ETF Versus

EEM vs IEMG

iShares MSCI Emerging Markets ETF vs iShares Core MSCI Emerging Markets ETF

Last updated: 2026-04-02

EEM iShares

iShares MSCI Emerging Markets ETF (EEM) is an exchange-traded fund issued by iShares that provides exposure to stocks in emerging market economies with higher growth potential. It charges a high expense ratio of 0.72%. The fund offers a moderate dividend yield of 2.12%. Launched in 2003, the fund has a 23-year track record.

AUM: $24.5B ER: 0.72% Yield: 2.12% Since: Apr 7, 2003
IEMG iShares

iShares Core MSCI Emerging Markets ETF (IEMG) is an exchange-traded fund issued by iShares that provides exposure to stocks in emerging market economies with higher growth potential. It charges a low expense ratio of 0.09%. The fund offers an attractive dividend yield of 2.63%. Launched in 2012, the fund has a 14-year track record.

AUM: $132.2B ER: 0.09% Yield: 2.63% Since: Oct 18, 2012

Quick Verdict

IEMG is significantly cheaper at 0.09% vs 0.72% expense ratio, saving you approximately $1.218 per $10,000 invested over 10 years. Both funds have delivered similar 1-year returns (30.5% vs 29.6%), tracking closely. Income investors may prefer IEMG for its higher yield (2.6% vs 2.1%).

Key Metrics

Metric EEM IEMG
Expense Ratio 0.72% 0.09%
Dividend Yield 2.1% 2.6%
Fund Family iShares iShares
Category Emerging Markets Emerging Markets

Performance Chart

Indexed to 100 at start (5-year comparison)

60 72 84 96 108 120 2021-04 2022-06 2023-09 2024-12 2026-04
EEM +5.8%
IEMG +7.7%

Performance Comparison

Period EEM IEMG Difference
1 Month -6.94% -6.83% -0.11%
3 Months +1.76% +1.86% -0.10%
6 Months +5.53% +5.01% +0.52%
YTD +1.76% +1.86% -0.10%
1 Year +30.54% +29.64% +0.90%
3 Years +44.74% +43.63% +1.11%
5 Years +5.84% +7.71% -1.87%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period EEM Fees IEMG Fees You Save
$10.000 10 years $1.397 $179 $1.218
$10.000 20 years $5.836 $771 $5.066
$10.000 30 years $18.296 $2.486 $15.810
$50.000 10 years $6.984 $896 $6.088
$50.000 30 years $91.478 $12.428 $79.051
$100.000 30 years $182.957 $24.855 $158.102

Risk Metrics

Based on 5 years of daily returns

Metric EEM IEMG
Annualized Volatility 18.6% 18.1%
Max Drawdown -39.5% -38.5%
Sharpe Ratio -0.09 -0.08

Dividend Comparison

Metric EEM IEMG
Annual Dividend (per share) $1.22 $1.85
Dividend Yield 2.12% 2.63%
Distribution Frequency Semi-Annual or Annual Semi-Annual or Annual

Top Holdings

10 of top 10 holdings overlap (100% overlap in top holdings)

EEM Top Holdings

NameWeight
Taiwan Semiconductor Manufacturing Company Limited!tpe/233013.38%
Samsung Electronics Co., Ltd.!krx/0059305.37%
Tencent Holdings Limited!hkg/07003.82%
SK hynix Inc.!krx/0006603.17%
Alibaba Group Holding Limited!hkg/99882.55%
China Construction Bank Corporation!hkg/09390.95%
Delta Electronics, Inc.!tpe/23080.88%
HDFC Bank Limited!nse/HDFCBANK0.87%
Reliance Industries Limited!nse/RELIANCE0.82%
Hon Hai Precision Industry Co., Ltd.!tpe/23170.75%

IEMG Top Holdings

NameWeight
Taiwan Semiconductor Manufacturing Company Limited!tpe/233011.60%
Samsung Electronics Co., Ltd.!krx/0059304.66%
Tencent Holdings Limited!hkg/07003.32%
SK hynix Inc.!krx/0006602.75%
Alibaba Group Holding Limited!hkg/99882.22%
China Construction Bank Corporation!hkg/09390.82%
Delta Electronics, Inc.!tpe/23080.76%
HDFC Bank Limited!nse/HDFCBANK0.75%
Reliance Industries Limited!nse/RELIANCE0.71%
Hon Hai Precision Industry Co., Ltd.!tpe/23170.65%

Which One Should You Choose?

Choose IEMG if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose IEMG if...

you prioritize dividend income and want higher regular distributions from your portfolio.

Either works if...

you just need broad emerging markets exposure. Both are solid options — pick whichever your brokerage offers commission-free.

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