IEMG covers rising markets solely, whereas ACWX consists of non-U.S. developed and rising markets.
IEMG is extra inexpensive on charges, however ACWX pays a barely larger dividend yield.
ACWX has seen a smaller drawdown and decrease volatility over 5 years, and has outperformed IEMG on current complete return.
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The iShares Core MSCI Rising Markets ETF (NYSEMKT:IEMG) costs a decrease expense ratio and focuses on rising markets, whereas the iShares MSCI ACWI ex US ETF (NASDAQ:ACWX) gives broader non-U.S. publicity with a barely larger yield and fewer danger over current intervals.
IEMG and ACWX each provide worldwide fairness publicity, however their approaches differ. IEMG targets solely rising markets throughout all market caps, whereas ACWX holds large- and mid-cap non-U.S. shares. This comparability explores how these variations play out in value, returns, danger, and composition.
Metric | IEMG | ACWX |
|---|
Issuer | IShares | IShares |
Expense ratio | 0.09% | 0.32% |
1-yr return (as of 2026-01-09) | 36.8% | 34.2% |
Dividend yield | 2.7% | 2.7% |
Beta | 0.96 | 1.02 |
AUM | $120.1 billion | $7.9 billion |
Beta measures worth volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents complete return over the trailing 12 months.
IEMG is available in because the extra inexpensive possibility with a a lot decrease expense ratio, whereas ACWX gives a modestly larger dividend yield for these searching for earnings alongside worldwide diversification.
Metric | IEMG | ACWX |
|---|
Max drawdown (5 y) | -37.16% | -30.06% |
Development of $1,000 over 5 years | $1,083 | $1,267 |
ACWX holds 1,751 shares spanning developed and rising markets, excluding the U.S. and Canada, with a sector combine led by Monetary Companies at 25%, adopted by Expertise and Industrials at 15% every. The most important positions are Taiwan Semiconductor Manufacturing at 3.83%, Tencent Holdings Ltd at 1.48%, and ASML Holding Nv at 1.33%. The fund has been round for 17.8 years, providing broad, diversified worldwide publicity with none notable quirks or overlays.
Against this, IEMG focuses solely on rising markets and is considerably bigger, holding 2,725 shares. Its sector tilt favors Expertise at 26%, Monetary Companies at 21%, and Shopper Cyclical at 12%. Prime holdings embody Taiwan Semiconductor Manufacturing at 10.73%, Tencent Holdings Ltd at 4.14%, and Samsung Electronics Ltd at 3.70%, leading to larger focus among the many largest emerging-market firms.
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Though the iShares Core MSCI Rising Markets ETF (IEMG) and the iShares MSCI ACWI ex US ETF (ACWX) each embody worldwide markets, their totally different approaches warrant consideration.
ACWX has a broader focus than IEMG, encompassing each developed and rising markets outdoors the U.S. and Canada. That’s why one in every of its largest holdings is ASML, a Dutch firm. Because the ETF consists of developed markets, it tends to carry much less danger than IEMG, as demonstrated by its decrease max drawdown. It’s a big fund sporting good liquidity. Nevertheless, that decrease danger comes with larger charges.
IEMG targets rising markets particularly, and that comes with a better danger profile, but additionally the chance for extra upside than ACWX. Its low value is a lovely attribute as nicely. This ETF is for buyers who need publicity solely to rising markets for his or her development potential, and are keen to tackle extra danger.
ACWX gives broad publicity to all markets outdoors the U.S., and is the higher alternative than IEMG for buyers who need to cut back their danger profile with a mixture of secure developed and high-growth rising markets.
ETF: Change-traded fund that holds a basket of securities and trades like a inventory.
Expense ratio: Annual fund payment, expressed as a share of property, deducted from returns.
Dividend yield: Annual dividends paid by a fund divided by its present share worth.
Rising markets: Economies transitioning towards developed standing, usually with larger development and better danger.
Developed markets: Economies with mature monetary techniques, larger incomes, and extra secure rules.
Non-U.S. publicity: Investments in securities issued by firms outdoors the USA.
Max drawdown: The most important peak-to-trough decline in worth over a specified interval.
Volatility: The diploma to which an funding’s worth fluctuates over time.
Beta: Measure of an funding’s volatility relative to a benchmark, usually the S&P 500.
Whole return: Funding efficiency together with worth adjustments plus dividends, assuming dividends are reinvested.
Sector tilt: When a fund allocates extra of its property to sure industries than the broader market.
AUM (Belongings beneath administration): Whole market worth of all property managed by a fund.
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Robert Izquierdo has positions in ASML and Taiwan Semiconductor Manufacturing. The Motley Idiot has positions in and recommends ASML, Taiwan Semiconductor Manufacturing, and Tencent. The Motley Idiot has a disclosure coverage.
Higher iShares Worldwide ETF: ACWX vs. IEMG was initially printed by The Motley Idiot
