Average Daily Volume
29.36M
Fund Overview
The iShares MSCI Emerging Markets ETF (EEM) is one of the largest and most widely traded ETFs providing exposure to emerging market equities. The fund seeks to track the MSCI Emerging Markets Index, which includes large- and mid-cap stocks across 24 emerging market countries. EEM offers investors diversified access to dynamic economies such as China, India, Brazil, and South Africa, among others. The ETF is known for its liquidity and has been a core holding for investors seeking growth opportunities outside developed markets. However, it has faced increasing competition from lower-cost alternatives in recent years.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 1.72 %
- Currency Hedged
-
No
- Portfolio Turnover
-
13 %
- Dividend Date
-
Why Invest in the EEM ETF?
Potential Benefits
- Provides broad exposure to emerging market equities across multiple countries and sectors.
- Liquidity is high, making it easy to enter and exit positions.
- Historically, emerging markets have offered higher growth potential compared to developed markets.
- Diversification benefits due to low correlation with developed market equities.
- Transparent structure tracking a well-established index (MSCI Emerging Markets Index).
Potential Risks
- Higher volatility compared to developed market ETFs due to political and economic instability in some regions.
- Currency risk, as fluctuations in local currencies can impact returns for U.S. investors.
- Higher expense ratio (0.68%) compared to newer, competing funds like IEMG (0.11%).
- Concentration risk in certain countries (e.g., China and Taiwan make up a significant portion of the index).
- Regulatory and liquidity risks in less-developed markets can affect performance.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+8.0%
|
+5.9%
|
-9.3%
|
+12.7%
|
+7.2%
|
+0.2%
|
-6.3%
|
+4.6%
|
-0.3%
|
+1.3%
|
-
|
-
|
| 2025 |
+2.2%
|
+1.1%
|
+1.1%
|
+0.1%
|
+4.0%
|
+7.0%
|
+0.7%
|
+2.7%
|
+7.1%
|
+3.6%
|
-1.8%
|
+2.2%
|
| 2024 |
-4.5%
|
+4.2%
|
+2.7%
|
-0.2%
|
+2.0%
|
+2.6%
|
+0.8%
|
+1.0%
|
+5.7%
|
-3.1%
|
-2.7%
|
-1.7%
|
| 2023 |
+9.1%
|
-7.6%
|
+3.2%
|
-0.8%
|
-2.4%
|
+4.4%
|
+6.0%
|
-6.6%
|
-3.1%
|
-3.3%
|
+7.8%
|
+3.6%
|
| 2022 |
0.0%
|
-4.3%
|
-3.4%
|
-6.1%
|
+0.6%
|
-5.1%
|
-0.3%
|
-1.3%
|
-11.5%
|
-2.0%
|
+15.6%
|
-2.6%
|
| 2021 |
+3.2%
|
+0.8%
|
-0.7%
|
+1.2%
|
+1.6%
|
+0.9%
|
-6.4%
|
+1.6%
|
-3.9%
|
+1.1%
|
-4.1%
|
+1.5%
|
| 2020 |
-6.2%
|
-3.8%
|
-15.8%
|
+7.4%
|
+3.0%
|
+6.6%
|
+8.3%
|
+2.9%
|
-1.0%
|
+1.4%
|
+9.0%
|
+7.1%
|
| 2019 |
+10.3%
|
-1.5%
|
+1.1%
|
+2.4%
|
-7.3%
|
+6.2%
|
-2.7%
|
-3.8%
|
+1.7%
|
+4.2%
|
-0.1%
|
+7.7%
|
| 2018 |
+8.3%
|
-5.9%
|
+0.5%
|
-2.8%
|
-2.6%
|
-4.5%
|
+3.5%
|
-3.8%
|
-0.6%
|
-8.8%
|
+4.9%
|
-3.5%
|
| 2017 |
+6.7%
|
+1.7%
|
+3.7%
|
+1.7%
|
+2.8%
|
+0.9%
|
+5.8%
|
+2.4%
|
0.0%
|
+3.3%
|
-0.4%
|
+3.8%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
PDD
|
PDD HOLDINGS INC ADR |
0.9 % |
|
YUMC
|
YUM CHINA HOLDINGS INC |
0.2 % |
|
AU
|
ANGLOGOLD ASHANTI PLC |
0.2 % |
|
BEKE
|
KE HOLDINGS INC ADR |
0.2 % |
|
BAP
|
CREDICORP LTD |
0.2 % |
|
TME
|
TENCENT MUSIC ENTERTAINMENT GROUP ADR |
0.1 % |
|
SCCO
|
SOUTHERN COPPER CORP |
0.1 % |
|
HTHT
|
H WORLD GROUP LTD ADR |
0.1 % |
|
TAL
|
TAL EDUCATION GROUP ADR |
0.1 % |
|
QFIN
|
QIFU TECHNOLOGY INC ADR |
0.1 % |
Top 10 holdings shown, out of 1 total holdings.
Related ETFs: EEM vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
EEM seeks to track the MSCI Emerging Markets Index, a market-cap-weighted benchmark that includes large- and mid-cap stocks from 24 emerging market countries. The index methodology emphasizes liquidity and investability, ensuring that included securities are accessible to foreign investors. The fund primarily holds common stocks and is rebalanced quarterly to align with index changes. Unlike some newer ETFs, EEM does not use sampling or optimization techniques, instead aiming for full replication of the index.
Frequently Asked Questions
What countries are included in EEM?
EEM includes stocks from 24 emerging markets, with significant weightings in China, Taiwan, India, Brazil, and South Africa, among others.
How does EEM differ from IEMG?
EEM tracks the MSCI Emerging Markets Index and has a higher expense ratio (0.68%), while IEMG tracks a broader version of the index (including small-caps) and charges a lower fee (0.11%).
Is EEM a good long-term investment?
EEM can be a core holding for long-term investors seeking emerging markets growth, but its higher costs and volatility should be considered relative to alternatives.
Does EEM pay dividends?
Yes, EEM distributes dividends quarterly, reflecting the dividend payments from its underlying holdings.
Industry Overview
The iShares MSCI Emerging Markets ETF (EEM) provides exposure to the fast-growing but volatile emerging markets equity space. Emerging markets are characterized by rapid economic expansion, expanding middle-class populations, and increasing consumer demand. However, they also come with higher risks, including political instability, currency fluctuations, and regulatory uncertainties. EEM remains a popular choice for investors looking to capitalize on long-term growth trends in these regions while managing risk through diversification.
Alternative Comparison
Compared to VWO (Vanguard FTSE Emerging Markets ETF), EEM has a higher expense ratio (0.68% vs. 0.08%) but offers greater liquidity and a slightly different country exposure due to tracking the MSCI index instead of the FTSE index. IEMG (iShares Core MSCI Emerging Markets ETF) is a lower-cost alternative (0.11%) from the same issuer, tracking a similar but broader index that includes small-cap stocks. Investors prioritizing cost efficiency may prefer IEMG or VWO, while those needing high liquidity might still favor EEM for large trades.
Issuer Overview
EEM is issued by iShares, a subsidiary of BlackRock, the world's largest asset manager. iShares is a leader in the ETF space, known for its broad range of index-tracking and actively managed funds. BlackRock's scale and expertise in global markets provide strong support for EEM's operations and liquidity.
Conclusion
EEM remains a cornerstone ETF for emerging markets exposure, offering liquidity and broad diversification. While its expense ratio is higher than newer competitors, its established track record and deep market penetration make it a viable choice for certain investors. Those focused on cost-efficiency may explore alternatives like IEMG or VWO, but EEM's role in the ETF landscape is still significant.
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