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.
IEMG holds the edge across 3 of 5 key metrics in this comparison. IEMG has delivered stronger 1-year price return (+13.89% vs +5.97% 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 | 24.9 | 24.7 |
| Latest closei | $74.94 | $56.28 |
| 1M returni | -10.34% | -7.14% |
| 3M returni | -6.28% | -6.04% |
| 6M returni | -8.49% | -7.07% |
| 1Y returni | +13.89% | +5.97% |
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 | $11.68K (+16.8%) started 2025-11-04 | $10.84K (+8.4%) started 2025-11-04 |
| 5Y ago | $16.2K (+62.0%) started 2021-11-05 | $15.04K (+50.4%) started 2021-11-05 |
| 10Y ago | $29.65K (+196.5%) started 2016-11-07 | $26.92K (+169.2%) started 2016-11-07 |
Hypothetical — past performance does not guarantee future results.
| Metric | IEMG | VWO |
|---|---|---|
| Expense ratioi | 0.09% | 0.06% |
| Total assets (AUM)i | $145.91B | $156.74B |
| Dividend yieldi | 2.42% | 2.19% |
| Trailing P/Ei | 14.49 | 15.30 |
| Betai | 0.79 | 0.65 |
| 52-week change | 13.89% | 5.97% |
| Metric | IEMG | VWO |
|---|---|---|
| 1Y returni | +13.89% | +5.97% |
| 6M returni | -8.49% | -7.07% |
| 3M returni | -6.28% | -6.04% |
| 1M returni | -10.34% | -7.14% |
| 1Y Sharpe ratio | 0.47 | 0.16 |
| Betai | 0.79 | 0.65 |
| Dividend yieldi | 2.42% | 2.19% |
| 5Y CAGR | +6.75% | +5.11% |
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 | +13.89% | +5.97% |
| CAGRi | +13.90% | +5.98% | |
| Volatilityi | 24.72% | 17.59% | |
| Sharpe ratioi | 0.47 | 0.16 | |
| Sortino ratioi | 0.66 | 0.23 | |
| Max drawdowni | 13.78% | 11.17% | |
| Current drawdowni | 12.86% | 8.22% | |
| Avg drawdowni | 4.39% | 2.86% | |
| Ulcer Indexi | 5.79% | 3.88% | |
| Max daily dropi | 6.40% | 3.78% | |
| Max wkly dropi | 8.17% | 6.25% | |
| 5Y | Growthi | +38.58% | +28.30% |
| CAGRi | +6.75% | +5.11% | |
| Volatilityi | 19.51% | 17.53% | |
| Sharpe ratioi | 0.20 | 0.12 | |
| Sortino ratioi | 0.29 | 0.17 | |
| Max drawdowni | 32.08% | 29.87% | |
| Current drawdowni | 12.86% | 8.22% | |
| Avg drawdowni | 11.00% | 10.09% | |
| Ulcer Indexi | 13.67% | 12.68% | |
| Max daily dropi | 6.40% | 5.60% | |
| Max wkly dropi | 11.94% | 12.16% | |
| 10Y | Growthi | +117.56% | +96.24% |
| CAGRi | +8.09% | +6.98% | |
| Volatilityi | 20.36% | 19.09% | |
| Sharpe ratioi | 0.26 | 0.21 | |
| Sortino ratioi | 0.36 | 0.29 | |
| Max drawdowni | 38.71% | 36.39% | |
| Current drawdowni | 12.86% | 8.22% | |
| Avg drawdowni | 12.80% | 11.57% | |
| Ulcer Indexi | 15.86% | 14.56% | |
| 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 | $145.91B | $156.74B |
| Dividend yieldi | 2.42% | 2.19% |
- 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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