Each the iShares Core MSCI Rising Markets ETF (NYSEMKT:IEMG) and iShares Core MSCI EAFE ETF (NYSEMKT:IEFA) are designed as core holdings for worldwide diversification, however IEMG targets rising markets whereas IEFA invests in developed markets exterior North America. This comparability examines value, current efficiency, volatility, and portfolio development to assist traders resolve which fund most closely fits their world allocation objectives.
|
Metric |
IEMG |
IEFA |
|---|---|---|
|
Issuer |
IShares |
IShares |
|
Expense ratio |
0.09% |
0.07% |
|
1-yr return (as of Feb. 7, 2026) |
37.83% |
28.70% |
|
Dividend yield |
2.51% |
3.32% |
|
AUM |
$137.65 billion |
$171.77 billion |
Beta measures worth volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents whole return over the trailing 12 months.
IEMG has outperformed IEFA over the previous 12 months, however IEFA has the upper dividend yield, with each funds having related expense ratios.
|
Metric |
IEMG |
IEFA |
|---|---|---|
|
Max drawdown (5 y) |
(37.16%) |
(30.41%) |
|
Development of $1,000 over 5 years |
$1,073 |
$1,338 |
IEMG has delivered a stronger one-year whole return, however over 5 years, IEFA’s steadier experience led to increased cumulative progress and a shallower drawdown. IEFA’s decrease volatility could matter for risk-sensitive traders.
IEFA tracks developed markets exterior the U.S. and Canada, providing entry to 2,589 holdings, with monetary providers (22%), industrials (20%), and healthcare (11%) as the highest sectors. Its largest positions embrace ASML Holding N.V. (AMS:ASML.AS), Roche Holding AG (SIX:ROG.SW), and HSBC Holdings Plc (LSE:HSBA.L). With a 13-year observe file, its worldwide focus tends to lean in the direction of corporations in Europe and Asia.
Launched on the identical day as IEFA on Oct. 18, 2012, IEMG holds 2707 emerging-market shares, tilting much more in the direction of the tech sector. Its high holdings are Taiwan Semiconductor Manufacturing (2330.SR), Samsung Electronics Ltd (005930.KS), and Tencent Holdings Ltd (0700.HK), giving it extra publicity to Asian tech giants.
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When evaluating these two ETFs, they reveal frequent patterns in monetary markets between rising and developed markets. With rising markets, there’s typically extra volatility with these kind of shares, as they’re newer and/or extra area of interest corporations. This leaves extra room to develop, but in addition extra space to break down operationally.
Developed markets, alternatively, could not expertise the value spikes that rising corporations do, however they’re extra secure and constant, with a stronger basis to fall again on. And once we have a look at the one-year worth distinction between the 2 talked about ETFs, the rising markets ETF has a greater return. Over the five-year span, nonetheless, IEFA’s return is 3 times increased than IEMG’s and has moved extra step by step.
