# IEMG vs VWO vs EIMI: which ETF for UAE residents?

Source page: https://www.rudowealth.com/etf/compare/iemg-vs-vwo-vs-eimi

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.

| ETF | Name | Domicile | Index | Dividends | Expense ratio | Listing |
|---|---|---|---|---|---|---|
| IEMG | iShares Core MSCI Emerging Markets ETF | United States | MSCI Emerging Markets IMI | Paid out twice a year | 0.09% | NYSE Arca, US dollars |
| VWO | Vanguard FTSE Emerging Markets ETF | United States | FTSE Emerging Markets All Cap China A Inclusion | Paid out quarterly | 0.06% | NYSE Arca, US dollars |
| EIMI | iShares Core MSCI EM IMI UCITS ETF (Acc) | Ireland (UCITS) | MSCI Emerging Markets IMI | Reinvested (accumulating) | 0.18% | London, US dollars |
| VFEA | Vanguard FTSE Emerging Markets UCITS ETF (USD, Acc) | Ireland (UCITS) | FTSE Emerging | Reinvested (accumulating) | 0.17% | London, US dollars |

Returns in US dollars (3 years and longer annualised):

| ETF | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| IEMG | +23.80% | +23.15% | +8.53% | +8.78% |
| VWO | +10.30% | +18.17% | +6.26% | +7.50% |

What differs for an investor living in the UAE:
- US estate tax: 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 above US$60,000 of US assets, at rates that rise to 40%. Ireland-domiciled UCITS ETFs 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.
- The outcome depends on your nationality, residence and facts, so confirm your own position with a tax adviser. Sources: IRS (https://www.irs.gov/individuals/international-taxpayers/some-nonresidents-with-us-assets-must-file-estate-tax-returns; https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z).

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RuDo Wealth is a fee-only cross-border advisory operating through two separate companies. India: RuDo Wealth Investment Advisory, SEBI Registered Investment Adviser, registration INA000019503. UAE: RuDo Digital Wealth, FSRA Financial Services Permission 220155, Category 3C (Retail), ADGM. The entity permitted to serve you depends on your country of residence.

General information, not a recommendation to buy or sell any fund. Past performance does not indicate future returns.