ETF Comparison

IEMG vs VWO: Which Is the Better Pick in 2026?

A head-to-head comparison of iShares Core MSCI Emerging Markets ETF and Vanguard FTSE Emerging Markets ETF covering yield, cost, risk, and income potential.

Data updated May 20, 2026

BlackRock

ETFs44

Total AUM$3107.6B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

BlackRock is one of the world's largest asset managers and a major provider of ETFs across multiple investment strategies. The company's dividend-focused lineup emphasizes income-generating investments, with funds designed to deliver regular distributions to investors seeking yield. Their portfolio includes eight notable ETFs such as BALI (emerging markets income), DIVB (dividend equity), and DGRO (dividend growth), alongside complementary funds that span income, growth, and fixed-income strategies.

See our curated list of related YouTube videos on IEMG.

See all BlackRock ETFs

Vanguard

ETFs48

Total AUM$11763.3B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is known for offering low-cost, passively managed ETFs that serve as core portfolio holdings for individual investors. Their fund lineup emphasizes core equity exposure and dividend income strategies, with offerings spanning domestic growth (VGT, VUG), broad market indices (VOO), dividend-focused portfolios (VYM, VIG), and international high dividend yield opportunities (VONG, VYMI). The issuer's seven funds are characterized by expense ratios among the industry's lowest and a focus on long-term, buy-and-hold investors seeking diversified equity exposure.

See our curated list of related YouTube videos on VWO.

See all Vanguard ETFs

Side-by-side snapshot

	IEMG	VWO
Full name	iShares Core MSCI Emerging Markets ETF	Vanguard FTSE Emerging Markets ETF
Issuer	BlackRock	Vanguard
Last Close	$79.41 as of May 20, 2026	$58.48 as of May 20, 2026
Distribution yield	2.33%	1.43%
Expense ratio	0.09%	0.06%
AUM	$151.2B	$159.9B
Distribution frequency	Semi-Annual	Quarterly
Underlying index	MSCI Emerging Markets Investable Market Index	FTSE Emerging Markets All Cap China A Inclusion Index
Objective	Provide exposure to the fund's underlying index or strategy per issuer materials.	Track the FTSE Emerging Markets All Cap China A Inclusion Index.
Asset class	Equity	Equity
Inception date	10/18/2012	03/04/2005
Beta	0.99	0.79
Last dividend	$1.14	$1.03
Ex-dividend date	12/16/2025	12/19/2025

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Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Quick verdict

IEMG (iShares Core MSCI Emerging Markets ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both dividend ETFs, but they take different approaches.

IEMG offers the higher yield at 2.33% vs 1.43% for VWO. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VWO is cheaper with an expense ratio of 0.06% compared to 0.09%.

They track different benchmarks: IEMG is linked to MSCI Emerging Markets Investable Market Index while VWO tracks FTSE Emerging Markets All Cap China A Inclusion Index, which means their performance drivers differ.

VWO is the larger fund by assets ($159.9B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, IEMG would generate roughly $19.42/month, while VWO would produce $11.92/month, at current distribution rates.

IEMG yield2.33%

VWO yield1.43%

Monthly diff on $10K$7.50

Cost & efficiency

Over 10 years on $10,000, IEMG would cost approximately $90 in fees vs $60 for VWO (simplified, not compounded). The $30.00 difference may be offset by yield or performance.

IEMG ER0.09%

VWO ER0.06%

Strategy & risk

IEMG tracks MSCI Emerging Markets Investable Market Index with an index approach, while VWO tracks FTSE Emerging Markets All Cap China A Inclusion Index using an international strategy. Beta is 0.99 for IEMG and 0.79 for VWO, indicating VWO is less volatile relative to the market.

IEMG beta0.99

VWO beta0.79

Fund details

IEMG is managed by BlackRock (launched 10/18/2012) with $151.2B in assets. VWO is managed by Vanguard (launched 03/04/2005) with $159.9B in assets.

IEMG AUM$151.2B

VWO AUM$159.9B

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Frequently asked questions

Is IEMG or VWO better for dividend income?

It depends on your goals. IEMG currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between IEMG and VWO?

IEMG (iShares Core MSCI Emerging Markets ETF) tracks MSCI Emerging Markets Investable Market Index with an index strategy, while VWO (Vanguard FTSE Emerging Markets ETF) tracks FTSE Emerging Markets All Cap China A Inclusion Index with an international approach. They are issued by BlackRock and Vanguard respectively.

Can I hold both IEMG and VWO?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, IEMG or VWO?

IEMG has an expense ratio of 0.09% while VWO charges 0.06%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in IEMG vs VWO generate?

At current rates, $10,000 in IEMG would generate roughly $19.42 per month ($233.00 annually). The same in VWO would produce about $11.92 per month ($143.00 annually).

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IEMG vs VWO — at a glance

Generated April 2026 from current fund data.

Overview

IEMG and VWO are both low-cost, broad-market emerging-markets ETFs tracking different indexes. IEMG uses the MSCI Emerging Markets Investable Market Index while VWO tracks the FTSE Emerging Markets All Cap China A Inclusion Index. The key distinction is that VWO includes Chinese A-shares (mainland stocks) while IEMG does not, giving them meaningfully different country and sector exposures despite similar overall mandates.

How they differ

The single biggest difference is index composition: VWO's inclusion of China A-shares means it has deeper access to mainland Chinese equities, while IEMG relies on H-shares and ADRs. This translates to a different country-weighting mix and sector exposure—VWO tilts more toward China, while IEMG has broader geographic diversification across other emerging markets.

On yield, IEMG distributes 2.42% annually (semi-annual) versus VWO's 1.44% (quarterly). That gap reflects index methodology and the A-shares inclusion. IEMG carries a 0.09% expense ratio; VWO is slightly cheaper at 0.06%. VWO has the larger asset base ($146 billion vs. $134 billion) and a lower beta (0.77 vs. 0.93), suggesting it has historically been somewhat less volatile relative to broad markets. Both are index trackers with minimal active risk.

Who each is best for

IEMG: Investors seeking broader emerging-market diversification without China A-share concentration, willing to accept semi-annual distributions, and comfortable with modest volatility for low fees.

VWO: Long-term emerging-markets investors with a China-positive view, preferring quarterly distributions and rock-bottom fees, comfortable with slightly lower historical volatility.

Key risks to know

Index-tracking risk: Both funds move in lockstep with their respective indexes. If emerging markets underperform or face currency headwinds, both will reflect that drag.
China exposure divergence: VWO's A-shares inclusion means it benefits from policy stimulus in mainland China but also faces regulatory and liquidity risks tied to Chinese equities; IEMG sidesteps this concentration.
Currency fluctuation: Emerging-market currencies can swing sharply against the dollar, affecting unhedged returns for both funds.
Liquidity and political risk: Emerging markets carry higher geopolitical and policy uncertainty than developed markets; this affects both funds, though the composition differences mean they won't move identically.

Bottom line

If you want China A-share exposure and lower volatility on a longer time horizon, VWO's slightly cheaper fee and deeper China access make it the leaner choice. If you prefer geographic diversification and higher income, IEMG's broader mandate and 2.42% yield may appeal. Both are sensible core holdings for emerging-markets allocation; the choice hinges on whether you want China A-share upside or a wider geographic net. Past performance doesn't guarantee future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.