IEMG charges 0.09% versus EEM’s 0.69%, costing holders $600 annually per $100,000 invested in nearly identical exposure.
BlackRock’s iShares Core MSCI Emerging Markets ETF (IEMG) has amassed $149 billion in assets, nearly five times EEM’s $28 billion, by undercutting its fee by 87%. The 0.09% expense ratio saves investors $600 per $100,000 annually compared to EEM’s 0.69%.
Both funds track the MSCI Emerging Markets Index, but IEMG’s lower cost has driven 12 percentage points of outperformance over a decade. EEM’s deeper options market remains its sole advantage, though institutional allocators and target-date funds have largely shifted to IEMG.
EEM, launched in 2003, remains heavily traded due to its liquidity and tight spreads, but its legacy fee structure has become a liability for long-term holders.