IEMG

How Does IEMG's Growth Focus Against IXUS' Broader International Diversification?

Key Points

Both the iShares Core MSCI Emerging Markets ETF (NYSEMKT:IEMG) and iShares Core MSCI Total International Stock ETF (NASDAQ:IXUS) offer exposure to non-U.S. equities, but IEMG targets only emerging markets, while IXUS covers developed and emerging markets globally. This comparison examines their costs, returns, risk, portfolio composition, and liquidity, helping investors see where the funds differ.

Snapshot (cost & size)

MetricIXUSIEMG
IssuerISharesIShares
Expense ratio0.07%0.09%
1-yr return (as of Feb. 7, 2026)31.67%37.83%
Dividend yield3.01%2.51%
AUM$54.40 billion$137.65 billion

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.

IEMG has a slightly higher expense ratio and lower return than IXUS, but its higher dividend yield may make the fund more appealing to income-driven investors.

Performance & risk comparison

MetricIXUSIEMG
Max drawdown (5 y)(30.05%)(37.16%)
Growth of $1,000 over 5 years$1,282$1,073

What's inside

IEMG holds 2707 emerging-market stocks, with its primary focus on the tech sector (23%), followed by financials (16%) and industrials (12%). Its top holdings are Taiwan Semiconductor Manufacturing (2330.SR), Samsung Electronics Ltd (005930.KS), and Tencent Holdings Ltd (0700.HK), giving it more exposure to Asian tech giants.

IXUS tracks an MSCI index covering large-, mid-, and small-cap stocks from developed and emerging markets, excluding the United States. It holds 4,211 securities, with its largest positions in Taiwan Semiconductor Manufacturing (2330.SR), Samsung Electronics Ltd (005930.KS), and ASML Holding N.V. (AMS:ASML.AS). Financial services (22%), industrials (15%), and technology (12%) are the top sectors by weight. The fund launched over 13 years ago, aiming for broad, low-cost international diversification.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investors

With IEMG’s focus on the emerging market, it aims to maximize growth for holders. However, when looking at IXUS’ top holdings, it’s nearly identical to IEMG’s, as both funds have four of the same companies in their top five holdings. They also have a strong allocation to Asian stocks, so they experience similar volatility that’s unique to countries within the continent.

Combine that with the fact that IXUS outperformed IEMG by more than 20% over the last five years, and IXUS has shown just as much substantial growth.

When taking a further step back, IXUS has delivered a price return that is over 35% higher since both BlackRock ETFs launched on Oct. 18, 2012. So overall, IXUS seems to have the edge over IEMG. However, if investors still want a stronger international tech focus, IEMG remains a formidable option, as it’s more concentrated in those types of companies.

Should you buy stock in iShares - iShares Core Msci Emerging Markets ETF right now?

Before you buy stock in iShares - iShares Core Msci Emerging Markets ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and iShares - iShares Core Msci Emerging Markets ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,299!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,136,601!*

Now, it’s worth noting Stock Advisor’s total average return is 914% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of February 8, 2026.

Adé Hennis has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Data is currently not available

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.