The iShares Core MSCI Emerging Markets ETF (IEMG) is outperforming the Vanguard FTSE Emerging Markets ETF (VWO) year-to-date, largely because IEMG includes South Korea as an emerging market while VWO excludes it, classifying South Korea as developed. South Korea's strong tech sector, led by giants like Samsung and SK Hynix, significantly boosts IEMG's returns. Additionally, IEMG has a heavier weighting in the technology sector, which has been a major driver of global market gains. Investors should consider their exposure preferences and diversification needs when choosing between these ETFs, as VWO offers broader holdings and excludes South Korea, while IEMG provides significant South Korean tech exposure.
