquidity is generally favourable for investors as it facilitates easier trading of shares at prices closely aligned with the net asset value. However, the raw number indicates the product's size, not necessarily its future performance potential.

Which sectors are typically associated with these ETFs?

Specific sector weights are currently not available for comparison in the supplied data. Fund A (IEFA) is categorised as Foreign Large Blend, targeting large companies in developed international markets. Fund B (IEMG) falls under Diversified Emerging Mkts, targeting large and mid-sized companies in emerging economies. In developed markets, sectors like financials, industrials and healthcare are often heavily weighted. Conversely, emerging markets may have greater exposure to consumer discretionary, information technology, and industrials.

How do the dividend yields compare between IEFA and IEMG?

Fund A (IEFA) presents a dividend yield of 3.32%, which is higher than Fund B (IEMG) at 2.15%. Historically, developed international markets, captured by IEFA, have offered higher yields as their companies often mature and focus on distributing earnings. Emerging markets, represented by IEMG, often focus on reinvesting profits into growth and expansion, resulting in lower yields. When choosing between them, it is necessary to consider whether one prioritises income distribution or capital growth potential.

How do ETFs manage their underlying index?

Both funds track indices associated with the MSCI global benchmarks, though the exact index names are not available in the current data. These products generally follow a sampling or optimisation strategy. This means they hold a representative basket of stocks from the target index—such as large-cap companies in Europe and Asia for IEFA, and major players in China and India for IEMG—to mirror the underlying asset's risk and return profile, rather than buying every single constituent stock if not practical.

What is the typical goal fit for each fund?

Fund A (IEFA) is often associated with a goal of core developed market exposure, seeking stability and consistent dividend income. The large-cap nature of the developed world provides a defensive component. Fund B (IEMG) is typically associated with a growth-oriented goal. Emerging markets generally exhibit higher volatility, making them suitable for longer investment horizons and investors with a higher risk tolerance who seek potential outperformance through rapid economic development.

How similar are the top holdings of IEFA and IEMG?

Based on the provided data, there are no shared top-10 holdings between Fund A (IEFA) and Fund B (IEMG). This zero overlap confirms that the two products target distinct and mutually exclusive universes of companies. This distinction is valuable for investors seeking precise market allocation, as it suggests that holding both funds would provide separate, non-redundant exposure to developed versus emerging market companies, rather than duplicating the same assets.

How do market events influence developed versus emerging markets?

Developed markets, tracked by IEFA, often serve as a safe haven during global uncertainty, influenced by central bank policies in major Western economies. Conversely, IEMG is more sensitive to global commodity demand, shifts in foreign capital flows and geopolitical developments within regions like Asia and South America. While correlated, emerging markets tend to experience higher volatility and sharper drawdowns during periods of economic stress, but can also demonstrate stronger rebounds during global growth expansions.

Is the data current and what if figures are missing?

The data in this comparison is as of 22 September 2026. Several key figures, including the specific names of tracked indices, detailed top holdings and exact sector weightings, are currently marked as 'not available' in the supplied dataset. Investors should be aware that relying solely on the available metrics, such as expense ratios and yields, may not provide a complete picture. Further due diligence regarding the underlying assets of IEFA and IEMG is recommended.

IEFA vs IEMG

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

Compare IEFA and IEMG, iShares funds developed in 2012. We examine their 0.07% and 0.09% expense ratios, dividend yields, and market focus. Note that sector weights and top holdings are not available. This page helps you understand how each ETF tracks its respective market. Educational content, not financial advice.

Compare IEFA and IEMG, iShares funds developed in 2012. We examine their 0.07% and 0.09% expense ratios, dividend yields, and market focus. Note that sector weights and top holdings are not available....

Fund Snapshot

Key Fund Metrics

IEFA

Metric

IEMG

0.07%

Expense Ratio

0.09%

3.32%

Dividend Yield

2.15%

$192.23B

Net Assets

$161.78B

2,657

Holdings

2,925

Oct 18, 2012

Inception Date

Oct 18, 2012

–

Index Tracked

–

Foreign Large Blend

Fund Category

Diversified Emerging Mkts

IEFA costs about $2.00 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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IEFA vs IXUS

Compare IEFA and IXUS ETFs on fees, holdings, dividends and tracking. Both iShares funds have identical expense ratios. Educational content, not advice.

IEFA vs VEA

Compare IEFA and VEA foreign large blend ETFs. Review expense ratios, dividend yields, net assets and top holdings to assess fund differences.

EMGF vs IEMG

Compare EMGF and IEMG on fees, yield and assets. EMGF charges 0.26%; IEMG 0.09%. IEMG holds $161.8 billion; EMGF $1.9 billion. Review tracking details.

Investment Analysis

IEFA

Pros

The expense ratio is low at 0.07 percent.
The fund is very large with 192.2 billion dollars in net assets.
The dividend yield stands at 3.32 percent.

Considerations

The tracked index is not available in the supplied data.
Top holdings are not available in the supplied data.
Sector weights are not available in the supplied data.

IEMG

Pros

The expense ratio is competitive at 0.09 percent.
The fund is very large with 161.8 billion dollars in net assets.
The dividend yield stands at 2.15 percent.

Considerations

The tracked index is not available in the supplied data.
Top holdings are not available in the supplied data.
Sector weights are not available in the supplied data.

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About IEFA and IEMG

IEFA (IEFA)

The iShares Core MSCI EAFE ETF (IEFA) offers investors a convenient way to access developed markets outside the United States and Canada. By holding a broad basket of over 2,600 stocks, this exchange-traded fund aims to track the performance of large and mid-cap companies across Europe, Australasia, and the Far East. It serves as a foundational tool for diversifying portfolios beyond domestic UK or US investments, potentially reducing concentration risk. With a low expense ratio of 0.07%, it remains cost-efficient for long-term holding. The fund also generates income through dividends, offering a yield of approximately 3.32%. Investors should note that while it provides exposure to major global economies, values and returns are not guaranteed. Currency fluctuations and differing economic conditions in these regions can impact performance. As with any investment, it is important to consider your own financial circumstances and risk tolerance before investing.

IEMG (IEMG)

iShares Core MSCI Emerging Markets ETF (IEMG) provides broad exposure to equities in emerging-market countries by tracking the MSCI Emerging Markets Investable Market Index. It includes large-, mid- and small-cap companies across a wide range of economies, offering diversified access to fast-growing regions that can complement developed-market holdings. As an ETF, IEMG trades like a stock on exchanges, with intraday liquidity and market pricing. Investors should weigh potential benefits—diversification and emerging-market growth prospects—against distinct risks: higher volatility, political and currency risk, and regional liquidity differences. Performance can fluctuate materially and past performance is no guarantee of future returns. This information is for general educational purposes only and does not constitute personal investment advice; suitability depends on individual circumstances and investors should consult a financial adviser if unsure.

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