Emerging Echoes: IEMG & IXUS

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The iShares Core MSCI Emerging Markets ETF (IEMG +2.50%) and its broader cousin, the iShares Core MSCI Total International Stock ETF (IXUS +2.31%), present a curious diptych for the discerning investor. Both offer a glimpse beyond the parochial confines of U.S. equities, yet IEMG, with a singular focus on the volatile allure of emerging markets, contrasts with IXUS’s more cosmopolitan embrace of both the developed and developing worlds. A comparative examination, then, feels less like a financial assessment and more like a lepidopterist sorting specimens—a delicate balancing of cost, return, and the inherent risk of pinning down elusive performance metrics.

A Snapshot in Miniature

Metric IXUS IEMG
Issuer iShares iShares
Expense ratio 0.07% 0.09%
1-yr return (as of Feb. 7, 2026) 31.67% 37.83%
Dividend yield 3.01% 2.51%
AUM $54.40 billion $137.65 billion

Beta, a measure of price volatility relative to the S&P 500, is a capricious indicator, calculated from five-year weekly returns. The one-year return, a mere snapshot of trailing twelve-month performance, should be viewed with the same skepticism one reserves for carnival fortune tellers.

IEMG, with its slightly higher expense ratio and marginally lower return, presents a curious paradox. Yet, its higher dividend yield might appeal to those investors who favor a steady drip of income – a financial equivalent of a metronome, marking the passage of time with predictable regularity.

A Dance with Risk

Metric IXUS IEMG
Max drawdown (5 y) (30.05%) (37.16%)
Growth of $1,000 over 5 years $1,282 $1,073

The Contents Revealed

IEMG, a meticulously curated collection of 2707 emerging-market stocks, favors the technological sector (23%), followed by financials (16%) and industrials (12%). Its crown jewels – Taiwan Semiconductor Manufacturing, Samsung Electronics, and Tencent Holdings – are Asian behemoths, radiating a peculiar gravitational pull on the fund’s performance.

IXUS, in contrast, casts a wider net, encompassing 4,211 securities across large-, mid-, and small-cap stocks from developed and emerging markets – excluding, naturally, the United States. Its leading lights – Taiwan Semiconductor Manufacturing, Samsung Electronics, and ASML Holding – share some overlap with IEMG, suggesting a certain convergence of investment strategies. Financial services (22%), industrials (15%), and technology (12%) comprise the dominant sectors. Launched over thirteen years ago, IXUS aims for broad, low-cost international diversification – a rather pedestrian ambition, perhaps, but one that has proven remarkably durable.

For further guidance on the labyrinthine world of ETF investing, consult the full guide at [this link].

The Investor’s Dilemma

IEMG, with its laser focus on emerging markets, aspires to maximize growth for its holders. Yet, a closer inspection reveals a curious mirroring of holdings with IXUS. Four of the top five companies are shared between the two funds, suggesting a rather limited degree of true differentiation. Both funds exhibit a strong allocation to Asian stocks, subjecting them to a similar continental volatility – a subtle tremor in the global financial landscape.

Indeed, over the past five years, IXUS has outperformed IEMG by a margin exceeding 20% – a rather substantial divergence. This suggests that IXUS possesses a certain momentum, a subtle advantage in the relentless pursuit of returns. Furthermore, since their respective launches on October 18, 2012, IXUS has delivered a price return over 35% higher than IEMG – a rather damning statistic.

Thus, IXUS appears to possess a discernible edge. However, if an investor harbors a particular fondness for international technology, IEMG remains a formidable option, albeit one that is more concentrated in those sectors. A nuanced choice, then, for the discerning investor—a delicate balancing act between ambition and prudence.

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2026-02-09 01:33