ETF Versus

EEM vs IYR

iShares MSCI Emerging Markets ETF vs iShares U.S. Real Estate 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
IYR iShares

iShares U.S. Real Estate ETF (IYR) is an exchange-traded fund issued by iShares that provides exposure to U.S. real estate investment trusts (REITs) and real estate companies. It charges an above-average expense ratio of 0.38%. The fund offers a moderate dividend yield of 2.37%. Launched in 2000, the fund has a 26-year track record.

AUM: $3.9B ER: 0.38% Yield: 2.37% Since: Jun 12, 2000

Quick Verdict

IYR is significantly cheaper at 0.38% vs 0.72% expense ratio, saving you approximately $649 per $10,000 invested over 10 years. Over the past year, EEM has significantly outperformed with a 30.5% return vs -1.0%.

Key Metrics

Metric EEM IYR
Expense Ratio 0.72% 0.38%
Dividend Yield 2.1% 2.4%
Fund Family iShares iShares
Category Emerging Markets US Real Estate

Performance Chart

Indexed to 100 at start (5-year comparison)

60 73 86 99 112 125 2021-04 2022-06 2023-09 2024-12 2026-04
EEM +5.8%
IYR +1.0%

Performance Comparison

Period EEM IYR Difference
1 Month -6.94% -6.56% -0.38%
3 Months +1.76% +0.95% +0.81%
6 Months +5.53% -2.23% +7.76%
YTD +1.76% +0.95% +0.81%
1 Year +30.54% -0.97% +31.51%
3 Years +44.74% +12.64% +32.10%
5 Years +5.84% +0.99% +4.85%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period EEM Fees IYR Fees You Save
$10.000 10 years $1.397 $748 $649
$10.000 20 years $5.836 $3.173 $2.664
$10.000 30 years $18.296 $10.097 $8.198
$50.000 10 years $6.984 $3.739 $3.246
$50.000 30 years $91.478 $50.486 $40.992
$100.000 30 years $182.957 $100.972 $81.985

Risk Metrics

Based on 5 years of daily returns

Metric EEM IYR
Annualized Volatility 18.6% 18.8%
Max Drawdown -39.5% -36.9%
Sharpe Ratio -0.09 -0.13

Dividend Comparison

Metric EEM IYR
Annual Dividend (per share) $1.22 $2.25
Dividend Yield 2.12% 2.37%
Distribution Frequency Semi-Annual or Annual Quarterly

Top Holdings

0 of top 10 holdings overlap (0% 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%

IYR Top Holdings

NameWeight
Welltower Inc.WELL10.03%
Prologis, Inc.PLD9.11%
Equinix, Inc.EQIX4.68%
Digital Realty Trust, Inc.DLR4.59%
Simon Property Group, Inc.SPG4.50%
Realty Income CorporationO4.44%
American Tower CorporationAMT4.39%
Public StoragePSA3.40%
Ventas, Inc.VTR3.15%
CBRE Group, Inc.CBRE3.10%

Which One Should You Choose?

Choose IYR if...

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

Choose EEM if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

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