VGE and IEM overlap by about 73%: owning both mostly doubles up. VGE is cheaper (0.48% vs 0.69% a year), about $210 a year less on $100,000. VGE is the bigger fund ($2.2b vs $1.8b). Both cover emerging markets. VGE also holds small companies and more Chinese shares listed in China, for a lower fee; IEM holds large and mid-sized companies.
📅 As at 30 September 2026: fees, size, flows and returns from the TMX Australia funds report; overlap from published holdings as at 30 September 2026.
VGE
Vanguard Ftse Emerging Markets Shares ETFVGE invests in thousands of companies in emerging markets such as Taiwan, China, India and Brazil.
IEM
iShares MSCI Emerging Markets ETFIEM invests in large and mid-sized companies across emerging markets such as Taiwan, South Korea, China and India.
VGE vs IEM side by side
Green marks the cheaper, bigger or better-performing fund on each line. Past returns are not a reliable guide to the future.
| VGE | IEM | |
|---|---|---|
| Issuer | Vanguard | iShares (BlackRock) |
| Index | FTSE Emerging Markets All Cap China A Inclusion Index | MSCI Emerging Markets Index |
| Fee (a year) | 0.48% | 0.69% |
| Size | $2.2b | $1.8b |
| Net money in, September | +$35m | −$2m |
| 1-year return | +6.0% | +21.2% |
| 5-year return | +33% | +48% |
| Listed | 2013 | 2007 |
| Top 10 holdings | 39% of fund | 46% of fund |
| Trend now | Base | Base |
How much do VGE and IEM overlap?
About 73% of their holdings are the same, by weight: high overlap, so owning both mostly doubles up.
The biggest companies they both own
| Company | VGE | IEM |
|---|---|---|
| Taiwan Semiconductor Manufacturing Co LtdInformation Technology | 22.4% | 19.2% |
| Tencent Holdings LtdInformation Technology | 4.0% | 3.2% |
| Alibaba Group Holding LtdConsumer Discretionary | 3.0% | 2.2% |
| MediaTek IncInformation Technology | 2.7% | 1.9% |
| China Construction Bank CorpFinancials | 1.3% | 1.2% |
| Hon Hai Precision Industry Co LtdInformation Technology | 1.1% | 1.0% |
| Petroleo Brasileiro SAEnergy | 1.0% | 0.9% |
| HDFC Bank LtdFinancials | 1.0% | 0.9% |
| Delta Electronics IncInformation Technology | 1.3% | 0.9% |
| ICICI Bank LtdFinancials | 0.9% | 0.8% |
Only in VGE
- PDD Holdings Inc 0.7%
Only in IEM
- Samsung Electronics Co Ltd 9.6%
- SK hynix Inc 6.3%
- SK Square Co Ltd 0.7%
- Samsung Electro-Mechanics Co Ltd 0.5%
Sectors and countries
Sectors
Countries
Trend: base, uptrend or downtrend?
Past year of prices, shaded by trend stage. The dashed line is the 200-day exponential average. As at 4 November 2026. How base and trend works.
VGE or IEM: which suits who?
Where either fits depends on the rest of your portfolio: whether it’s your core or a satellite. See core and satellite investing and our full profiles of VGE and IEM.
See the exact overlap with everything you hold, plus the trend of each ETF, in our free calculator.
More comparisons
VGE vs IEM FAQs
Is VGE or IEM better?
Neither is better for everyone. Both cover emerging markets. VGE also holds small companies and more Chinese shares listed in China, for a lower fee; IEM holds large and mid-sized companies. Choose VGE if you want broader emerging markets coverage for a lower fee. Choose IEM if you prefer the MSCI emerging markets index and a focus on larger companies.
What is the difference between VGE and IEM?
VGE and IEM overlap by about 73%: owning both mostly doubles up. VGE is cheaper (0.48% vs 0.69% a year), about $210 a year less on $100,000. VGE is the bigger fund ($2.2b vs $1.8b). Both cover emerging markets. VGE also holds small companies and more Chinese shares listed in China, for a lower fee; IEM holds large and mid-sized companies.
Should I own both VGE and IEM?
Usually there’s little point. With 73% overlap, owning both mostly doubles up on the same companies. Pick one.
Which is cheaper, VGE or IEM?
VGE is cheaper (0.48% vs 0.69% a year), about $210 a year less on $100,000. Fees are taken from the fund’s returns, not charged separately.
Fees, size, flows and returns: TMX Australia Funds Report to 30 September 2026; returns are total returns and the 5-year figure is cumulative. Overlap, sectors and countries are based on each fund’s published holdings, scaled to the part of each fund we can see. Trend stages are a technical indicator based on 10, 20, 50 and 200-day exponential moving averages; they describe the past, not the future. General information only, not a recommendation to buy or sell VGE or IEM. Consider the PDS and TMD, and your own circumstances, before investing.