Vanguard and iShares ETFs Compared: Developed vs Emerging Markets and Large‑Cap vs Small‑Cap Growth
The Vanguard FTSE Developed Markets ETF (VEA) and iShares Core MSCI Emerging Markets ETF (IEMG) offer broad international equity exposure at low cost. VEA tracks developed economies outside the U.S., charging a 0.03% expense ratio and yielding about 2.6% with a 5‑year drawdown of 29.7%. IEMG focuses on higher‑growth emerging markets, has a 0.09% expense ratio, a 2.17% yield and a 33.7% five‑year drawdown. Both funds are heavily weighted toward technology, but IEMG’s tilt is roughly 40% of its holdings.
The Vanguard S&P 500 Growth ETF (VOOG) and iShares Morningstar Small‑Cap Growth ETF (ISCG) target U.S. growth stocks at opposite market‑cap ends. VOOG concentrates on mega‑cap tech leaders, with a 0.07% expense ratio, 18.77% one‑year return and a 32.74% five‑year drawdown. ISCG spreads across 929 small‑cap stocks, charging 0.06%, delivering a 22.26% one‑year return and a 41.47% five‑year drawdown. VOOG’s portfolio is 52.4% technology, while ISCG’s top sectors are industrials (23.9%) and technology (22.5%).