IEMG vs VWO vs EIMI for UAE residents
All four funds hold shares in emerging markets, but on two index families: IEMG and EIMI track MSCI Emerging Markets IMI, while VWO and VFEA track FTSE indices (VWO's includes China A shares, VFEA's does not). For an investor living in the UAE the other differences are cost, domicile, dividends and how US tax treats each one.
The funds side by side
| ETF | Domicile | Index | Dividends | Expense ratio | Listing | Launched |
|---|---|---|---|---|---|---|
| IEMG iShares Core MSCI Emerging Markets ETF | United States | MSCI Emerging Markets IMI | Paid out twice a year | 0.09% a year | NYSE Arca, US dollars | 2012 |
| VWO Vanguard FTSE Emerging Markets ETF | United States | FTSE Emerging Markets All Cap China A Inclusion | Paid out quarterly | 0.06% a year | NYSE Arca, US dollars | 2005 |
| EIMI iShares Core MSCI EM IMI UCITS ETF (Acc) | Ireland (UCITS) | MSCI Emerging Markets IMI | Reinvested (accumulating) | 0.18% a year | London, US dollars | 2014 |
| VFEA Vanguard FTSE Emerging Markets UCITS ETF (USD, Acc) | Ireland (UCITS) | FTSE Emerging | Reinvested (accumulating) | 0.17% a year | London, US dollars | 2019 |
Expense ratios as reported by our market data, 1 Oct 2026. Figures for EIMI, VFEA come from the Xetra listing of the same fund (same ISIN), which trades in euros.
Returns in US dollars
| ETF | 1 year | 3 years (annualised) | 5 years (annualised) | 10 years (annualised) | Volatility 3Y |
|---|---|---|---|---|---|
| IEMG | +23.80% | +23.15% | +8.53% | +8.78% | 19.42% |
| VWO | +10.30% | +18.17% | +6.26% | +7.50% | 16.47% |
Total returns with dividends reinvested, to 1 Oct 2026. Returns over 3 years and longer are compounded annual returns. EIMI, VFEA are left out of this table because our data for them is in euros, and a euro return would differ from the US dollar return by the currency move alone. The London US dollar listing tracks the same index, so its return differs mainly by cost and by the lower tax on US dividends inside the fund. Past performance does not indicate future returns.
What differs for an investor living in the UAE
- US estate tax. IEMG, VWO are domiciled in the United States, so their shares count as US assets. For a person who is not a US citizen or resident, US estate tax can apply above US$60,000 of US assets, at rates that rise to 40%. EIMI, VFEA, domiciled in Ireland, are generally not treated as US assets for this tax.
- Tax on US dividends. The UAE has no income tax treaty with the United States, so US dividends paid to a UAE resident usually have 30% withheld. An Irish UCITS fund pays 15% on the US dividends it receives, under the US and Ireland treaty, and these funds reinvest the rest.
- Cost. Compare the expense ratios above; on funds tracking the same index, a lower yearly cost is the most certain difference in what you keep.
- Where you buy. The US funds trade in New York in US dollars; the UCITS funds named here trade in London in US dollars. Check which your broker offers and what it charges for each market.
The outcome depends on your nationality, residence and facts, so confirm your own position with a tax adviser. Sources: IRS, estate tax for nonresidents and US income tax treaties, checked October 2026.
Questions
Do IEMG, VWO, EIMI track the same thing?
Not exactly. IEMG tracks the MSCI Emerging Markets IMI; VWO tracks the FTSE Emerging Markets All Cap China A Inclusion; EIMI tracks the MSCI Emerging Markets IMI; VFEA tracks the FTSE Emerging. Their returns differ for that reason as well as cost.
Why does domicile matter for someone living in the UAE?
A US-domiciled ETF counts as a US asset. For a person who is not a US citizen or resident, US estate tax can apply to US assets above US$60,000, at rates that rise to 40%, and US dividends paid to a UAE resident usually have 30% withheld because the UAE has no income tax treaty with the United States. Ireland-domiciled UCITS ETFs are generally not treated as US assets for estate tax, and the fund pays 15% on its US dividends under the US and Ireland treaty. The outcome depends on your nationality, residence and facts, so confirm your position with a tax adviser.
What does accumulating mean?
An accumulating fund reinvests its dividends inside the fund instead of paying them out, so no dividend reaches your account. A distributing fund pays dividends out, usually every quarter.