ETF Comparison

EEM vs IEMG: Which Is the Better Pick in 2026?

A head-to-head comparison of iShares MSCI Emerging Markets ETF and iShares Core MSCI Emerging Markets ETF covering yield, cost, risk, and income potential.

Data updated July 9, 2026

iShares

ETFs481

Total AUM$4452B

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iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

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Side-by-side snapshot

	EEM	IEMG
Full name	iShares MSCI Emerging Markets ETF	iShares Core MSCI Emerging Markets ETF
Issuer	iShares	iShares
Last Close	$66.78 as of July 9, 2026	$81.02 as of July 9, 2026
Distribution yield	1.05%	1.62%
Distribution Safety Score	78	72
Expense ratio	0.70%	0.09%
AUM	$30.1B	$154B
Distribution frequency	Semi-Annual	Semi-Annual
Underlying index	MSCI Emerging Markets Index	MSCI Emerging Markets Investable Market Index
Objective	Provide exposure to the fund's underlying index or strategy per issuer materials.	Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset class	Equity	Equity
Inception date	04/07/2003	10/18/2012
Beta	1.03	1.01
Last dividend	$0.3510	$0.6580
Ex-dividend date	06/15/2026	06/15/2026

Bottom lineChoose EEM if you want broad equity exposure. Choose IEMG if you want higher current income (1.62% vs 1.05% for EEM).

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

EEM has outpaced IEMG over the trailing twelve months, posting a 40.76% total return against 38.30%. The picture flips over 10 years, though — IEMG has compounded at 9.73% a year, ahead of EEM at 9.19%. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Oct 2012	Volatility	Sharpe	Sortino	Max drawdown
EEM	19.36%	40.76%	22.10%	7.36%	9.19%	5.75%	19.3%	0.81	1.15	-17.3%
IEMG	18.36%	38.30%	21.64%	7.82%	9.73%	6.38%	18.8%	0.81	1.16	-17.2%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 9, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Oct 2012” measures every fund from October 22, 2012 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

EEM (iShares MSCI Emerging Markets ETF) and IEMG (iShares Core MSCI Emerging Markets ETF) are both semi-annual-pay dividend ETFs, but they take different approaches.

IEMG offers the higher yield at 1.62% vs 1.05% for EEM. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

IEMG is cheaper with an expense ratio of 0.09% compared to 0.70%.

They track different benchmarks: EEM is linked to MSCI Emerging Markets Index while IEMG tracks MSCI Emerging Markets Investable Market Index, which means their performance drivers differ.

IEMG is the larger fund by assets ($154B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, EEM would generate roughly $8.75/month, while IEMG would produce $13.50/month, at current distribution rates. Both pay semi-annual distributions.

EEM yield1.05%

IEMG yield1.62%

Monthly diff on $10K$4.75

Cost & efficiency

Over 10 years on $10,000, EEM would cost approximately $700 in fees vs $90 for IEMG (simplified, not compounded). The $610.00 difference may be offset by yield or performance.

EEM ER0.70%

IEMG ER0.09%

Strategy & risk

EEM tracks MSCI Emerging Markets Index with an index approach, while IEMG tracks MSCI Emerging Markets Investable Market Index with an index approach. Beta is 1.03 for EEM and 1.01 for IEMG, indicating IEMG is less volatile relative to the market.

EEM beta1.03

IEMG beta1.01

Fund details

EEM is managed by iShares (launched 04/07/2003) with $30.1B in assets. IEMG is managed by iShares (launched 10/18/2012) with $154B in assets.

EEM AUM$30.1B

IEMG AUM$154B

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Frequently asked questions

Is EEM or IEMG better for dividend income?

It depends on your goals. IEMG currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between EEM and IEMG?

EEM (iShares MSCI Emerging Markets ETF) tracks MSCI Emerging Markets Index with an index approach, while IEMG (iShares Core MSCI Emerging Markets ETF) tracks MSCI Emerging Markets Investable Market Index with an index approach. They are issued by iShares and iShares respectively.

Can I hold both EEM and IEMG?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, EEM or IEMG?

EEM has an expense ratio of 0.70% while IEMG charges 0.09%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in EEM vs IEMG generate?

At current rates, $10,000 in EEM would generate roughly $8.75 per month ($105.00 annually). The same in IEMG would produce about $13.50 per month ($162.00 annually).

Which has performed better historically, EEM or IEMG?

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EEM vs IEMG — at a glance

Generated July 2026 from current fund data.

Overview

EEM and IEMG are both iShares ETFs tracking emerging-market equity, but they differ in scope and cost structure. EEM tracks the MSCI Emerging Markets Index, a more concentrated basket of large and mid-cap stocks. IEMG tracks the broader MSCI Emerging Markets Investable Market Index, which includes small-cap exposure across more holdings. The gap in expense ratios—0.70% vs. 0.09%—is the defining structural difference, and IEMG's much larger asset base ($154B vs. $30.1B) reflects a market shift toward ultra-low-cost core emerging-market exposure.

How they differ

The single biggest difference is breadth and cost: IEMG uses the broader "Investable Market" methodology, capturing smaller companies EEM excludes, while charging 0.61 percentage points less in annual fees. That fee advantage compounds significantly over time—on a $10,000 position, the difference is roughly $61 per year, or $610 over a decade. IEMG also distributes a higher yield at 1.65% versus EEM's 1.07%, though this reflects both the broader small-cap tilt and different payout timing. EEM has been around longer (since 2003) and carries a slightly higher beta of 1.03 to IEMG's 1.01, suggesting marginally more volatility, though both track the same broad market.

Who each is best for

EEM: Fits investors who want a more focused, large-cap-leaning emerging-market portfolio with a longer track record and don't mind paying a higher fee for index purity or brand familiarity.

IEMG: Fits investors seeking the broadest, most cost-efficient emerging-market equity exposure, including small caps, for core portfolio building or long-term accumulation where fee drag matters.

Key risks to know

Index concentration: Both funds face significant country and sector concentration typical of emerging markets. China and India often represent 40% or more of holdings; a slowdown in either creates correlated downside across the portfolio.

Emerging-market currency volatility: EEM and IEMG are unhedged, so movements in emerging currencies (particularly the Chinese yuan, Indian rupee, and Brazilian real) will amplify or dampen returns for dollar-based investors.

Small-cap liquidity risk in IEMG: IEMG's tilt toward smaller emerging-market companies introduces lower trading liquidity in those holdings, which may widen bid-ask spreads during market stress or larger redemptions.

Political and regulatory risk: Emerging markets are exposed to policy shifts, capital controls, and governance uncertainty that developed markets face less frequently. China's regulatory actions on tech and finance have shown how quickly sentiment can shift.

Bottom line

If you prioritize the lowest possible fees and broadest index representation, IEMG's 0.09% expense ratio and $154B in AUM make it the more economical core holding. If you prefer historical track record and a tighter, large-cap focus, EEM offers that at the cost of a steeper fee drag. Both track the same market with nearly identical betas, so the choice hinges on cost sensitivity and whether small-cap exposure aligns with your strategy. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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