Alternatives in the same category

Invesco MSCI Emerging Markets vs iShares MSCI Mexico Capped

Invesco MSCI Emerging Markets tracks MSCI Emerging Markets and iShares MSCI Mexico Capped tracks MSCI Mexico IMI 25/50. They are realistic alternatives for the same slot in a portfolio, but because the indices are different nobody can tell you in advance which will return more. What can be compared objectively is the cost, the replication method, the domicile and how each one is structured — and that is what this page does.

What each one tracks

This is the underlying difference: they do not follow the same index, so their returns will diverge.

Invesco MSCI Emerging Markets

MSCI Emerging Markets

iShares MSCI Mexico Capped

MSCI Mexico IMI 25/50

Comparison

Invesco MSCI Emerging MarketsiShares MSCI Mexico Capped
IndexMSCI Emerging MarketsMSCI Mexico IMI 25/50
TER0.18%0.74%
Hist. return*~6%~6%
ReplicationPhysicalPhysical
DistributionAccumulatingDistributing
DomicileIrlandaIrlanda
CurrencyUSDUSD
Risk4/75/7
ISINIE00B3DWVS88IE00B6R51W86

What the fee gap actually costs

Applying the SAME 7% gross return to both and contributing €300/month, the only thing moving the result is the TER. This is not a return forecast: it is how much the fee weighs.

HorizonInvesco MSCI Emerging MarketsiShares MSCI Mexico CappedDifference
10 years€51,706€50,124€1,583
20 years€153,776€143,709€10,067
30 years€355,262€318,439€36,823

Invesco MSCI Emerging Markets is the cheaper of the two. Remember they track different indices: cost is one factor, not the verdict.

Nobody can know which will perform better: they track different indices and past performance is not a prediction. What is objective today is the cost, the replication, the domicile and the distribution policy.

Invesco

Invesco MSCI Emerging Markets

iShares

iShares MSCI Mexico Capped

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Frequently asked questions

What is the difference between Invesco MSCI Emerging Markets and iShares MSCI Mexico Capped?+

They track different indices: Invesco MSCI Emerging Markets follows MSCI Emerging Markets and iShares MSCI Mexico Capped follows MSCI Mexico IMI 25/50. They also differ in cost (0.18% vs 0.74% TER), replication (physical vs physical) and domicile (Irlanda vs Irlanda).

Which one will perform better?+

Nobody can know that: they track different indices, so their returns will diverge, and past index performance is not a prediction. What you can control today is the cost, the tax structure and whether the index actually covers what you want exposure to.

Which one is cheaper?+

Invesco MSCI Emerging Markets has the lower annual fee. Applying the same 7% gross return to both with €300/month, that fee gap alone is worth about €10,067 after 20 years — that part is arithmetic, not a forecast.

Accumulating or distributing?+

Invesco MSCI Emerging Markets is accumulating (dividends are reinvested inside the fund) and iShares MSCI Mexico Capped is distributing (dividends are paid out to you). For long-term compounding in Spain, accumulating usually defers taxation; distributing gives you income you are taxed on each year.

Can I hold both?+

Yes. Unlike two funds tracking the identical index, these give you genuinely different exposure, so holding both is not automatically redundant — just be aware you may end up overlapping on the largest companies and doubling your rebalancing work.

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