What is the fee difference between EEM and IEMG?

EEM charges 0.72% a year while IEMG charges 0.09%. On $10,000 invested that is about $72 for EEM and $9 for IEMG, a gap of $63 a year. Over a decade that difference compounds into a meaningful drag, which is why IEMG is often described as the low-cost core version of the same exposure.

What indexes do EEM and IEMG track?

EEM tracks the MSCI Emerging Markets index, which covers large and mid-cap stocks in emerging economies, with 1,215 holdings. IEMG tracks the MSCI Emerging Markets IMI, the investable market index that adds small caps, giving it 2,915 holdings. The country and sector mix is very similar because both start from the same MSCI universe.

How much do EEM and IEMG overlap?

Their top ten holdings are identical: Taiwan Semiconductor, Samsung Electronics, SK hynix, Tencent, Alibaba, MediaTek, Samsung preferred shares, China Construction Bank, Delta Electronics and Hon Hai. Weights are slightly higher in EEM, for example Taiwan Semiconductor at 15.37% versus 13.51%, because IEMG spreads assets across more small caps.

How do the dividend yields compare?

IEMG yields 2.16% and EEM yields 1.63%. Part of the gap reflects IEMG's much lower expense ratio, since fees are deducted before distributions reach shareholders. On $10,000 that is roughly $216 a year from IEMG versus $163 from EEM before taxes, although emerging market dividends can vary from year to year.

Which fund suits which investor?

IEMG suits long-term investors building a core emerging markets allocation, because its 0.09% fee and broader coverage are hard to beat. EEM, launched in 2003, is often used by traders and institutions who value its long history and large-cap focus. For a buy-and-hold retail investor, the cost difference is usually decisive.

How do EEM and IEMG compare on size?

IEMG is much larger with $161.78 billion in net assets, compared with $31.27 billion for EEM. Both are highly liquid funds from BlackRock's iShares range, so ordinary retail trades in either are straightforward. EEM's long history means it remains widely traded despite being the smaller fund.

Is IEMG riskier because it holds small caps?

Marginally. IEMG's 2,915 holdings include emerging market small caps, which can be more volatile and less liquid than the large caps in EEM. However, these smaller companies carry low weights, and both funds are dominated by the same large names, so the overall risk profile of the two funds is closely aligned.

What about taxes on emerging markets ETFs?

Dividends from emerging market companies may have foreign withholding tax deducted before they reach the fund, and your own country may tax distributions again depending on your account type. The rules vary widely, so check how foreign dividends are treated where you live and consider a tax adviser for anything beyond the basics.

Can I hold both EEM and IEMG?

You can, but they overlap almost entirely, so holding both adds no diversification while keeping you exposed to EEM's higher fee. Some investors hold legacy EEM positions to avoid realizing gains and put new money into IEMG. If starting fresh, one fund is normally enough for emerging markets exposure.

EEM vs IEMG

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

iShares MSCI Emerging Markets ETF (EEM) and iShares Core MSCI Emerging Markets ETF (IEMG) share an issuer and their top ten holdings, led by Taiwan Semiconductor and Samsung. EEM charges 0.72% across 1,215 holdings; IEMG charges 0.09% across 2,915 and yields 2.16% versus 1.63%. IEMG suits long-term holders; EEM suits investors who want the older large-cap fund. Educational content, not financial advice.

iShares MSCI Emerging Markets ETF (EEM) and iShares Core MSCI Emerging Markets ETF (IEMG) share an issuer and their top ten holdings, led by Taiwan Semiconductor and Samsung. EEM charges 0.72% across ...

Fund Snapshot

Key Fund Metrics

EEM

Metric

IEMG

0.72%

Expense Ratio

0.09%

1.63%

Dividend Yield

2.16%

$31.27B

Net Assets

$161.78B

1,215

Holdings

2,915

Apr 7, 2003

Inception Date

Oct 18, 2012

MSCI Emerging Markets

Index Tracked

MSCI Emerging Markets IMI

Diversified Emerging Markets

Fund Category

Diversified Emerging Markets

IEMG costs about $63.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	EEM	IEMG
TPE: 2330Taiwan Semiconductor Manufacturing Company Limited	15.37%	13.51%
KRX: 005930Samsung Electronics Co., Ltd.	7.01%	6.16%
KRX: 000660SK hynix Inc.	5.72%	5.03%
HKG: 0700Tencent Holdings Limited	2.73%	2.40%
HKG: 9988Alibaba Group Holding Limited	1.84%	1.62%
TPE: 2454MediaTek Inc.	1.67%	1.47%
005935.KQSAMSUNG ELECTRONICS NON VOTING PRE	0.92%	0.81%
HKG: 0939China Construction Bank Corporation	0.85%	0.75%
TPE: 2308Delta Electronics, Inc.	0.84%	0.74%
TPE: 2317Hon Hai Precision Industry Co., Ltd.	0.79%	0.69%

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Investment Analysis

EEM

Pros

Trading since April 2003, one of the longest-running emerging markets ETFs
Tracks the widely followed MSCI Emerging Markets index of large and mid caps
Top holdings include Taiwan Semiconductor at 15.37% and Samsung at 7.01%

Considerations

Expense ratio of 0.72% is eight times IEMG's 0.09%
Costs $72 a year per $10,000 invested, $63 more than IEMG
Dividend yield of 1.63% is below IEMG's 2.16%

IEMG

Pros

Expense ratio of 0.09%, or $9 a year per $10,000 invested
Broader index covering 2,915 holdings, including small caps
Larger fund with $161.78 billion in net assets versus $31.27 billion

Considerations

Small-cap holdings can be less liquid and more volatile
Taiwan Semiconductor alone is 13.51% of the fund, a heavy single-stock weight
Launched in October 2012, so its track record is shorter than EEM's

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About EEM and IEMG

EEM (EEM)

EEM is the iShares MSCI Emerging Markets ETF, designed to give investors broad exposure to large- and mid-cap equity markets in emerging economies. The fund seeks to track the MSCI Emerging Markets Index, offering a single-line route to companies across China, Taiwan, India, Brazil and other developing markets. Investors should note ETFs can have tracking error versus their index and returns are not guaranteed. EEM is typically used for diversified emerging-market equity exposure, tactical allocation or as a complement to developed-market holdings. Key considerations include higher volatility, currency and political risk relative to developed markets, sector and country concentration (for example, a heavy weight to specific countries or sectors), and the impact of commodity cycles. This information is educational and not personalised advice; suitability depends on an investor’s objectives, time horizon and risk tolerance. Always consider reading the fund’s prospectus and, if needed, consult a regulated financial adviser.

IEMG (IEMG)

iShares Core MSCI Emerging Markets ETF (IEMG) provides broad exposure to equities in emerging-market countries by tracking the MSCI Emerging Markets Investable Market Index. It includes large-, mid- and small-cap companies across a wide range of economies, offering diversified access to fast-growing regions that can complement developed-market holdings. As an ETF, IEMG trades like a stock on exchanges, with intraday liquidity and market pricing. Investors should weigh potential benefits—diversification and emerging-market growth prospects—against distinct risks: higher volatility, political and currency risk, and regional liquidity differences. Performance can fluctuate materially and past performance is no guarantee of future returns. This information is for general educational purposes only and does not constitute personal investment advice; suitability depends on individual circumstances and investors should consult a financial adviser if unsure.

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