What is the expense ratio of EEM vs LQD?

EEM has an expense ratio of 0.72%, while LQD has an expense ratio of 0.14%.

EEM vs LQD

iShares MSCI Emerging Markets ETF vs iShares iBoxx $ Investment Grade Corporate Bond 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

LQD iShares

iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is an exchange-traded fund issued by iShares that provides exposure to investment-grade U.S. corporate bonds. It charges a low expense ratio of 0.14%. The fund offers a high dividend yield of 4.53%. Launched in 2002, the fund has a 24-year track record.

AUM: $29.2B ER: 0.14% Yield: 4.53% Since: Jul 22, 2002

Quick Verdict

LQD is significantly cheaper at 0.14% vs 0.72% expense ratio, saving you approximately $1.119 per $10,000 invested over 10 years. Over the past year, EEM has significantly outperformed with a 30.5% return vs 0.0%. Income investors may prefer LQD for its higher yield (4.5% vs 2.1%).

Key Metrics

Metric	EEM	LQD
Expense Ratio	0.72%	0.14%
Dividend Yield	2.1%	4.5%
Fund Family	iShares	iShares
Category	Emerging Markets	US Investment Grade Corporate

Performance Chart

Indexed to 100 at start (5-year comparison)

EEM +5.8%

LQD -16.4%

Performance Comparison

Period	EEM	LQD	Difference
1 Month	-6.94%	-2.04%	-4.90%
3 Months	+1.76%	-1.36%	+3.12%
6 Months	+5.53%	-2.59%	+8.12%
YTD	+1.76%	-1.36%	+3.12%
1 Year	+30.54%	+0.00%	+30.54%
3 Years	+44.74%	-1.16%	+45.90%
5 Years	+5.84%	-16.40%	+22.24%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment	Period	EEM Fees	LQD Fees	You Save
$10.000	10 years	$1.397	$278	$1.119
$10.000	20 years	$5.836	$1.194	$4.643
$10.000	30 years	$18.296	$3.841	$14.455
$50.000	10 years	$6.984	$1.391	$5.593
$50.000	30 years	$91.478	$19.203	$72.275
$100.000	30 years	$182.957	$38.406	$144.551

Risk Metrics

Based on 5 years of daily returns

Metric	EEM	LQD
Annualized Volatility	18.6%	8.7%
Max Drawdown	-39.5%	-27.9%
Sharpe Ratio	-0.09	-0.89

Dividend Comparison

Metric	EEM	LQD
Annual Dividend (per share)	$1.22	$4.92
Dividend Yield	2.12%	4.53%
Distribution Frequency	Semi-Annual or Annual	Monthly

Top Holdings

EEM Top Holdings

Name	Weight
Taiwan Semiconductor Manufacturing Company Limited!tpe/2330	13.38%
Samsung Electronics Co., Ltd.!krx/005930	5.37%
Tencent Holdings Limited!hkg/0700	3.82%
SK hynix Inc.!krx/000660	3.17%
Alibaba Group Holding Limited!hkg/9988	2.55%
China Construction Bank Corporation!hkg/0939	0.95%
Delta Electronics, Inc.!tpe/2308	0.88%
HDFC Bank Limited!nse/HDFCBANK	0.87%
Reliance Industries Limited!nse/RELIANCE	0.82%
Hon Hai Precision Industry Co., Ltd.!tpe/2317	0.75%

Which One Should You Choose?

Choose LQD 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.

Choose LQD if...

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

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