IEMG vs. VXUS: Which International ETF Is the Better Buy Right Now?
The Motley Fool
by newsfeedback@fool.com (Katie Brockman)February 23, 2026
AI-Generated Deep Dive Summary
The article compares two popular international equity ETFs—the Vanguard Total International Stock ETF (VXUS) and the iShares Core MSCI Emerging Markets ETF (IEMG)—highlighting their differences in cost, sector mix, global reach, and risk profiles. While both aim to provide diversified exposure to international markets, their approaches diverge significantly, catering to different investor objectives.
Vanguard’s VXUS offers a broader, more balanced portfolio, covering both developed and emerging markets across the globe. Its expense ratio is relatively low, making it an attractive option for investors seeking cost-effective global diversification. On the other hand, iShares’ IEMG focuses exclusively on emerging markets, offering exposure to high-growth regions like Asia, Latin America, and Eastern Europe. While this narrower focus can amplify returns in bull markets, it also increases risk due to higher volatility and sector concentration.
The choice between VXUS and IEMG depends on an investor’s goals and risk tolerance. Those prioritizing stability and diversification may lean toward VXUS for its broader market coverage and lower beta compared to the S&P 500. Meanwhile, those seeking growth opportunities in faster-growing emerging markets might favor IEMG, despite its higher expense ratio and greater volatility. Understanding these differences is crucial for investors aiming to build a well-rounded international portfolio tailored to their financial objectives.
Verticals
financeinvesting
Originally published on The Motley Fool on 2/23/2026