1 hour ago
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Jake Lerch, The Motley Fool
Sat, February 7, 2026 astatine 11:26 AM CST 4 min read
While some the iShares Core MSCI Emerging Markets ETF (NYSEMKT:IEMG) and iShares Core MSCI EAFE ETF (NYSEMKT:IEFA) connection wide planetary equity vulnerability astatine debased cost, IEFA trades astatine a marginally little disbursal ratio and yields more, whereas IEMG has outperformed implicit the past twelvemonth and covers riskier, higher-growth emerging markets.
IEMG and IEFA are some halfway planetary ETFs from iShares, but they way antithetic planetary slices: IEMG focuses connected emerging markets, portion IEFA excludes the U.S. and Canada, and emerging economies, alternatively targeting developed markets successful Europe, Asia, and Australia. This examination highlights wherever each money stands connected cost, performance, risk, portfolio makeup, and trading ease.
| Issuer | IShares | IShares |
| Expense ratio | 0.09% | 0.07% |
| 1-yr instrumentality (as of 2026-01-30) | 35.3% | 26.6% |
| Dividend yield | 2.5% | 3.4% |
| Beta | 0.65 | 0.85 |
| AUM | $141.4 billion | $174.1 billion |
Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.
IEFA looks a spot much affordable with its 0.07% interest compared to IEMG’s 0.09%, and it besides pays a higher dividend output by astir a afloat percent point, which whitethorn entreaty to income-focused investors.
| Max drawdown (5 y) | -37.16% | -30.41% |
| Growth of $1,000 implicit 5 years | $1,106 | $1,353 |
IEFA holds astir 2,589 developed-market stocks crossed Europe, Asia, and Australia, with its largest assemblage weights successful fiscal services (22%), industrials (20%), and healthcare (11%). Top positions see ASML Holding NV, Roche Holding Par AG, and HSBC Holdings PLC. The money has a 13.3-year way grounds and is designed to reflector developed markets extracurricular North America.
IEMG, successful contrast, tracks astir 2,725 stocks from emerging economies, leaning heavy connected exertion (26%) and fiscal services (21%), with Taiwan Semiconductor Manufacturing, Samsung Electronics Ltd, and Tencent Holdings Ltd among its largest holdings. This gives IEMG greater vulnerability to higher-growth, higher-risk regions and sectors compared to IEFA’s developed-market focus.
For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.
Both the iShares Core MSCI Emerging Markets ETF (IEMG) and iShares Core MSCI EAFE ETF (IEFA) funds supply investors a mode to put successful planetary markets, nevertheless they bash truthful successful contrasting ways. Here’s what investors request to know.
First, IEMG is an emerging markets fund. Consequently, its holdings are overwhelmingly based successful the Asian portion (78% of full holdings), with lone 13% successful Europe, and 9% successful North, Central, and South America. IEFA, connected the different hand, focuses connected developed markets crossed Europe (63%) and Asia (35%).
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