ETF Versus

IEMG vs SHY

iShares Core MSCI Emerging Markets ETF vs iShares 1-3 Year Treasury Bond ETF

Last updated: 2026-04-02

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
SHY iShares

iShares 1-3 Year Treasury Bond ETF (SHY) is an exchange-traded fund issued by iShares that provides exposure to short-duration U.S. Treasury bonds with low interest rate risk. It charges a low expense ratio of 0.15%. The fund offers an attractive dividend yield of 3.76%. Launched in 2002, the fund has a 24-year track record.

AUM: $24.6B ER: 0.15% Yield: 3.76% Since: Jul 22, 2002

Quick Verdict

IEMG has a slightly lower expense ratio (0.09% vs 0.15%), saving about $119 per $10,000 over 10 years. Over the past year, IEMG has significantly outperformed with a 29.6% return vs -0.2%. Income investors may prefer SHY for its higher yield (3.8% vs 2.6%).

Key Metrics

Metric IEMG SHY
Expense Ratio 0.09% 0.15%
Dividend Yield 2.6% 3.8%
Fund Family iShares iShares
Category Emerging Markets US Short-Term Treasury

Performance Chart

Indexed to 100 at start (5-year comparison)

65 76 87 98 109 120 2021-04 2022-06 2023-09 2024-12 2026-04
IEMG +7.7%
SHY -4.5%

Performance Comparison

Period IEMG SHY Difference
1 Month -6.83% -0.59% -6.24%
3 Months +1.86% -0.65% +2.51%
6 Months +5.01% -0.57% +5.58%
YTD +1.86% -0.65% +2.51%
1 Year +29.64% -0.19% +29.83%
3 Years +43.63% +0.29% +43.34%
5 Years +7.71% -4.51% +12.22%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IEMG Fees SHY Fees You Save
$10.000 10 years $179 $298 $119
$10.000 20 years $771 $1.278 $507
$10.000 30 years $2.486 $4.109 $1.624
$50.000 10 years $896 $1.490 $594
$50.000 30 years $12.428 $20.547 $8.120
$100.000 30 years $24.855 $41.094 $16.239

Risk Metrics

Based on 5 years of daily returns

Metric IEMG SHY
Annualized Volatility 18.1% 2.1%
Max Drawdown -38.5% -6.7%
Sharpe Ratio -0.08 -2.55

Dividend Comparison

Metric IEMG SHY
Annual Dividend (per share) $1.85 $3.10
Dividend Yield 2.63% 3.76%
Distribution Frequency Semi-Annual or Annual Monthly

Top Holdings

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...

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

Choose SHY if...

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

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