What is the main difference in strategy between iShares Emerging Markets Equity Factor ETF (EMGF) and Core MSCI Emerging Markets iShares (IEMG)?

EMGF focuses on a factor-based approach aimed at enhancing risk-adjusted returns, while IEMG tracks a market-capitalisation-weighted index. This means EMGF tries to beat the standard index by targeting specific factors, whereas IEMG reflects the overall market performance. The two funds have different investment philosophies.

How do I interpret the expense ratio when comparing EMGF and IEMG?

The expense ratio represents the annual cost of owning the fund. EMGF has a higher expense ratio of 0.26% compared to IEMG's 0.09%. Over time, this 0.17 percentage point difference in cost can impact net returns. A lower expense ratio is generally preferred for long-term holdings.

What does market-capitalisation weighting mean for an emerging markets fund like IEMG?

In a market-cap weighted index, the largest companies make up a greater portion of the fund. For IEMG, this means it could be significantly affected by the performance of major emerging markets companies. If those large-cap stocks underperform, it could drag down the fund's overall performance.

Which fund, EMGF or IEMG, is considered more established?

IEMG, with an inception date in October 2012, has been available for nearly a decade longer than EMGF, which was launched in December 2015. As a result, IEMG possesses a longer historical track record, which can be useful for investors seeking established investment options.

How much more assets under management does IEMG have compared to EMGF?

IEMG has approximately 85 times the net assets of EMGF, with $161.8 billion versus $1.9 billion. This significant difference in size might contribute to better liquidity for IEMG, potentially affecting how easily it can be traded, particularly in terms of bid-ask spreads.

Does the expense ratio difference between EMGF and IEMG matter in practice?

While a 0.17% difference in expense ratios may seem small, it compounds over long holding periods. In practice, this can lead to a noticeable difference in net returns over several decades. For cost-sensitive investors, a lower expense ratio often improves long-term outcomes.

How do the dividend yields of EMGF and IEMG compare, and what does this mean?

EMGF has a 1.96% dividend yield, while IEMG offers slightly more at 2.15%. The difference is not substantial, but it suggests that both funds distribute some income to investors. ETFs pass dividends through to shareholders on a regular basis, so these figures represent their expected income contributions.

How do the top holdings overlap between EMGF and IEMG?

There is no overlap among the listed top holdings of EMGF and IEMG. EMGF’s largest position is PDD at 0.51%, while IEMG does not provide top holdings data. This lack of overlap indicates the two funds have different compositions and diversification strategies.

Why might the lack of top holdings data for IEMG be relevant for investors?

Not having access to IEMG’s top holdings and sector weights limits transparency about its concentration and diversification. This is critical for investors who want to assess how exposed they are to specific companies or sectors in the emerging markets. EMGF, on the other hand, provides clear top holding information.

What kind of investor might prefer EMGF over IEMG?

Investors interested in factor-based strategies may gravitate towards EMGF, as it aims to provide enhanced risk-adjusted returns. This option might suit those seeking more tactical exposure compared to the broader market approach of IEMG, which tracks a market-cap weighted index.

What should beginners know before comparing these two funds?

Beginners should first understand that EMGF and IEMG have different goals, costs and liquidity levels. EMGF offers a factor-based approach with a higher expense ratio, while IEMG provides a broad market-capitalisation weighted exposure at a lower cost. Reviewing historical data, expense implications and holdings helps frame any comparison. This page is educational only and does not constitute financial advice.

EMGF vs IEMG

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

Compare iShares Emerging Markets Equity Factor ETF (EMGF) and Core MSCI Emerging Markets iShares (IEMG). This page reviews expense ratios, net assets, dividend yields and inception dates to help you understand how each fund tracks its target market. Educational content, not financial advice.

Compare iShares Emerging Markets Equity Factor ETF (EMGF) and Core MSCI Emerging Markets iShares (IEMG). This page reviews expense ratios, net assets, dividend yields and inception dates to help you u...

Fund Snapshot

Key Fund Metrics

EMGF

Metric

IEMG

0.26%

Expense Ratio

0.09%

1.96%

Dividend Yield

2.15%

$1.95B

Net Assets

$161.78B

788

Holdings

2,925

Dec 8, 2015

Inception Date

Oct 18, 2012

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Index Tracked

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Diversified Emerging Mkts

Fund Category

Diversified Emerging Mkts

IEMG costs about $17.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

EMGF

Pros

Its factor-based approach seeks enhanced risk-adjusted returns versus a standard market-capitalisation-weighted index.
With $1.9 billion in net assets, it provides sufficient liquidity for many institutional and retail investors.
Since inception in December 2015, it has offered a distinct tactical option for emerging markets factor allocation.

Considerations

Its 0.26% expense ratio is significantly higher than a conventional broad emerging markets beta ETF.
Top holdings data indicates extreme diversification, with the largest position at just 0.51%, potentially limiting concentration upside.
Net assets of $1.9 billion are much smaller than flagship emerging markets ETFs, which may impact bid-ask spreads.

IEMG

Pros

Its 0.09% expense ratio offers a highly cost-efficient way to access broad emerging markets exposure.
With $161.8 billion in net assets, it is one of the most liquid and tradable emerging markets ETFs.
Established in October 2012, it has a long track record as a core holding for emerging markets allocation.

Considerations

Standard market-capitalisation weighting means it is highly exposed to any large-cap underperformance in emerging markets.
Its 2.15% dividend yield is only marginally higher than some factor-based alternatives despite its core index approach.
Top holdings and sector weights are not available in the provided data, limiting immediate assessment of its concentration.

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About EMGF and IEMG

EMGF (EMGF)

iShares Emerging Markets Equity Factor ETF (EMGF) is an exchange-traded fund that aims to provide investors with targeted exposure to emerging-market equities using a factor-based, rules‑driven approach. Rather than tracking a broad-cap index, the ETF selects and weights stocks to emphasise specific factors (such as value, quality or momentum) that historically have offered higher long-term returns in different market environments. As an ETF it trades on an exchange like a stock and can offer diversified country and sector exposure within emerging markets at potentially lower cost than buying many individual shares. Investors should understand that factor strategies can underperform conventional indexes for extended periods and that emerging markets carry heightened volatility, political and currency risks. This summary is educational only and not investment advice; investors should consider suitability, fees, taxation and their risk tolerance before investing, and remember that values can fall as well as rise.

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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