What does 'diversified emerging markets' mean for IEMG and SPEM?

Both IEMG and SPEM are classified as 'Diversified Emerging Mkts', meaning they invest in a broad range of companies across developing economies. Diversification spreads risk so poor performance in one country or sector doesn't dominate the fund. While IEMG holds $161.8 billion in assets, SPEM holds $17.7 billion, but both aim for wide exposure. Neither fund's specific index is available, so exact diversification methods vary.

How do expense ratios differ between IEMG and SPEM?

SPEM has a lower expense ratio at 0.07%, compared to IEMG's 0.09%. This means for every $10,000 invested, SPEM charges $7 annually while IEMG charges $9. Although IEMG is larger at $161.8 billion versus SPEM's $17.7 billion, the fee difference remains small. Lower costs can slightly improve long-term returns, but actual expenses depend on fund management efficiency.

Why does SPEM have a longer operational history than IEMG?

SPEM launched on 19 March 2007, while IEMG started on 18 October 2012. This five-year gap means SPEM has experienced more market cycles, though longer history doesn't guarantee better performance. Both funds offer diversified emerging market exposure, with IEMG now managing $161.8 billion versus SPEM's $17.7 billion. Historical track records are valuable but not predictive of future results.

What types of companies do IEMG and SPEM invest in?

SPEM's known top holdings include banks (IBN), semiconductor makers (UMC), e-commerce (PDD) and financial services (NU), while IEMG's top holdings are not available. Both funds target emerging market companies, but SPEM's disclosed positions show financial and tech exposure. Without IEMG's holdings, sector comparisons are impossible. Neither fund's exact index tracking is disclosed.

Are there any shared holdings between IEMG and SPEM?

Based on the provided top holdings, there are no shared top-10 positions between IEMG and SPEM. SPEM's visible top holdings (IBN, UMC, PDD, NU) do not overlap with IEMG's unavailable list. However, the complete portfolios might contain identical companies outside the top 10, as both track similar markets.

Which fund offers a higher dividend yield currently?

SPEM has a higher dividend yield at 2.43%, while IEMG provides 2.15%. This 0.28 percentage point difference means SPEM pays more in distributions relative to its price, potentially attracting income-focused investors. Yields fluctuate with share prices and dividend changes, so historical payments may differ from current rates.

How do IEMG and SPEM track emerging markets?

Neither IEMG nor SPEM discloses their exact index tracking methodology. IEMG is named for the MSCI Emerging Markets Index but provides no tracking details. SPEM similarly lacks transparent benchmark information. Both funds claim diversified emerging market exposure, but without index data, their specific country or sector biases are unknown.

How do emerging market risks affect these funds?

Emerging markets like those in IEMG and SPEM are more volatile than developed markets. Political instability, currency fluctuations and economic shifts can cause sharp price swings. Both funds carry these inherent risks regardless of size (IEMG: $161.8 billion; SPEM: $17.7 billion). Lower costs won't reduce this structural market exposure.

Are IEMG and SPEM suitable for long-term investing?

These funds may suit long-term diversification goals since emerging markets need time to realise growth potential. IEMG's 0.09% and SPEM's 0.07% expense ratios help minimise costs over decades. Both track volatile markets unsuitable for short-term trading. Investors should assess risk tolerance against possible decade-long stagnation periods in emerging economies.

How should I compare these funds before investing?

Compare costs (SPEM: 0.07% vs IEMG: 0.09%), dividend yields (SPEM: 2.43% vs IEMG: 2.15%) and size (IEMG: $161.8B vs SPEM: $17.7B). Note IEMG's top holdings are unavailable, while SPEM lists IBN, UMC, PDD and NU. Review sector data when disclosed. Both lack index transparency, requiring reliance on general emerging market exposure.

IEMG vs SPEM

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

Compare IEMG and SPEM fees, holdings, dividends and market tracking. IEMG tracks with 0.09% expenses on $161.8B net assets. SPEM offers 0.07% expenses on $17.7B. Educational content, not financial advice.

Compare IEMG and SPEM fees, holdings, dividends and market tracking. IEMG tracks with 0.09% expenses on $161.8B net assets. SPEM offers 0.07% expenses on $17.7B. Educational content, not financial adv...

Fund Snapshot

Key Fund Metrics

IEMG

Metric

SPEM

0.09%

Expense Ratio

0.07%

2.15%

Dividend Yield

2.43%

$161.78B

Net Assets

$17.71B

2,925

Holdings

2,816

Oct 18, 2012

Inception Date

Mar 19, 2007

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Index Tracked

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Diversified Emerging Mkts

Fund Category

Diversified Emerging Mkts

SPEM costs about $2.00 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 SCHE

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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

iShares Core MSCI Emerging Markets ETF offers extensive market coverage with $161.8 billion net assets.
The 0.09% expense ratio represents competitive pricing for such a large diversified emerging markets fund.
A 2.15% dividend yield provides investors with a reasonable income stream from the fund's holdings.

Considerations

Specific index tracking details are unavailable for this fund, limiting transparency on benchmark alignment.
Larger fund size might lead to slightly lower flexibility compared to more agile smaller emerging markets funds.
Top holdings data is unavailable, preventing detailed analysis of current portfolio composition and concentration.

SPEM

Pros

SPDR Portfolio Emerging Markets ETF features a lower 0.07% expense ratio than its larger competitor.
Established in 2007, it has a longer operational history compared to many similar emerging markets ETFs.
A 2.43% dividend yield surpasses many other diversified emerging markets options, offering stronger income potential.

Considerations

With $17.7 billion in assets, it is smaller than the leading fund, potentially affecting liquidity.
Limited information about sector weights and broader top holdings restricts comprehensive portfolio risk analysis.
Specific index methodology details are unavailable, creating uncertainty about its exact tracking objectives and limitations.

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About IEMG and SPEM

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.

SPEM (SPEM)

The SPDR Portfolio Emerging Markets ETF (SPEM) is designed to provide investors with broad exposure to emerging market economies. It seeks to track the investment results of an index composed of emerging market equities. With net assets of USD 17.71 billion and over 2,800 holdings, it offers diversified access to a wide range of companies across various emerging sectors. The fund maintains a low expense ratio of 0.07%, which can help minimise costs for long-term investors. It has a dividend yield of 2.43%, offering a component of income alongside potential growth. Launched in March 2007, this ETF is suitable for those looking to gain a foothold in global markets, though it carries the inherent risks associated with investing in emerging economies, including volatility and regulatory changes.

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Published: 31 July 2025

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