EEM Offers Focused Growth While IXUS Provides Broad Safety

Core Insights - The iShares MSCI Emerging Markets ETF (EEM) and iShares Core MSCI Total International Stock ETF (IXUS) serve different investment purposes, with IXUS providing broader access to developed and emerging non-U.S. stocks, while EEM focuses on large- and mid-cap companies in emerging markets [1][2] Cost and Size Comparison - IXUS has a significantly lower expense ratio of 0.07% compared to EEM's 0.72% - As of March 26, 2026, IXUS has a one-year return of 26.05%, while EEM has a higher return of 32.5% - IXUS offers a higher dividend yield of 2.9% compared to EEM's 1.9% - IXUS has an Assets Under Management (AUM) of $52.4 billion, while EEM has an AUM of $25.6 billion [3][4] Performance and Risk Comparison - Over the past five years, IXUS experienced a maximum drawdown of -30%, while EEM had a larger drawdown of -37.8% - An investment of $1,000 in IXUS would have grown to $1,426 over five years, compared to $1,212 for EEM [5] Portfolio Composition - EEM is concentrated in emerging markets with a strong tilt towards technology (34%), followed by financial services (21%) and consumer discretionary (10%) - EEM holds over 1,000 companies, with significant positions in Taiwan Semiconductor Manufacturing (13.2%), Samsung Electronics (5.5%), and Tencent Holdings (3.8%) [6] - IXUS, on the other hand, has more than 4,000 holdings across developed and emerging markets, with financial services (23%), information technology (15.8%), and industrials (15.6%) as its largest sectors - Its top holdings are less concentrated, including Taiwan Semiconductor Manufacturing (3.6%), Samsung Electronics (1.5%), and ASML Holding (1.4%) [7] Investment Implications - Investors are advised to consider international markets for diversification, but must make informed decisions regarding allocation between EEM and IXUS - EEM focuses solely on emerging markets, which can offer high growth potential but also come with increased volatility and currency risks [8][9]