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.

Updated October 14, 2026

How these figures are calculated: methodology.

Best for

EEMInvestors who want broad equity exposure.
IEMGInvestors who want higher current income (1.67% vs 1.09% 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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

EEM has outpaced IEMG over the trailing twelve months, posting a 23.94% total return against 23.17%. The picture flips over 10 years, though — IEMG has compounded at 8.69% a year, ahead of EEM at 8.08%. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Symbol	YTD cumulative	1Y cumulative	3Y annualized	5Y annualized	10Y annualized	Since Oct 2012	Volatility	Sharpe	Sortino	Max drawdown
EEM	18.31%	23.94%	22.21%	7.13%	8.08%	5.36%	20.0%	0.78	1.12	-17.3%
IEMG	17.93%	23.17%	21.87%	7.64%	8.69%	6.03%	19.5%	0.79	1.13	-17.2%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 14, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Oct 2012” measures every fund from October 22, 2012 — the start of shared available history — 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	EEM	IEMG
Full name	iShares MSCI Emerging Markets ETF	iShares Core MSCI Emerging Markets ETF
Issuer	iShares	iShares
Underlying index	MSCI Emerging Markets Index	MSCI Emerging Markets Investable Market Index
Last Close	$64.39 as of October 14, 2026	$78.64 as of October 14, 2026
Distribution rate	1.09%	1.67%
Trailing 12-month yield	1.73%	2.29%
Distribution Safety Score™	84	70
Safety-Adjusted Yield	0.92%	1.17%
Expense ratio	0.72%	0.09%
AUM	$31.0B	$160B
Distribution frequency	Semi-Annual	Semi-Annual
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	1.0	1.0
Last dividend	$0.351	$0.658
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 (1.67% vs 1.09% for EEM).

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iShares

ETFs467

Total AUM$4.70T

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

iShares, operated by BlackRock, is one of the largest and most established ETF providers globally, known for offering broad, liquid index-tracking funds across nearly all asset classes and investment styles. The lineup encompasses a comprehensive range of strategies including core equity and bond exposure, dividend and income-focused funds, covered call strategies, ESG and thematic investments, factor-based approaches, alternatives, commodities, and municipal bonds, serving both individual and institutional investors. With numerous popular ticker symbols and extensive diversification across geographies, sectors, and investment objectives, iShares provides one of the market's widest selections of ETFs for building diversified portfolios.

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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 1.67% vs 1.09% 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 0.72%.

They have different reference exposures: EEM is linked to MSCI Emerging Markets Index while IEMG is linked to MSCI Emerging Markets Investable Market Index, which means their performance drivers differ.

IEMG is the larger fund by assets ($160B), but assets alone do not establish trading costs or liquidity.

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Deep dive

Yield & income

On a $10,000 investment, EEM would generate roughly $54.50 cash per distribution, while IEMG would produce $83.50 cash per distribution, at current distribution rates. Both pay semi-annual distributions.

EEM yield1.09%

IEMG yield1.67%

Cash diff on $10K$29.00

Cost & efficiency

Over 10 years on $10,000, EEM would cost approximately $720 in fees vs $90 for IEMG (simplified, not compounded). The $630.00 difference may be offset by yield or performance.

EEM ER0.72%

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 international approach.

EEM beta1.0

IEMG beta1.0

Fund details

EEM is managed by iShares (launched 04/07/2003) with $31.0B in assets. IEMG is managed by iShares (launched 10/18/2012) with $160B in assets.

EEM AUM$31.0B

IEMG AUM$160B

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Frequently asked questions

What is the current distribution rate for EEM and IEMG?

EEM currently distributes 1.09% and IEMG 1.67%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

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 international approach. They are issued by iShares and iShares respectively.

Can I hold both EEM and IEMG?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is EEM or IEMG safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — EEM scores 84, IEMG scores 70, so EEM's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, EEM or IEMG?

EEM has an expense ratio of 0.72% 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 $54.50 cash per distribution ($109.00 annually). The same in IEMG would produce about $83.50 cash per distribution ($167.00 annually).

Which has performed better historically, EEM or IEMG?

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Dividend dates and history

EEM vs IEMG — at a glance

Generated October 10, 2026.

Overview

Both EEM and IEMG are equity ETFs tracking emerging-market indexes, but they differ in scope and cost structure. The cost difference is material: IEMG's 0.09% expense ratio versus EEM's 0.72% translates to a meaningful drag on returns over time.

How they differ

The biggest distinction is breadth: IEMG's Investable Market Index holds many more securities than EEM's narrower MSCI index, giving IEMG exposure to small-cap and mid-cap emerging-market companies that EEM excludes. Cost is the second major gap—IEMG charges 0.09%, while EEM charges 0.72%, a difference of 0.63% that compounds significantly over decades. Both track market-cap-weighted emerging-market equity and carry identical betas of 1.0, meaning they move with broad emerging-market volatility similarly.

Who each is best for

EEM: Investors seeking concentrated exposure to the largest emerging-market companies, or those building a multi-fund emerging-market allocation who want a large-cap alternative to complement smaller or mid-cap strategies.

Key risks to know

Emerging-market currency risk. Both funds hold equities denominated in dozens of currencies; swings in the U.S. dollar can significantly impact dollar-based returns independent of stock performance.

Concentration in China and India. The emerging-market universe is skewed toward the largest economies. Both funds will likely hold meaningful positions in Chinese and Indian equities, concentrating geopolitical and regulatory risk in those countries.

Higher volatility and lower liquidity than developed markets. Emerging-market stocks exhibit higher beta and wider bid-ask spreads than U.S. or European equities; market dislocations can persist longer and cost more to trade through.

Index-tracking overlap risk. Because both track highly similar (though not identical) MSCI emerging-market universes, their holdings may overlap substantially; verify the actual top-10 weightings if diversification across these two is a goal.

Bottom line

If you prioritize low costs and broad exposure across emerging-market market caps, IEMG's 0.09% and larger asset base stand out. If you specifically want large-cap concentration or need a complement to other emerging-market holdings, EEM's narrower focus may fit. Both carry emerging-market volatility and currency risk; neither is a low-risk holding. 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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The metrics behind this comparison, explained in the Academy.

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These comparisons follow the Dividend Vision methodology.