Vanguard FTSE Emerging Markets ETF (VWO) and iShares Core MSCI Emerging Markets ETF (IEMG) differ in expense ratio, holdings, and recent performance. IEMG offers stronger one-year returns, while VWO has a smaller five-year maximum drawdown. Both aim to provide diversified exposure to emerging markets outside of developed economies.

VWO has a lower expense ratio of 0.07% compared to IEMG’s 0.09%. While IEMG charges slightly more, it remains competitively priced for broad emerging markets exposure. VWO’s yield is marginally higher at 2.83%, appealing to income-focused investors. Both ETFs have similar sector allocations and top holdings.

IEMG holds 2,725 stocks with sector allocations in technology, financial services, and consumer cyclicals. Its top positions include Taiwan Semiconductor Manufacturing and Tencent Holdings. VWO is similarly diversified with 6,146 holdings and similar sector weightings, with positions in Taiwan Semiconductor Manufacturing and Tencent Holdings.

Both VWO and IEMG have delivered nearly identical annualized total returns since 2012. Each ETF has around one-sixth of its portfolio allocated to Taiwan Semiconductor Manufacturing, Tencent, and Alibaba Group Holdings. IEMG includes South Korea as an emerging market, offering exposure to its economy.

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Read more at Yahoo Finance: Is VWO or IEMG the Better Emerging Markets ETF?