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Emerging Markets Surge: IEMG Outshines IEFA in Returns

2/9/2026

Summary

Story summary

iShares Core MSCI Emerging Markets ETF (IEMG), which targets emerging markets, posted a one-year return of 37.83%, higher than iShares Core MSCI EAFE ETF (IEFA)'s 28.70% focused on developed markets.
Although IEMG outperformed in the short term, IEFA shows greater stability and higher five-year cumulative growth.
IEFA's top holdings include Taiwan Semiconductor and Samsung Electronics, emphasizing Asian tech exposure.
Investors should weigh emerging-market volatility against developed-market stability when making decisions.

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Story summary

iShares Core MSCI Emerging Markets ETF (IEMG), which targets emerging markets, posted a one-year return of 37.83%, higher than iShares Core MSCI EAFE ETF (IEFA)'s 28.70% focused on developed markets.
Although IEMG outperformed in the short term, IEFA shows greater stability and higher five-year cumulative growth.
IEFA's top holdings include Taiwan Semiconductor and Samsung Electronics, emphasizing Asian tech exposure.
Investors should weigh emerging-market volatility against developed-market stability when making decisions.