VWO vs IEMG: The Critical Difference Is South Korea
VWO and IEMG are both broad emerging markets equity ETFs, but they track different index providers with one critical difference: FTSE (VWO) classifies South Korea as a developed market, while MSCI (IEMG) includes it as an emerging market. This means IEMG has ~12% South Korea exposure (Samsung, SK Hynix) that VWO does not. Everything else — China, Taiwan, India, Brazil — is nearly identical.
Key Differences
- IEMG includes South Korea (~12%); VWO does NOT — this is the single biggest difference
- VWO has lower TER: 0.08% vs IEMG's 0.09% — negligible difference
- IEMG holds ~2,800 stocks vs VWO's ~5,800 — VWO has deeper small-cap coverage
- If you already hold VEA (which includes South Korea per FTSE), VWO + VEA avoids double-counting Korea
- If you use IEFA (MSCI developed, excludes Korea), pair with IEMG to capture Korea in EM
Live Comparison
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Bottom Line
The choice depends on your other holdings. If you use Vanguard's FTSE-based funds (VTI + VEA), pair with VWO. If you use iShares' MSCI-based funds (ITOT + IEFA), pair with IEMG. Mixing index families creates South Korea overlap or gaps.
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Disclaimer: This comparison is for informational and educational purposes only. It does not constitute investment advice. Past performance does not guarantee future results. ETF data is sourced from Yahoo Finance and issuer websites. Always verify current data before making investment decisions.