IEMG vs VWO Stock Comparison: AI Score, Valuation, Performance and Upside
IEMG and VWO are both low-cost core emerging market ETFs providing nearly identical EM exposure at minimal cost (0.09% vs 0.08%). The primary composition difference is South Korea — IEMG includes it (MSCI considers Korea EM), VWO excludes it (FTSE considers Korea developed). The 1 basis point cost difference is negligible. The Korea inclusion/exclusion is the key decision factor.
IEMG vs VWO is the MSCI EM benchmark including South Korea at 0.09% (IEMG) versus the FTSE EM benchmark excluding South Korea at 0.08% (VWO) — one basis point cost difference and South Korea inclusion is the entire differentiation between these two nearly identical low-cost emerging market ETFs.
VWO holds the edge across 4 of 5 key metrics in this comparison. IEMG has delivered stronger 1-year price return (+27.22% vs +13.69% for VWO).
- want MSCI EM index tracking including South Korea (Samsung, SK Hynix, POSCO, Hyundai) as part of their EM allocation
- use iShares ETFs across their portfolio and prefer IEMG as the iShares core EM product for portfolio consolidation
- value MSCI EM as the institutional benchmark for emerging markets reporting and benchmarking requirements
- are comfortable with 0.09% vs VWO's 0.08% as an immaterial cost difference given identical practical exposure
- prefer Vanguard's EM ETF excluding South Korea (per FTSE's developed market classification of Korea)
- value Vanguard's structural cost minimization at 0.08% — the cheapest EM ETF available from major providers
- use Vanguard products across their portfolio for consistency and Vanguard's investor-owned structural advantages
- are comfortable with Korea exclusion meaning IEMG and VWO perform differently during Korean equity-specific market movements
| Metric | IEMG | VWO |
|---|---|---|
| ETF scorei | 78.0 | 63.0 |
| Latest closei | $81.66 | $60.01 |
| 1M returni | +1.35% | +0.14% |
| 6M returni | +20.40% | +14.53% |
| 1Y returni | +27.22% | +13.69% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | IEMG | VWO |
|---|---|---|
| 1Y ago | $13.05K (+30.5%) started 2025-09-18 | $11.69K (+16.9%) started 2025-09-18 |
| 5Y ago | $18K (+80.0%) started 2021-09-20 | $16.64K (+66.4%) started 2021-09-20 |
| 10Y ago | $32.58K (+225.8%) started 2016-09-19 | $29.24K (+192.4%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | IEMG | VWO |
|---|---|---|
| Expense ratioi | 0.09% | 0.06% |
| Total assets (AUM)i | $160.9B | $168.36B |
| Dividend yieldi | 2.20% | 2.29% |
| Trailing P/Ei | 14.32 | 15.79 |
| Betai | 0.77 | 0.64 |
| 52-week change | 27.22% | 13.69% |
| Metric | IEMG | VWO |
|---|---|---|
| 1Y returni | +27.22% | +13.69% |
| 6M returni | +20.40% | +14.53% |
| 1M returni | +1.35% | +0.14% |
| 1Y Sharpe ratio | 0.93 | 0.56 |
| Betai | 0.77 | 0.64 |
| Dividend yieldi | 2.20% | 2.29% |
| 5Y CAGR | +9.03% | +7.03% |
Over the past year, IEMG and VWO have moved strongly in the same direction (correlation of 0.95), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | IEMG | VWO |
|---|---|---|---|
| 1Y | Growthi | +27.22% | +13.69% |
| CAGRi | +27.24% | +13.70% | |
| Volatilityi | 24.34% | 17.60% | |
| Sharpe ratioi | 0.93 | 0.56 | |
| Sortino ratioi | 1.31 | 0.80 | |
| Max drawdowni | 13.78% | 11.17% | |
| Current drawdowni | 5.05% | 2.14% | |
| Avg drawdowni | 3.59% | 2.50% | |
| Ulcer Indexi | 4.95% | 3.49% | |
| Max daily dropi | 6.40% | 3.78% | |
| Max wkly dropi | 8.17% | 6.25% | |
| 5Y | Growthi | +53.99% | +40.39% |
| CAGRi | +9.03% | +7.03% | |
| Volatilityi | 19.34% | 17.46% | |
| Sharpe ratioi | 0.31 | 0.22 | |
| Sortino ratioi | 0.45 | 0.32 | |
| Max drawdowni | 32.66% | 30.20% | |
| Current drawdowni | 5.05% | 2.14% | |
| Avg drawdowni | 11.27% | 10.23% | |
| Ulcer Indexi | 14.08% | 12.92% | |
| Max daily dropi | 6.40% | 5.60% | |
| Max wkly dropi | 11.94% | 12.16% | |
| 10Y | Growthi | +139.03% | +113.13% |
| CAGRi | +9.11% | +7.86% | |
| Volatilityi | 20.33% | 19.11% | |
| Sharpe ratioi | 0.31 | 0.26 | |
| Sortino ratioi | 0.43 | 0.35 | |
| Max drawdowni | 38.71% | 36.39% | |
| Current drawdowni | 5.05% | 2.14% | |
| Avg drawdowni | 12.75% | 11.53% | |
| Ulcer Indexi | 15.84% | 14.55% | |
| Max daily dropi | 12.67% | 12.09% | |
| Max wkly dropi | 18.11% | 17.93% |
| Category | IEMG | VWO |
|---|---|---|
| Fund name | iShares Core MSCI Emerging Markets ETF | Vanguard FTSE Emerging Markets Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratioi | 0.09% | 0.06% |
| Total assets (AUM)i | $160.9B | $168.36B |
| Dividend yieldi | 2.20% | 2.29% |
- 0.09% expense ratio vs EEM's 0.68% — IEMG provides more comprehensive EM coverage at far lower cost
- Includes small-cap EM stocks providing the most complete MSCI EM exposure available at this cost level
- MSCI EM index is the institutional benchmark for emerging markets — IEMG tracks the comprehensive all-cap version of this widely-followed index
- 0.08% expense ratio — marginally the cheapest EM ETF available from a major ETF provider
- FTSE EM index excludes South Korea (considered developed market), focusing EM exposure on countries like China, India, Brazil, Taiwan, Mexico, and others
- Vanguard's structural advantages ensure continued cost minimization in the EM allocation over time
- South Korea inclusion — MSCI classifies South Korea as emerging market (unlike FTSE which classifies it as developed) meaning IEMG includes Samsung, Hyundai, and other Korean companies
- China concentration at 25–30% means Chinese regulatory and geopolitical risk remains significant despite geographic diversification
- 0.09% vs VWO's 0.08% — VWO is marginally cheaper (1 basis point) but essentially equivalent in cost
- Korea exclusion means VWO and IEMG will perform differently during periods when Samsung, SK Hynix, and Korean companies outperform or underperform EM averages
- China concentration at 30%+ is the primary risk factor — VWO has meaningful exposure to Chinese government regulatory actions
- EM equities have significantly underperformed US equities over the past 15 years — currency devaluation and political risk have compressed returns
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