VXUS vs. IEMG

Last updated Jun 14, 2026

VXUS (Vanguard Total International Stock ETF) and IEMG (iShares Core MSCI Emerging Markets ETF) are both exchange-traded funds - VXUS is a Global Equities fund tracking the FTSE Global All Cap ex US Index, while IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index (USD) (Net). Both are passively managed. Over the past 10 years, VXUS returned 10.22%/yr vs 10.42%/yr for IEMG. Their correlation of 0.89 suggests significant overlap in exposure. VXUS charges 0.05%/yr vs 0.09%/yr for IEMG.

Performance

VXUS vs. IEMG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total International Stock ETF (VXUS) and iShares Core MSCI Emerging Markets ETF (IEMG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VXUS achieves a 13.69% return, which is significantly lower than IEMG's 22.84% return. Both investments have delivered pretty close results over the past 10 years, with VXUS having a 10.22% annualized return and IEMG not far ahead at 10.42%.

VXUS

• 1D: 0.40%
• 1M: 0.78%
• YTD: 13.69%
• 6M: 15.52%
• 1Y: 30.12%
• 3Y*: 18.37%
• 5Y*: 8.32%
• 10Y*: 10.22%

IEMG

• 1D: 0.61%
• 1M: 0.34%
• YTD: 22.84%
• 6M: 25.59%
• 1Y: 44.83%
• 3Y*: 21.33%
• 5Y*: 7.15%
• 10Y*: 10.42%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VXUS vs. IEMG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VXUS Vanguard Total International Stock ETF	13.69%	32.35%	5.08%	15.86%	-16.08%	8.98%	10.66%	21.75%	-14.43%	27.46%
IEMG iShares Core MSCI Emerging Markets ETF	22.84%	32.56%	6.50%	11.52%	-19.98%	-0.64%	17.87%	17.81%	-14.92%	37.38%

Correlation

The correlation between VXUS and IEMG is 0.90, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Oct 24, 2012	0.89

The correlation between VXUS and IEMG has been stable across timeframes, ranging from 0.89 to 0.90 - a consistent structural relationship.

VXUS vs. IEMG - Sectors Allocation Comparison

Sectors	VXUS	IEMG
Financial Services	22.3%	16.7%
Technology	18.1%	42.1%
Industrials	16.1%	8.0%
Consumer Cyclical	8.4%	8.5%
Basic Materials	7.6%	6.3%
Healthcare	7.1%	3.2%
Energy	5.2%	3.3%
Consumer Defensive	5.0%	2.8%
Communication Services	4.4%	5.6%
Utilities	3.2%	1.9%
Real Estate	2.6%	1.6%

Return for Risk

VXUS vs. IEMG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VXUS

VXUS Risk / Return Rank: 61
VXUS Sharpe Ratio Rank: 61
VXUS Sortino Ratio Rank: 60
VXUS Omega Ratio Rank: 63
VXUS Calmar Ratio Rank: 58
VXUS Martin Ratio Rank: 62

IEMG

IEMG Risk / Return Rank: 73
IEMG Sharpe Ratio Rank: 73
IEMG Sortino Ratio Rank: 67
IEMG Omega Ratio Rank: 76
IEMG Calmar Ratio Rank: 73
IEMG Martin Ratio Rank: 73

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VXUS vs. IEMG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total International Stock ETF (VXUS) and iShares Core MSCI Emerging Markets ETF (IEMG). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VXUS	IEMG	Difference
Sharpe ratio: Return per unit of total volatility	1.77	2.03	-0.25
Sortino ratio: Return per unit of downside risk	2.44	2.65	-0.21
Omega ratio: Gain probability vs. loss probability	1.33	1.39	-0.06
Calmar ratio: Return relative to maximum drawdown	2.53	3.23	-0.70
Martin ratio: Return relative to average drawdown	9.72	11.89	-2.16

VXUS vs. IEMG - Sharpe Ratio Comparison

The current VXUS Sharpe Ratio is 1.77, which is comparable to the IEMG Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of VXUS and IEMG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VXUS vs. IEMG - Drawdown Comparison

The maximum VXUS drawdown since its inception was -35.97%, smaller than the maximum IEMG drawdown of -38.71%. Use the drawdown chart below to compare losses from any high point for VXUS and IEMG.

Drawdown Indicators

	VXUS	IEMG	Difference
Max Drawdown Largest peak-to-trough decline	-35.97%	-38.71%	+2.74%
Max Drawdown (1Y) Largest decline over 1 year	-11.27%	-13.21%	+1.94%
Max Drawdown (3Y) Largest decline over 3 years	-13.58%	-17.21%	+3.63%
Max Drawdown (5Y) Largest decline over 5 years	-29.44%	-35.75%	+6.31%
Max Drawdown (10Y) Largest decline over 10 years	-35.97%	-38.71%	+2.74%
Current Drawdown Current decline from peak	-1.47%	-3.98%	+2.51%
Average Drawdown Average peak-to-trough decline	-8.21%	-12.95%	+4.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.93%	3.59%	-0.66%

Volatility

VXUS vs. IEMG - Volatility Comparison

The current volatility for Vanguard Total International Stock ETF (VXUS) is 6.71%, while iShares Core MSCI Emerging Markets ETF (IEMG) has a volatility of 10.60%. This indicates that VXUS experiences smaller price fluctuations and is considered to be less risky than IEMG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VXUS	IEMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.71%	10.60%	-3.89%
Volatility (6M) Calculated over the trailing 6-month period	14.02%	18.89%	-4.87%
Volatility (1Y) Calculated over the trailing 1-year period	16.09%	21.08%	-4.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.21%	18.73%	-2.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.20%	20.17%	-2.97%

VXUS vs. IEMG - Expense Ratio Comparison

VXUS has a 0.05% expense ratio, which is lower than IEMG's 0.09% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VXUS vs. IEMG - Dividend Comparison

VXUS's dividend yield for the trailing twelve months is around 2.67%, more than IEMG's 2.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEMG iShares Core MSCI Emerging Markets ETF	2.24%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%
VXUS Vanguard Total International Stock ETF	2.67%	3.18%	3.37%	3.24%	3.09%	3.10%	2.14%	3.06%	3.18%	2.73%	2.93%	2.83%

Frequently Asked Questions

Can I hold both VXUS and IEMG in my portfolio?

VXUS and IEMG have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VXUS or IEMG?

IEMG has higher volatility (10.60%) compared to VXUS (6.71%). In terms of maximum drawdown, VXUS dropped -35.97% vs IEMG's -38.71%.

Which ETF is better, VXUS or IEMG?

On 10-year performance, IEMG leads with 10.42% vs 10.22% for VXUS. On fees, VXUS is cheaper at 0.05% per year. On volatility, VXUS has been the lower-risk option at 6.71%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VXUS or IEMG?

Over the 10-year period, IEMG has performed better with a 10.42% return vs 10.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VXUS or IEMG?

VXUS is cheaper with a 0.05% expense ratio, compared with 0.09% for IEMG.

Which ETF pays a higher dividend yield, VXUS or IEMG?

VXUS has the higher dividend yield at 2.67%, compared with 2.24% for IEMG.

What is the main difference between VXUS and IEMG?

VXUS is categorized as Global Equities, while IEMG is Emerging Markets Diversified. VXUS tracks FTSE Global All Cap ex US Index, while IEMG tracks MSCI Emerging Markets Investable Market Index (USD) (Net). They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.05% for VXUS and 0.09% for IEMG.

Which has better risk-adjusted returns?

IEMG currently has the higher Sharpe Ratio (2.03 vs 1.77), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.