VXUS vs. IEMG: Which International ETF Is the Better Buy?
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By John Ballard – Apr 24, 2026 at 1:48PM ESTKey PointsIEMG delivered a much higher one-year return but saw a deeper maximum drawdown over five years.VXUS covers both developed and emerging markets, while IEMG focuses solely on emerging economies.VXUS is significantly larger with a lower expense ratio and a slightly higher dividend yield.The Vanguard Total International Stock ETF (NASDAQ:VXUS) and iShares Core MSCI Emerging Markets ETF (NYSEMKT:IEMG) differ most in geographic scope, sector tilts, and recent performance. VXUS offers broader international exposure, and IEMG concentrates on emerging markets and delivers stronger one-year returns.Both VXUS and IEMG give investors access to stocks outside the United States, but their mandates and risk profiles diverge. VXUS spans both developed and emerging markets, aiming for maximum diversification, while IEMG focuses exclusively on emerging markets, leading to different sector weights and return patterns. This comparison breaks down their key differences to help investors decide which approach may best align with their goals.Snapshot (cost & size)MetricVXUSIEMGIssuerVanguardiSharesExpense ratio0.05%0.09%1-yr return (as of April 22, 2026)36.9%52.1%Dividend yield2.77%2.37%Beta0.940.93AUM$582.3 billion$148.8 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.VXUS is more affordable on an annual basis and offers a slightly higher dividend yield. In comparison, IEMG has a marginally higher fee and a lower yield, but may appeal to those seeking pure emerging markets exposure.Performance & risk comparisonMetricVXUSIEMGMax drawdown (five years)(29.4%)(37.1%)Growth of $1,000 over five years$1,473$1,339What's insideVXUS invests across both developed and emerging international markets, resulting in a broader, more diversified portfolio of 8,782 holdings. Its top holdings includes cross several sectors, including financial services, industrials, and technology. The largest positions are Taiwan Semiconductor Manufacturing (2330.TW) and Samsung Electronics. This breadth may help dampen volatility relative to a pure emerging markets approach.ExpandNASDAQ: VXUSVanguard Total International Stock ETFToday's Change(0.84%) $0.69Current Price$82.41Key Data PointsDay's Range$81.96 - $82.6152wk Range$62.97 - $84.48Volume96KIEMG, by contrast, is built to capture the full breadth of emerging markets, holding 2,657 companies. It leans heavily into information technology (34%) and financials (19%), with sizable positions in Taiwan Semiconductor Manufacturing (2330.SR), Samsung Electronics Ltd (005930.KS), and Sk Hynix Inc (000660.KS). This sector mix and the concentration of top holdings reflect the dominance of Asian tech giants in the emerging universe.For more guidance on ETF investing, check out the full guide at this link.What does this mean for investorsThese are both solid international funds, based on their competitive fees, above-average dividend yields, liquidity, and diversification. But the Vanguard (VXUS) fund gives investors better reasons to own it than the iShares (IEMG).VXUS delivered a better five-year total return (including dividend reinvestment) than IEMG, while experiencing a less severe drawdown. This may reflect its broader mandate to invest in developed and emerging markets, whereas IEMG focuses on emerging markets.VXUS also offers a lower expense ratio and a higher dividend yield, which can pad investors’ returns. Unless investors see good reasons why emerging markets will outperform over the next five years, it’s hard to see a good reason to choose IEMG. Read NextApr 24, 2026 •By Robert IzquierdoBetter International ETF: iShares' IEMG vs. State Street's SPGMApr 18, 2026 •By Robert IzquierdoBetter iShares International ETF: IEFA vs. IEMGApr 10, 2026 •By Matt DiLalloBest ETFs for Long-Term GrowthApr 9, 2026 •By Tony Dong5 Best Emerging Markets ETFs to Buy in 2026Mar 31, 2026 •By David Dierking1 No-Brainer International Stock Fund to Buy Right Now for Less Than $1,000Mar 26, 2026 •By Jake LerchEmerging Market Showdown: IEMG Offers Lower Fees Compared to EEMAbout the AuthorJohn Ballard has been a contributing writer at The Motley Fool since 2016, covering consumer goods and technology stocks. He holds a bachelor’s degree in business administration with a focus in real estate finance from the University of Arkansas at Little Rock.TMFRazorbackStocks MentionediShares - iShares Core Msci Emerging Markets ETFNYSEMKT: IEMG$78.11(+2.01%)+$1.54Vanguard Total International Stock ETFNASDAQ: VXUS$82.41(+0.84%)+$0.69Taiwan Semiconductor ManufacturingNYSE: TSM$405.74(+6.03%)+$23.08*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.