Vanguard Total World Stock ETF vs iShares Emerging Markets ETF. Which Is the Better Fund to Cover the Globe in Your Portfolio?
IEMG delivered stronger 1-year returns, but VT's lower expense ratio and shallower drawdowns appeal to risk-conscious investors seeking diversified global exposure.
Overview
The Vanguard Total World Stock ETF (NYSEMKT:VT) provides exposure to global equities including the United States, while the iShares Core MSCI Emerging Markets ETF (NYSEMKT:IEMG) targets exclusively developing economies.
Investors seeking a single-fund solution for global stock exposure often weigh these two instruments. While both cover international markets, the Vanguard fund includes a massive allocation to domestic U.S. giants. In contrast, IEMG specializes in the higher-growth, higher-volatility segment of emerging markets, providing a more targeted geographic bet for diversified portfolios that already have U.S. exposure.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.