# IEMG vs VWO: fees, holdings and returns compared

> IEMG vs VWO: what each ETF holds, what it costs, and how both did over the same dates, with yearly returns and worst drops.

IEMG and VWO both hold thousands of companies in emerging markets such as China, India, Taiwan and Brazil. The biggest difference is South Korea: IEMG includes it and VWO does not. Their fees are close. Over the same dates since October 2012, IEMG returned about 6.0% a year and VWO returned about 5.4% a year.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 20, 2026.

## Key points

- VWO costs less: 0.06% a year against 0.09%.
- IEMG started trading in October 2012. VWO started in March 2005.
- Worst drops since 2012: IEMG −38.7%, VWO −36.4%.
- Daily correlation: 0.98 (1 means they always move together).

## What is the difference between IEMG and VWO?

MSCI, whose index IEMG follows, counts South Korea as an emerging market, and it is one of the larger countries in IEMG. FTSE, whose index VWO follows, counts South Korea as developed, so VWO leaves it out. That difference makes the funds pull apart in years when South Korea moves differently from other emerging markets.

| Fact | IEMG | VWO |
| --- | --- | --- |
| Full name | iShares Core MSCI Emerging Markets ETF | Vanguard FTSE Emerging Markets ETF |
| Issuer | iShares (BlackRock) | Vanguard |
| Expense ratio | 0.09% a year | 0.06% a year |
| Started trading | October 18, 2012 | March 4, 2005 |
| Tracks | MSCI Emerging Markets Investable Market Index (USD) (Net) | FTSE Emerging Markets All Cap China A Inclusion Index |
| Holdings | 2,857 holdings as of October 15, 2026 | 6,507 holdings as of September 30, 2026 |
| Type | Emerging market stocks, ETF | Emerging market stocks, ETF |

Fund facts checked on the [iShares (BlackRock) IEMG page](https://www.ishares.com/us/products/244050/ishares-core-msci-emerging-markets-etf) and the [Vanguard VWO page](https://investor.vanguard.com/investment-products/etfs/profile/vwo).

## Is IEMG or VWO cheaper?

VWO costs less: 0.06% a year against 0.09%. On $10,000, that is about $9 a year for IEMG and $6 for VWO. The fund takes its fee out of its own value a little each day, so you never get a bill.

## IEMG vs VWO performance over the same dates

Both funds are measured from October 2012 to October 2026, the dates both traded. IEMG returned about 6.0% a year and VWO returned about 5.4% a year. IEMG came out ahead over this period, which does not mean it will again.

| Measure | IEMG | VWO |
| --- | --- | --- |
| $10,000 grew to | $22,702 | $20,806 |
| Total return | 127.0% | 108.1% |
| Return per year (CAGR) | 6.0% | 5.4% |
| Worst drop from a high | −38.7% | −36.4% |
| Volatility (how much it swings) | 19.8% | 19.1% |
| Last 12 months | 17.0% | 8.3% |
| Last 3 years, per year | 22.4% | 18.7% |
| Last 5 years, per year | 6.8% | 5.3% |
| Last 10 years, per year | 8.3% | 7.3% |

Prices through October 20, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## IEMG and VWO returns by year

| Year | IEMG | VWO |
| --- | --- | --- |
| 2026 (part of the year) | 16.0% | 8.7% |
| 2025 | 32.6% | 25.6% |
| 2024 | 6.5% | 10.6% |
| 2023 | 11.5% | 9.3% |
| 2022 | −20.0% | −18.0% |
| 2021 | −0.6% | 1.3% |
| 2020 | 17.9% | 15.2% |
| 2019 | 17.8% | 20.8% |
| 2018 | −14.9% | −14.8% |
| 2017 | 37.4% | 31.5% |
| 2016 | 10.3% | 12.2% |
| 2015 | −14.3% | −15.8% |
| 2014 | −3.4% | 0.0% |
| 2013 | −2.8% | −4.9% |
| 2012 (part of the year) | 8.5% | 8.6% |

## Which fell further in bad times?

A drawdown is how far a fund falls from its last high point. IEMG's worst fall was −38.7%, from January 26, 2018 to March 23, 2020. It got back to that high on November 16, 2020.

