The iShares Core MSCI Emerging Markets ETF (IEMG) and the iShares MSCI Emerging Markets ETF (EEM) are both vying for investor attention in the emerging markets space, but they differ significantly in cost structure and portfolio composition. IEMG, with an expense ratio of just 0.09%, offers broader exposure by including small-cap stocks and a total of 2,725 holdings, while EEM focuses on large- and mid-cap stocks with 1,223 holdings and a higher expense ratio of 0.72%.
This cost advantage positions IEMG as a more appealing option for cost-conscious investors, especially given its higher dividend yield of 2.6% compared to EEM’s 2.1%. However, EEM has recently outperformed with a one-year return of 26.2%, slightly ahead of IEMG’s 25.6%.
For investors, the choice between these ETFs hinges on their priorities: IEMG offers lower fees and broader market coverage, while EEM may attract those seeking higher recent returns.
Source: fool.com