ETF Versus

EFA vs IEMG

iShares MSCI EAFE ETF vs iShares Core MSCI Emerging Markets ETF

Last updated: 2026-04-02

EFA iShares

iShares MSCI EAFE ETF (EFA) is an exchange-traded fund issued by iShares that provides exposure to equities in developed international markets outside the U.S.. It charges an above-average expense ratio of 0.32%. The fund offers an attractive dividend yield of 3.29%. Launched in 2001, the fund has a 25-year track record.

AUM: $69.1B ER: 0.32% Yield: 3.29% Since: Aug 14, 2001
IEMG iShares

iShares Core MSCI Emerging Markets ETF (IEMG) is an exchange-traded fund issued by iShares that provides exposure to stocks in emerging market economies with higher growth potential. It charges a low expense ratio of 0.09%. The fund offers an attractive dividend yield of 2.63%. Launched in 2012, the fund has a 14-year track record.

AUM: $132.2B ER: 0.09% Yield: 2.63% Since: Oct 18, 2012

Quick Verdict

IEMG is significantly cheaper at 0.09% vs 0.32% expense ratio, saving you approximately $452 per $10,000 invested over 10 years. Over the past year, IEMG has significantly outperformed with a 29.6% return vs 20.5%. Income investors may prefer EFA for its higher yield (3.3% vs 2.6%).

Key Metrics

Metric EFA IEMG
Expense Ratio 0.32% 0.09%
Dividend Yield 3.3% 2.6%
Fund Family iShares iShares
Category International Developed Emerging Markets

Performance Chart

Indexed to 100 at start (5-year comparison)

65 80 95 110 125 140 2021-04 2022-06 2023-09 2024-12 2026-04
EFA +26.5%
IEMG +7.7%

Performance Comparison

Period EFA IEMG Difference
1 Month -4.54% -6.83% +2.29%
3 Months +1.62% +1.86% -0.24%
6 Months +3.71% +5.01% -1.30%
YTD +1.62% +1.86% -0.24%
1 Year +20.48% +29.64% -9.16%
3 Years +36.79% +43.63% -6.84%
5 Years +26.46% +7.71% +18.75%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period EFA Fees IEMG Fees You Save
$10.000 10 years $631 $179 $452
$10.000 20 years $2.686 $771 $1.915
$10.000 30 years $8.571 $2.486 $6.085
$50.000 10 years $3.156 $896 $2.260
$50.000 30 years $42.854 $12.428 $30.426
$100.000 30 years $85.707 $24.855 $60.852

Risk Metrics

Based on 5 years of daily returns

Metric EFA IEMG
Annualized Volatility 16.6% 18.1%
Max Drawdown -32.4% -38.5%
Sharpe Ratio 0.10 -0.08

Dividend Comparison

Metric EFA IEMG
Annual Dividend (per share) $3.25 $1.85
Dividend Yield 3.29% 2.63%
Distribution Frequency Semi-Annual or Annual Semi-Annual or Annual

Top Holdings

0 of top 10 holdings overlap (0% overlap in top holdings)

EFA Top Holdings

NameWeight
ASML Holding N.V.!ams/ASML2.54%
AstraZeneca PLC!lon/AZN1.46%
Novartis AG!swx/NOVN1.41%
Roche Holding AG!swx/ROP1.36%
HSBC Holdings plc!lon/HSBA1.36%
Shell plc!lon/SHEL1.31%
Nestlé S.A.!swx/NESN1.22%
Toyota Motor Corporation!tyo/72031.00%
Commonwealth Bank of Australia!asx/CBA0.99%
Mitsubishi UFJ Financial Group, Inc.!tyo/83060.95%

IEMG Top Holdings

NameWeight
Taiwan Semiconductor Manufacturing Company Limited!tpe/233011.60%
Samsung Electronics Co., Ltd.!krx/0059304.66%
Tencent Holdings Limited!hkg/07003.32%
SK hynix Inc.!krx/0006602.75%
Alibaba Group Holding Limited!hkg/99882.22%
China Construction Bank Corporation!hkg/09390.82%
Delta Electronics, Inc.!tpe/23080.76%
HDFC Bank Limited!nse/HDFCBANK0.75%
Reliance Industries Limited!nse/RELIANCE0.71%
Hon Hai Precision Industry Co., Ltd.!tpe/23170.65%

Which One Should You Choose?

Choose IEMG if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose IEMG if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose EFA if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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