VWO's worst fall was −36.4%, from January 26, 2018 to March 23, 2020. It got back to that high on November 16, 2020.

Their daily moves had a correlation of 0.98. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So holding both adds little variety.

## Why people choose IEMG or VWO

**IEMG.** People who want South Korea counted with emerging markets, or use iShares, often pick IEMG.

**VWO.** People who use Vanguard, or hold South Korea in a developed-markets fund such as VEA, often pick VWO.

## Strategies that hold IEMG or VWO

These classic strategies hold one or both at least some of the time. Each is a set of written rules you can open, test and copy.

- [Hybrid Asset Allocation (HAA)](https://tactfolio.com/strategies/hybrid-asset-allocation.md), by Wouter Keller and JW Keuning, 2023 (holds VWO)
- [Bold Asset Allocation (BAA)](https://tactfolio.com/strategies/bold-asset-allocation.md), by Wouter Keller, 2022 (holds VWO)
- [Defensive Asset Allocation (DAA)](https://tactfolio.com/strategies/defensive-asset-allocation.md), by Wouter Keller and JW Keuning, 2018 (holds VWO)
- [Bold Asset Allocation G4 (BAA aggressive)](https://tactfolio.com/strategies/bold-asset-allocation-g4.md), by Wouter Keller, 2022 (holds VWO)
- [Mama Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/mama-bear-portfolio.md), by Brian Livingston, 2018 (holds VWO)
- [Papa Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/papa-bear-portfolio.md), by Brian Livingston, 2018 (holds VWO)
- [Kipnis Defensive Adaptive Asset Allocation (KDA)](https://tactfolio.com/strategies/kipnis-defensive-asset-allocation.md), by Ilya Kipnis, 2019 (holds VWO)
- [Resilient Asset Allocation (Keller’s RAA)](https://tactfolio.com/strategies/resilient-asset-allocation.md), by Wouter J. Keller, 2020 (holds VWO)

## Other funds like IEMG and VWO

Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: [IEMG alternatives](https://tactfolio.com/alternatives/IEMG.md) and [VWO alternatives](https://tactfolio.com/alternatives/VWO.md).

## Test a mix of IEMG and VWO

Open the [builder](https://tactfolio.com/builder), add IEMG and VWO, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for [IEMG](https://tactfolio.com/etf/IEMG.md) and [VWO](https://tactfolio.com/etf/VWO.md), or see [more ETF comparisons](https://tactfolio.com/etf-comparisons.md).

## The details

Both funds use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund's first day, so neither gets a head start. Correlation uses daily returns over the same days. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [Momentum strategy](https://tactfolio.com/learn/momentum-strategy): A momentum strategy buys recent winners by a written rule.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### Does VWO hold South Korea?

No. FTSE counts South Korea as a developed market, so it is in Vanguard's developed-markets fund VEA instead. IEMG holds South Korea.

### Why do emerging markets funds swing so much?

They hold companies in countries where politics, interest rates and currencies can change fast, so their prices can rise and fall more than US stocks.

### Which is cheaper, IEMG or VWO?

VWO costs less: 0.06% a year against 0.09%. Fees come from each issuer and were checked on October 17, 2026.

### Which did better, IEMG or VWO?

From October 2012 to October 2026, IEMG returned about 6.0% a year and VWO returned about 5.4% a year, with dividends reinvested. Their worst drops were −38.7% and −36.4%. Past returns do not tell you what comes next.

## Sources

- [iShares (BlackRock): iShares Core MSCI Emerging Markets ETF fund page](https://www.ishares.com/us/products/244050/ishares-core-msci-emerging-markets-etf)
- [Vanguard: Vanguard FTSE Emerging Markets ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vwo)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.