What is the fee difference between IEMG and VXUS?

IEMG charges 0.09% a year and VXUS charges 0.05%. On $10,000 invested that is about $9 for IEMG and $5 for VXUS, a gap of $4 a year. Both are low-cost funds, so the fee difference is small; the key distinction is that IEMG targets emerging markets only while VXUS covers all non-US markets.

What indexes do IEMG and VXUS track?

IEMG tracks the MSCI Emerging Markets IMI, covering large, mid and small-cap stocks in emerging economies, with 2,915 holdings. VXUS tracks the FTSE Global All Cap ex US index, which includes developed markets such as Japan, the UK and Canada as well as emerging markets, for 8,860 holdings.

How much do IEMG and VXUS overlap?

Four names appear in both top ten lists: Taiwan Semiconductor at 13.51% in IEMG versus 3.97% in VXUS, Samsung Electronics at 6.16% versus 1.90%, SK hynix at 5.03% versus 1.46%, and Tencent at 2.40% versus 0.78%. VXUS holds these at lower weights because developed market names like ASML, HSBC and Roche take up space.

How do the dividend yields compare?

VXUS yields 2.28% and IEMG yields 2.16%, a small gap. On $10,000 that is roughly $228 a year from VXUS versus $216 from IEMG before taxes. Both benefit from higher payout ratios common outside the US, and both distribute dividends that can vary with currency movements and company decisions.

Which fund suits which investor?

IEMG suits investors who already hold developed international markets, or who want to set their own emerging markets weight rather than accept the index default. VXUS suits investors who want the entire non-US stock market in one fund with no need to manage regional allocations. VXUS is the simpler one-fund solution.

How do IEMG and VXUS compare on size?

The two are close in size: IEMG has $161.78 billion in net assets and VXUS has $164.04 billion. Both are core holdings from major issuers, BlackRock and Vanguard, and both trade actively on US exchanges. Retail investors should find either straightforward to buy and sell in normal quantities.

Which fund is riskier?

IEMG concentrates entirely in emerging markets, which have historically been more volatile than developed markets and carry higher political and currency risk. VXUS spreads across developed and emerging economies, so its swings are generally smaller. Both are exposed to currency moves against the US dollar.

What about taxes on international dividends?

Dividends from foreign companies in both funds may have withholding tax deducted before reaching shareholders, and your home country may tax distributions again depending on account type and treaties. Emerging market withholding rates vary widely by country. Check the rules that apply to you or consult a tax adviser.

Can I hold both IEMG and VXUS?

Yes, but recognize that VXUS already includes emerging markets, so adding IEMG increases your emerging markets weight above the index default. Investors do this deliberately when they want a larger tilt toward countries like Taiwan, Korea, China and India. Check the combined exposure to Taiwan Semiconductor, which is large in both.

IEMG vs VXUS

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

iShares Core MSCI Emerging Markets ETF (IEMG) holds 2,915 emerging market stocks for 0.09% a year, while Vanguard Total International Stock ETF (VXUS) holds 8,860 non-US stocks for 0.05% and yields 2.28% versus 2.16%. Both hold Taiwan Semiconductor, Samsung and Tencent. IEMG suits investors targeting emerging markets; VXUS suits those who want all non-US stocks. Educational content, not financial advice.

iShares Core MSCI Emerging Markets ETF (IEMG) holds 2,915 emerging market stocks for 0.09% a year, while Vanguard Total International Stock ETF (VXUS) holds 8,860 non-US stocks for 0.05% and yields 2....

Fund Snapshot

Key Fund Metrics

IEMG

Metric

VXUS

0.09%

Expense Ratio

0.05%

2.16%

Dividend Yield

2.28%

$161.78B

Net Assets

$164.04B

2,915

Holdings

8,860

Oct 18, 2012

Inception Date

Jan 26, 2011

MSCI Emerging Markets IMI

Index Tracked

FTSE Global All Cap x US

Diversified Emerging Markets

Fund Category

Foreign Large Blend

VXUS costs about $4.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	IEMG	VXUS
TPE: 2330Taiwan Semiconductor Manufacturing Company Limited	13.51%	3.97%
KRX: 005930Samsung Electronics Co., Ltd.	6.16%	1.90%
KRX: 000660SK hynix Inc.	5.03%	1.46%
HKG: 0700Tencent Holdings Limited	2.40%	0.78%

Discover More Comparisons

IEMG vs SCHE

Compare IEMG and SCHE ETFs on fees, dividends, and holdings. IEMG charges 0.09% yield 2.15%; SCHE charges 0.06% yield 2.54%. See which fits research.

IEMG vs SPEM

Compare IEMG and SPEM on fees, holdings, dividends and tracking. IEMG has 0.09% expenses, SPEM 0.07%. Check net assets and yields before deciding.

IEMG vs VWO

Compare IEMG and VWO fees, dividends, holdings, and tracking. IEMG yields 2.15%, VWO 1.99%. Expense ratios 0.09% and 0.06%. Data as of Sep 2026.

Investment Analysis

IEMG

Pros

Focused exposure to emerging markets across 2,915 holdings
Taiwan Semiconductor at 13.51% and Samsung at 6.16% lead the portfolio
Dividend yield of 2.16% and net assets of $161.78 billion

Considerations

Expense ratio of 0.09% is above VXUS's 0.05%
No exposure to developed markets such as Europe, Japan or Canada
Heavy weight in a single stock, with Taiwan Semiconductor at 13.51%

VXUS

Pros

Lower expense ratio of 0.05%, or $5 a year per $10,000 invested
Covers 8,860 stocks in both developed and emerging markets outside the US
Slightly higher dividend yield of 2.28% versus 2.16%

Considerations

Emerging markets are only a portion of the fund, diluting that exposure
Returns depend on many currencies moving against the US dollar
Top holding Taiwan Semiconductor at 3.97% still adds concentration in one market

Related Market Insights

Banking On Emerging Market Wealth: The Financial Services Goldmine

Discover the goldmine in emerging market financial services. Invest in global institutions benefiting from expanding wealth & sophisticated banking demand in high-growth economies. Explore Nemes on Nemo.

Aimee Silverwood | Financial Analyst

31 July 2025

Read Insight

Related Market Insights

Banking On Emerging Market Wealth: The Financial Services Goldmine

Discover the goldmine in emerging market financial services. Invest in global institutions benefiting from expanding wealth & sophisticated banking demand in high-growth economies. Explore Nemes on Nemo.

Aimee Silverwood | Financial Analyst

31 July 2025

Read Insight

About IEMG and VXUS

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.

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.

Which Baskets Do They Appear In?

Banking On Emerging Market Wealth

Standard Chartered's impressive profit growth, driven by its wealth management success in emerging markets, highlights a significant investment opportunity. This theme focuses on other global financial institutions that are similarly positioned to capitalize on the expanding wealth and demand for sophisticated banking services in high-growth economies.

Published: 31 July 2025

Explore Basket