The iShares Core MSCI Emerging Markets ETF (IEMG) and iShares Core MSCI EAFE ETF (IEFA) are core holdings for international diversification. IEMG focuses on emerging markets, while IEFA invests in developed markets outside North America. Both have similar expense ratios, but IEMG has outperformed IEFA over the past year. IEFA, however, has a higher dividend yield and lower volatility. When comparing the two ETFs, emerging markets tend to be more volatile but offer higher growth potential, while developed markets are more stable. IEFA has a stronger five-year return compared to IEMG, making it a more consistent option for investors.

Read more at Nasdaq: IEFA vs. IEMG: Comparing the Emerging and Developed Markets