IEMG vs EEM: Same Markets, 7x the Fee
Both are iShares emerging-market funds holding nearly the same companies. IEMG charges 0.09%. EEM charges 0.68%. The fee gap is the whole story.
IEMG and EEM are both iShares emerging-market funds tracking nearly identical MSCI indexes, holding the same Taiwan Semiconductor, Tencent, Samsung, and Alibaba at the top. The differences are small: IEMG reaches further down into small caps with about 2,800 holdings, while EEM holds around 1,200 large and mid-caps. The difference that matters is the fee. IEMG charges 0.09%. EEM charges 0.68%, roughly seven times more. On $10,000 that is $9 a year versus $68 a year, and the gap compounds for decades. EEM is older (2003) and still carries more daily trading volume, which is why active traders and institutions sometimes prefer it for short-term positions and options. But for a buy-and-hold investor, paying 0.68% for emerging-market exposure you can get for 0.09% is leaving money on the table for no added return. IEMG was iShares' own answer to its expensive legacy fund, built for exactly this investor. Unless you are trading EEM's liquidity specifically, IEMG is the obvious long-term hold.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
📋 IEMG vs EEM — Key Facts Side by Side
| Metric | IEMG | EEM |
|---|---|---|
| Fund Name | iShares Core MSCI Emerging Markets ETF | iShares MSCI Emerging Markets ETF |
| Issuer | iShares | iShares |
| Tracks Index | MSCI Emerging Markets IMI | MSCI Emerging Markets |
| Expense Ratio | 0.09% ✓ | 0.68% |
| Cost per $10K/yr | $9.00 | $68.00 |
| AUM | $151.2B | $28.1B |
| Holdings | 2,800 | 1,200 |
| Inception | 2012 | 2003 |
| 1-Year Return | +44.43% | +45.94% |
| 3-Year Return | +22.60% | +22.70% |
| 5-Year Return | +7.43% | +6.68% |
| Dividend Yield | 2.37% | 1.91% |
| Holdings Overlap | Very high. Both track emerging markets from iShares and hold largely the same companies. IEMG includes more small caps; EEM is large and mid-cap only. — see full overlap → | |
| Avg Bid-Ask Spread | 0.02% | 0.02% |
Expense ratio, AUM, and returns updated May 25, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 IEMG vs EEM — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy IEMG or EEM?
- You want the lowest fees — saves ~$59/yr per $10K vs EEM
- You want broader diversification (2,800 holdings vs 1,200)
- You already use iShares and prefer staying within their fund family
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
⚙️ Want the Full Interactive Comparison?
Side-by-side holdings overlap, sector breakdown, and live performance tabs, all in one place.
Run Full IEMG vs EEM Comparison → Free · No signup · Instant resultsGlobal ETF investing made simple — one concept a week
Currency risk, hedged vs unhedged, emerging vs developed — demystified in plain English.
Free to learn forever · No spam · Unsubscribe anytime
❓ IEMG vs EEM — Frequently Asked Questions
New to ETF investing? See answers to the most common ETF questions →