IXUS vs IEMG: Which International ETF Fits Your Portfolio in 2026?

While iShares Core MSCI Total International Stock ETF (NASDAQ:IXUS) offers broad exposure across developed and emerging non-U.S. markets, iShares Core MSCI Emerging Markets ETF (NYSEMKT:IEMG) focuses exclusively on developing economies with a notable concentration in the technology sector.

These two funds represent different tiers of international exposure for long-term investors. The total international fund provides a "one-stop" solution for non-U.S. equities, including stable developed markets like Japan. In contrast, the emerging markets fund targets higher potential growth in developing nations. The assets under management (AUM) for these funds reflect their popularity among institutional and retail investors alike.

Snapshot (cost & size)

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 as of the close of trading on August 6.

IEMG is slightly more expensive with a 0.09% expense ratio compared to the 0.07% fee for IXUS. Additionally, investors in the total international fund currently receive a higher payout, with a 0.63 percentage point yield advantage over the emerging markets fund.

Performance & risk comparison

What's inside

The iShares Core MSCI Emerging Markets ETF leans heavily into technology, which accounts for 39% of the portfolio, followed by financial services at 19% and consumer cyclical companies at 9%. Its largest positions include Taiwan Semiconductor Manufacturing at 13.6%, Samsung Electronics Ltd at 6.4%, and SK Hynix at 4.9%. The fund manages 2,846 holdings and it was launched in 2012. iShares Core MSCI Emerging Markets ETF has paid $1.80 per share over the trailing 12 months, which on its recent ~$79.34 share price works out to a 2.3% yield.

The iShares Core MSCI Total International Stock ETF provides broader diversification with 4,477 holdings, led by financial services at 24%, technology at 20%, and industrials at 15%. Its largest positions include Taiwan Semiconductor Manufacturing at 4.21%, Samsung Electronics Ltd at 1.86%, and SK Hynix at 1.6%. This fund also launched in 2012. iShares Core MSCI Total International Stock ETF has paid $2.80 per share over the trailing 12 months, which on its recent ~$96.37 share price works out to a 2.9% yield.

For more guidance on ETF investing, check out the full guide at this link.

Which looks like the better buy?

These two iShares ETFs carry some similarities. Both provide inexpensive exposure to non-U.S. markets, both focus primarily on large cap stocks (less than 17% of holdings are in mid-caps for each, and less than 5% in small caps in each fund), and six of their top 10 holdings are the same equities.

But there are some differences that investors may want to consider before casting their lot with one ETF or the other. IXUS, the total international stock market fund, allocates just 13% of its assets to its top 10 holdings, compared to the more concentrated 32% of IEMG, the iShares emerging markets ETF.

IEMG is also more invested in emerging markets (to be expected, honestly) with 50% of the fund in those regions compared to 16% for its brethren. Each fund has about 1% of assets in the U.S., so the balance is in developed, non-U.S. markets, which means about 82% of IXUS’ assets are in those regions, veruss 49% for IEMG.

Performance is what most long term investors care about. Here the two funds are split, depending on if you want to focus long-term or shorter term for returns. IXUS beats IEMG on the 5- and 10-year look-backs, with 8.8%, and 9.4% annualized returns, respectively. It beats its peer by about half a percentage point to a full point in those periods.

IEMG is better over the past three years (17.7% versus 17%) and year-to-date (16.8% to 13.1%).

These are both good international funds are cheap costs and good returns. I prefer IEMG’s diversified portfolio and the high growth potential of emerging markets, which the fund has enjoyed in recent years.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.