What does the expense ratio represent for IEMG and SCHE?

The expense ratio is an annual fee expressed as a percentage of assets. For IEMG, it is 0.09%, whereas for SCHE, it is 0.06%. These fees reduce net returns over time. A lower expense ratio generally benefits long-term investors, all else being equal. The 0.03 percentage point difference means SCHE is cheaper to hold. Understanding this cost is crucial when comparing similar funds, as even small fee differences compound over decades, potentially impacting final portfolio values significantly. It is a key metric in fund selection.

How do emerging market ETFs like IEMG and SCHE track their markets?

Both IEMG and SCHE are diversified emerging market funds. Specific index tracking details are not available in the provided data. Generally, such funds aim to mirror an underlying index of stocks from developing economies. This passive management approach reduces trading costs. Investors rely on the fund manager to replicate the benchmark's performance. Since exact index names are unavailable here, focus on the category and holdings data to understand their respective approaches to emerging markets exposure and risk management.

Why is net asset size important when comparing IEMG and SCHE?

Net assets indicate the total value of holdings, influencing liquidity. IEMG holds $161.8 billion, suggesting high liquidity and stability. SCHE has $12.9 billion, which also supports reasonable trading activity but is smaller. Larger funds often have tighter bid-ask spreads, reducing transaction costs. However, size alone does not guarantee better performance. Both funds offer emerging market access, but their scale differs significantly. Investors should consider liquidity needs, as very small funds might face wider spreads or less efficient tracking during volatile periods.

How do dividend yields compare between IEMG and SCHE?

Dividend yields reflect income generation potential. IEMG reports a 2.15% yield, while SCHE offers 2.54%. This 0.39 percentage point difference suggests SCHE currently distributes more relative to its share price. Yield depends on underlying holdings' payouts and price fluctuations. Neither figure guarantees future income, as dividends can change. When comparing funds, consider if yield stems from stable companies or temporary factors. A higher yield does not always mean a better fund, as it may carry different risk profiles or sustainability concerns.

Do IEMG and SCHE have significant overlap in top holdings?

According to the data, there are no shared top-10 holdings between IEMG and SCHE. IEMG's top holdings are not available, while SCHE lists PDD (0.56%) and AU (0.46%). This lack of listed overlap suggests different specific stock selections or weighting methods. Even within the same asset class, funds can diverge due to tracking differences or inclusion/exclusion criteria. Investors should not assume identical portfolios simply because both funds target emerging markets. Further investigation into full holdings lists would be needed to assess true divergence.

What are the risks associated with emerging markets funds like IEMG and SCHE?

Emerging markets involve higher volatility due to political, economic, and currency risks compared to developed markets. Both IEMG and SCHE expose investors to these dynamics. Currency fluctuations can significantly impact returns when converted back to the investor's home currency. Regulatory changes or economic slowdowns in developing nations also pose risks. Diversification across countries helps, but concentration risk remains if certain regions dominate. Investors must be comfortable with potential short-term losses and longer recovery periods typical of emerging market investments.

How does inception date influence the performance history of these funds?

SCHE launched on January 14, 2010, while IEMG started on October 18, 2012. SCHE has a slightly longer operational history, encompassing different market cycles. However, both funds have existed for over a decade, providing ample performance data. A longer track record doesn't inherently predict future results. Market conditions vary, and strategies may evolve. When evaluating, consider performance across various environments rather than just longevity. Both funds have survived significant periods of global market volatility, demonstrating resilience in their respective structures.

Which fund is suitable for cost-sensitive investors, IEMG or SCHE?

SCHE, with an expense ratio of 0.06%, is cheaper than IEMG's 0.09%. For cost-sensitive investors, lower fees can enhance net returns over time. However, fees are just one factor. Liquidity, tracking error, and dividend policy also matter. SCHE's smaller net assets ($12.9 billion vs $161.8 billion) might imply less liquidity, though it remains substantial. Always weigh fee savings against other operational aspects. A low cost is beneficial, but ensuring the fund meets broader investment objectives and liquidity needs is equally critical for long-term satisfaction.

How should beginners interpret missing sector weight data for IEMG and SCHE?

