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 4, 2026

iShares

ETFs481

Total AUM$4451B

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

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	$65.70 as of July 4, 2026	$79.84 as of July 4, 2026
Distribution yield	1.07%	1.65%
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	12/15/2026	12/15/2026

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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 38.60% total return against 36.26%. The picture flips over 10 years, though — IEMG has compounded at 9.52% a year, ahead of EEM at 8.96%. 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	17.43%	38.60%	20.84%	6.14%	8.96%	5.63%	19.2%	0.76	1.08	-17.3%
IEMG	16.64%	36.26%	20.49%	6.73%	9.52%	6.27%	18.7%	0.76	1.09	-17.2%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 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 1.65% vs 1.07% 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 $8.92/month, while IEMG would produce $13.75/month, at current distribution rates. Both pay semi-annual distributions.

EEM yield1.07%

IEMG yield1.65%

Monthly diff on $10K$4.83

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 $8.92 per month ($107.00 annually). The same in IEMG would produce about $13.75 per month ($165.00 annually).

Which has performed better historically, EEM or IEMG?

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EEM vs IEMG — at a glance

Generated June 2026 from current fund data.

Overview

EEM and IEMG are both emerging-market equity ETFs tracking MSCI indexes, but they differ significantly in construction philosophy and cost structure. EEM follows the narrower MSCI Emerging Markets Index (large and mid-cap stocks), while IEMG tracks the broader MSCI Emerging Markets Investable Market Index, which includes small-cap names. IEMG's lower expense ratio and larger asset base make it the more efficient choice for most investors; EEM appeals primarily to those seeking a more concentrated, historically established EM exposure.

How they differ

The biggest distinction is breadth: IEMG's investable market methodology captures roughly 1,100 stocks versus EEM's roughly 800, giving IEMG exposure to smaller EM companies and greater geographic diversification. Cost is the second major separation—IEMG charges 0.09% annually while EEM costs 0.70%, a 61-basis-point gap that compounds significantly over time and explains why IEMG has accumulated $154B in assets to EEM's $30.1B. The third difference is distribution yield: IEMG yields 1.62% versus EEM's 1.04%, reflecting both its broader dividend capture and the dividend characteristics of smaller-cap stocks in emerging markets.

Who each is best for

EEM: Fits investors who prefer a more established, large-cap-focused EM benchmark and are indifferent to cost differences, or who may already hold it and see no reason to migrate.

IEMG: Designed for investors prioritizing low fees and broad-based EM exposure, including mid and small-cap companies, and who value capital efficiency in a long-term portfolio.

Key risks to know

Index concentration by country and sector: Both funds carry significant exposure to China (roughly 40% of holdings), making them sensitive to Chinese regulatory shifts, geopolitical tensions, and currency movements. Sector tilts toward financials and consumer discretionary in emerging markets amplify cyclical downturns.

Currency risk: Emerging-market stocks are denominated in diverse local currencies. A stronger U.S. dollar reduces unhedged returns even when underlying stocks perform well; conversely, a weaker dollar provides a tailwind.

Small-cap liquidity risk specific to IEMG: The investable market index adds smaller EM companies with lower trading volume. Liquidity in those positions can evaporate during market stress, widening bid-ask spreads and making exits difficult at scale.

Political and credit risk: Emerging economies carry higher sovereign and corporate credit risk than developed markets, including currency crises, policy reversals, and higher default rates during recessions.

Bottom line

If you value low fees and broader exposure to the entire EM opportunity set, IEMG's 0.09% expense ratio and $154B in assets represent a compelling economic advantage over EEM's 0.70% cost structure. If you prefer a more concentrated, large-cap focus or already hold EEM, the trade-off between a slightly higher fee and familiar index construction may feel acceptable. Past performance of emerging markets does not predict future results.

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