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ETF Comparison

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

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

Data updated April 5, 2026

Side-by-side snapshot

VWOIEMG
Full nameVanguard FTSE Emerging Markets ETFiShares Core MSCI Emerging Markets ETF
IssuerVanguardBlackRock
Price$54.21$70.28
Distribution yield2.58%2.41%
Expense ratio0.06%0.09%
AUM$158.4B$148.6B
Distribution frequencyQuarterlySemi-Annual
Underlying indexFTSE Emerging Markets All Cap China A Inclusion IndexMSCI Emerging Markets Investable Market Index
ObjectiveTrack the FTSE Emerging Markets All Cap China A Inclusion Index.Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset classEquityEquity
Inception date03/04/200510/18/2012
Beta0.790.94
Last dividend$1.03$1.14
Ex-dividend date12/19/202512/16/2025

Visual comparison

Key metrics

Projected income on $10K

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

Quick verdict

VWO (Vanguard FTSE Emerging Markets ETF) and IEMG (iShares Core MSCI Emerging Markets ETF) are both popular quarterly-pay track the ftse emerging markets all cap china a inclusion index. ETFs, but they take different approaches.

VWO offers the higher yield at 2.58% vs 2.41% for IEMG. 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: VWO is linked to FTSE Emerging Markets All Cap China A Inclusion Index while IEMG tracks MSCI Emerging Markets Investable Market Index, which means their performance drivers differ.

VWO is the larger fund by assets ($158.4B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, VWO would generate roughly $21.50/month while IEMG would produce $20.08/month at current distribution rates. Both pay quarterly distributions.

VWO yield2.58%
IEMG yield2.41%
Monthly diff on $10K$1.42

Cost & efficiency

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

VWO ER0.06%
IEMG ER0.09%

Strategy & risk

VWO tracks FTSE Emerging Markets All Cap China A Inclusion Index with a track the ftse emerging markets all cap china a inclusion index. approach, while IEMG tracks MSCI Emerging Markets Investable Market Index using a provide exposure to the fund's underlying index or strategy per issuer materials. strategy. Beta is 0.79 for VWO and 0.94 for IEMG, indicating VWO is less volatile relative to the market.

VWO beta0.79
IEMG beta0.94

Fund details

VWO is managed by Vanguard (launched 03/04/2005) with $158.4B in assets. IEMG is managed by BlackRock (launched 10/18/2012) with $148.6B in assets.

VWO AUM$158.4B
IEMG AUM$148.6B

Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Frequently asked questions

Is VWO or IEMG better for dividend income?

It depends on your goals. VWO 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 VWO and IEMG?

VWO (Vanguard FTSE Emerging Markets ETF) tracks FTSE Emerging Markets All Cap China A Inclusion Index with a track the ftse emerging markets all cap china a inclusion index. strategy, while IEMG (iShares Core MSCI Emerging Markets ETF) tracks MSCI Emerging Markets Investable Market Index with a provide exposure to the fund's underlying index or strategy per issuer materials. approach. They are issued by Vanguard and BlackRock respectively.

Can I hold both VWO and IEMG?

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, VWO or IEMG?

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

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

At current yields, $10,000 in VWO would generate roughly $21.50 per month ($258.00 annually). The same in IEMG would produce about $20.08 per month ($241.00 annually).

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