IEMG vs SPY
IEMG vs SPY
iShares Core MSCI Emerging Markets ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
IEMG has a lower expense ratio. IEMG delivered stronger 1-year returns. IEMG offers more diversification with 1154 holdings.
Side-by-Side Comparison
| Metric | IEMG | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.09% | |
| AUM | $149.8B | $789.1B | |
| Dividend Yield | 2.17% | 1.01% | |
| Holdings | 2,869 | 505 | |
| YTD Return | +16.86% | +13.79% | |
| 1Y Return | +33.41% | +23.66% | |
| 3Y Return (annualized) | +20.05% | +21.40% | |
| 5Y Return (annualized) | +7.50% | +13.37% | |
| Volatility (annualized) | 16.4% | 15.3% | |
| Max Drawdown | -42.2% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Oct 18, 2012 | Jan 22, 1993 |
IEMG vs SPY Performance
iShares Core MSCI Emerging Markets ETF (IEMG) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year IEMG returned +33.41% while SPY returned +23.66%. Year to date, IEMG is up 16.86% versus a gain of 13.79% for SPY.
Over three years, IEMG compounded at +20.05% per year against +21.40% for SPY; over five years the annualized figures are +7.50% and +13.37% respectively. Across the full 14-year window we track, SPY has the edge at +8.85% annualized vs +4.66%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IEMG has been the more volatile fund, with annualized monthly volatility of 16.4% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -42.2% for IEMG and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IEMG charges 0.09% per year while SPY charges 0.09%. On a $10,000 position that is $9 vs $9 annually, a gap of $0 per year that compounds over a long holding period. On income, IEMG currently yields 2.17% against 1.01% for SPY.
Holdings Overlap
IEMG and SPY share 0 holdings out of 1657 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IEMG or SPY?
IEMG has an expense ratio of 0.09% while SPY charges 0.09%. IEMG is the cheaper option. On a $10,000 investment, that is $0 per year of difference.
Which performed better, IEMG or SPY?
Over the past year IEMG returned +33.41% vs +23.66% for SPY, so IEMG leads on 1-year performance. Over the longest common window we track (14 years), IEMG annualized +4.66% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, IEMG or SPY?
IEMG has been the more volatile fund at 16.4% annualized versus 15.3% for SPY. Worst drawdown: IEMG -42.2% vs SPY -56.5%.
Should I hold both IEMG and SPY?
IEMG and SPY have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IEMG and SPY?
IEMG and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1657 unique securities.
Which pays a higher dividend, IEMG or SPY?
IEMG yields 2.17% while SPY yields 1.01%, so IEMG currently pays the higher dividend yield.
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