{
  "id": 19154515,
  "title": "Here's the Thing iShares' Emerging Markets ETF (IEMG) ETF Has That Vanguard's VWO Doesn't",
  "url": "https://urgent.news/2026/11/09/heres-the-thing-ishares-emerging-markets-etf-iemg-etf-has-that",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-09T13:15:02.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/coverage/etfs/2026/11/09/here-s-the-thing-ishares-emerging-markets-etf-iemg-etf-has-that-vanguard-s-vwo-doesn-t/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "iShares Core MSCI Emerging Markets ETF (IEMG) and Vanguard FTSE Emerging Markets ETF (VWO) are two prominent investment options for those seeking exposure to developing economies like China, Taiwan, and South Korea. Both funds offer low expense ratios and similar trailing-12-month dividend yields, around 2.2% for VWO and 2.4% for IEMG.\n\nWhile their objectives are comparable, their underlying indexes and market-cap weightings result in distinct performance outcomes and sector concentrations within the emerging markets landscape. IEMG, launched in 2012, focuses more on information technology (35% of the fund) and financials (20.5%), holding 2,845 securities with Taiwan Semiconductor Manufacturing and Samsung Electronics as its largest positions. In contrast, VWO, established in 2005, leans into technology (33% of the fund) and financial services (17%), with 6,507 holdings and larger positions in Taiwan Semiconductor Manufacturing and Tencent Holdings.\n\nA key differentiator between the two funds is South Korea. IEMG includes South Korean companies, such as SK Hynix and Samsung, which together account for nearly 10% of the fund, representing over 17% of its portfolio. This concentration in South Korean stocks can lead to different performance outcomes when compared to VWO, which does not hold any South Korean companies due to its tracking index exclusion.\n\nInvestors who wish to avoid exposure to South Korea or have existing exposure to those companies might prefer VWO. Conversely, those seeking a wider array of AI and semiconductor companies may find IEMG's South Korea exposure appealing. Ultimately, both funds are solid options for investors looking for diversified exposure to emerging markets, with the choice between them coming down to individual investment preferences and risk tolerance.",
  "summary": "Vanguard's lower 0.06% expense ratio appeals to cost-conscious investors, while iShares' higher dividend yield and tech concentration suit income seekers. But there's an important thing to know about their holdings.",
  "key_points": [
    "IEMG focuses on information technology (35%) and financials (20.5%)",
    "VWO leans into technology (33%) and financial services (17%)",
    "IEMG has significant South Korean exposure (10% of portfolio)"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}