Sector weights are not available for either IEMG or SCHE in the provided data. This limits immediate visibility into industry exposure. Beginners should be cautious, as sector concentration impacts risk. Typically, emerging market funds heavily weight financials, consumer goods, and technology. Without data, investors cannot confirm if one fund is more concentrated in a specific sector than the other. Relying solely on category labels may obscure important differences. Seek additional sources for full portfolio transparency to better understand the underlying industry mix and associated risks.

What type of investing goals align with funds like IEMG and SCHE?

Funds like IEMG and SCHE are typically associated with long-term growth and diversification within emerging economies. They suit investors seeking higher return potential than developed markets, accepting greater volatility. These funds are rarely for capital preservation or short-term needs. Investors with a multi-year horizon and tolerance for fluctuations fit best. The focus is on participating in the economic development of emerging nations. Neither fund is recommended over the other, but both serve similar strategic goals of broad international equity exposure.

IEMG vs SCHE

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

This page compares iShares Core MSCI Emerging Markets ETF (IEMG) and Schwab Emerging Markets Equity ETF (SCHE), focusing on expense ratios, dividend yields, and how each fund tracks its market. Note that top holdings for IEMG are not available, while SCHE lists PDD and AU among its top holdings. Educational content, not financial advice.

This page compares iShares Core MSCI Emerging Markets ETF (IEMG) and Schwab Emerging Markets Equity ETF (SCHE), focusing on expense ratios, dividend yields, and how each fund tracks its market. Note t...

Fund Snapshot

Key Fund Metrics

IEMG

Metric

SCHE

0.09%

Expense Ratio

0.06%

2.15%

Dividend Yield

2.54%

$161.78B

Net Assets

$12.89B

2,925

Holdings

2,194

Oct 18, 2012

Inception Date

Jan 14, 2010

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Index Tracked

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Diversified Emerging Mkts

Fund Category

Diversified Emerging Mkts

SCHE costs about $3.00 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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IEMG vs SPEM

Compare IEMG and SPEM on fees, holdings, dividends and tracking. IEMG has 0.09% expenses, SPEM 0.07%. Check net assets and yields before deciding.

IEMG vs VWO

Compare IEMG and VWO fees, dividends, holdings, and tracking. IEMG yields 2.15%, VWO 1.99%. Expense ratios 0.09% and 0.06%. Data as of Sep 2026.

IEMG vs VXUS

IEMG vs VXUS: IEMG holds 2,915 emerging market stocks at 0.09%; VXUS holds 8,860 non-US stocks at 0.05%. Both own Taiwan Semiconductor, Samsung and Tencent.

Investment Analysis

IEMG

Pros

IEMG offers a low expense ratio of 0.09% for broad emerging market exposure.
With $161.8 billion in net assets, IEMG provides substantial liquidity and stability.
Since its 2012 inception, IEMG has maintained a consistent dividend yield of 2.15%.

Considerations

IEMG's expense ratio is 0.09%, which is higher than some competitor alternatives.
Specific top holdings and sector weights for IEMG are not available in the data.
The 2.15% dividend yield may be lower than that of other comparable funds.

SCHE

Pros

SCHE features a very low expense ratio of just 0.06% for emerging market investing.
Since 2010, SCHE has delivered a dividend yield of 2.54%, which is competitive.
SCHE has $12.9 billion in net assets, supporting reasonable trading liquidity.

Considerations

SCHE's net assets are significantly smaller than some larger market competitors.
Specific sector weights for SCHE are not available, limiting sector visibility.
The fund's top holdings like PDD and AU represent small, specific positions only.

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About IEMG and SCHE

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.

SCHE (SCHE)

Schwab Emerging Markets Equity ETF (SCHE) is a passively managed exchange-traded fund that provides broad exposure to large- and mid-cap companies in emerging-market economies. It aims to give investors a cost-efficient route to participate in the growth potential of developing markets, with holdings spread across sectors such as financials, technology and energy — though country and sector weightings can shift with market movements. Benefits include international diversification and typically lower fees than many active strategies; drawbacks include higher volatility, currency fluctuations and political or regulatory risks common to emerging markets. SCHE can form part of a diversified, long-term portfolio for investors seeking international growth exposure, but it is not suitable for those needing short-term capital preservation. This is general educational information, not personal financial advice; values can fall as well as rise and past performance is not a reliable guide to future results.

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