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 August 19, 2026

Best for

EEMInvestors who want broad equity exposure.
IEMGInvestors who want higher current income (1.65% vs 1.07% 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 34.19% total return against 32.20%. The picture flips over 10 years, though — IEMG has compounded at 8.71% a year, ahead of EEM at 8.09%. 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	1Y	3Y	5Y	10Y	Since Oct 2012	Volatility	Sharpe	Sortino	Max drawdown
EEM	18.16%	34.19%	22.68%	8.08%	8.09%	5.62%	19.8%	0.81	1.16	-17.3%
IEMG	17.71%	32.20%	22.26%	8.62%	8.71%	6.28%	19.2%	0.82	1.17	-17.2%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 19, 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.

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
Last Close	$65.34 as of August 19, 2026	$79.63 as of August 19, 2026
Distribution yield	1.07%	1.65%
Distribution Safety Score™	45	63
Expense ratio	0.72%	0.09%
AUM	$30.5B	$159B
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	1.04	1.02
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 (1.65% vs 1.07% for EEM).

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See how much monthly income a hypothetical investment would generate in each ETF at current yields.

iShares

ETFs473

Total AUM$4710B

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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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 0.72%.

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 ($159B), which generally means tighter spreads and better liquidity.

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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 $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 index approach. Beta is 1.04 for EEM and 1.02 for IEMG — effectively similar market sensitivity.

EEM beta1.04

IEMG beta1.02

Fund details

EEM is managed by iShares (launched 04/07/2003) with $30.5B in assets. IEMG is managed by iShares (launched 10/18/2012) with $159B in assets.

EEM AUM$30.5B

IEMG AUM$159B

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Frequently asked questions

What is the current distribution yield for EEM and IEMG?

EEM currently distributes 1.07% and IEMG 1.65%, based on fund data updated August 2026. Distribution yield 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 index 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 — IEMG scores 63, EEM scores 45, so IEMG'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 $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 August 15, 2026.

Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.

Overview

EEM and IEMG are both iShares ETFs tracking emerging-market equities, but they differ meaningfully in construction and cost. EEM tracks the narrower MSCI Emerging Markets Index, while IEMG tracks the broader MSCI Emerging Markets Investable Market Index, which includes a larger set of securities and market-cap tiers. The most striking difference is their expense ratios: IEMG charges 0.09%, while EEM charges 0.70%—a 0.61 percentage-point gap that compounds over time.

How they differ

The core structural difference is index breadth. IEMG's Investable Market Index is designed to capture more securities and smaller-cap exposure than EEM's standard MSCI index, which may introduce higher turnover but also a wider opportunity set. Financially, this shows up immediately in fees: IEMG's 9-basis-point expense ratio is one-seventh of EEM's 70 basis points, a material drag on long-term returns. IEMG also yields 1.62% versus EEM's 1.05%, a gap partly explained by its larger, more recent AUM base of $157B versus EEM's $30.2B. Both trade with similar beta (1.02 for IEMG, 1.04 for EEM) and distribute semi-annually, so their market sensitivity and income timing are comparable.

Who each is best for

EEM: Fits investors who prefer the narrower, more established MSCI Emerging Markets benchmark and value the longer track record of a fund launched in 2003, despite the higher fee structure.

IEMG: Designed for cost-conscious emerging-market investors who prioritize minimizing expense-ratio drag and are comfortable with a broader, more inclusive index methodology that includes smaller and mid-cap exposure.

Key risks to know

Index construction overlap: Both track MSCI emerging-market indexes that share significant regional and sector overlap. Holdings may cluster in similar geographies and industries, meaning performance drivers tend to move together.

Currency exposure: Emerging-market ETFs carry unhedged exposure to foreign-currency fluctuations against the dollar. A stronger dollar headwind can erode returns independent of underlying stock performance.

Concentration in Asia-Pacific: Both indexes weight heavily toward China, India, and Taiwan. Country-level regulatory shifts or geopolitical tension in the region can move both funds materially and similarly.

Fee drag at scale: While IEMG's 0.09% expense ratio is negligible on an annual basis, EEM's 0.70% ratio will reduce returns by approximately 61 basis points per year versus IEMG over a multi-decade horizon, assuming equal underlying performance.

Bottom line

If you prioritize cost efficiency and accept broader market-cap inclusion, IEMG's 0.09% expense ratio and higher yield offer a lean entry to emerging-market equity exposure. If you prefer the narrower, older-established MSCI index despite the higher fee, EEM remains a valid alternative, though the cost difference is substantial over long holding periods. Past performance does not guarantee future results.

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

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