The iShares Core MSCI Total International Stock ETF (IXUS 2.02%) offers broad developed and emerging market exposure at a lower annual cost, while the iShares Core MSCI Emerging Markets ETF (IEMG 3.18%) focuses solely on emerging markets, carries a marginally higher fee, and has seen stronger recent returns.
Both IXUS and IEMG target international equities, but their mandates differ: IXUS spans the entire non-U.S. stock universe, while IEMG zeroes in on emerging markets. This comparison explores their costs, recent performance, risk, portfolio composition, and trading characteristics to help investors identify which ETF may appeal depending on international allocation goals.
Snapshot (cost & size)
| Metric | IXUS | IEMG |
|---|---|---|
| Issuer | IShares | IShares |
| Expense ratio | 0.07% | 0.09% |
| 1-yr return (as of 2026-02-02) | 35.9% | 41.5% |
| Dividend yield | 3.24% | 2.75% |
| AUM | $51.9 billion | $120.0 billion |
| Beta | 1.02 | 0.96 |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
IXUS is slightly more affordable with a 0.07% expense ratio compared to IEMG’s 0.09%, and it also pays a higher dividend yield.
NASDAQ: IXUS
Key Data Points
Performance & risk comparison
| Metric | IXUS | IEMG |
|---|---|---|
| Max drawdown (5 y) | (30.05%) | (37.16%) |
| Growth of $1,000 over 5 years | $1,305 | $1,106 |
NYSEMKT: IEMG
Key Data Points
What's inside
IEMG holds 2,725 stocks from emerging economies, emphasizing technology (26%), financial services (21%), and consumer cyclicals (12%). Its largest positions are Taiwan Semiconductor Manufacturing, Samsung Electronics, and Tencent Holdings, with the top holding representing over 10% of assets. The fund has operated for 13.3 years, offering targeted emerging market exposure with substantial company concentration at the top.
IXUS casts a wider net, holding 4,173 stocks across developed and emerging markets. It leans toward financial services (21%), industrials (15%), and basic materials (13%), with its top positions in Taiwan Semiconductor Manufacturing, ASML, and Samsung Electronics. While both funds share some major holdings, IXUS dilutes single-company risk by spreading assets across a broader universe and more sectors.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
International stocks delivered spectacular returns in 2025, outpacing U.S. markets by double digits thanks to a weaker dollar, attractive valuations, and strong earnings growth. Both IXUS and IEMG are smart ways to capture this opportunity, the difference being that IXUS offers comprehensive diversification while IEMG concentrates on emerging economies.
Taiwan Semiconductor Manufacturing is the top holding in both funds, evidence of how the AI boom has elevated chipmakers globally. But the portfolios diverge sharply from there. IXUS balances this semiconductor exposure across mature European consumer and pharmaceutical companies, Japanese manufacturers, and a measured dose of emerging market growth. IEMG leans heavily into technology across multiple Asian economies, creating a portfolio where tech represents over a quarter of assets and economic development risk is concentrated in faster-growing but more volatile markets.
Investors interested in international stocks should note that while they offer diversification beyond U.S. megacap tech dominance, they also come with currency risk and geopolitical uncertainty. IXUS is a good bet for investors wanting complete international exposure as a core holding who value stability across developed and emerging markets. IEMG appeals to those making a deliberate bet on emerging market outperformance, comfortable with heightened volatility and willing to accept concentrated technology and geographic risk for potentially higher long-term growth.
