# How iShares Core MSCI Emerging Markets ETF (IEMG) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/iemg
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on IEMG alone. It places IEMG (iShares Core MSCI Emerging Markets ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where IEMG stands in the market, and of the alternatives worth a closer look.

Period covered: IEMG's full trading record, from October 2012 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** Over the past 6 months, IEMG rose 0.6% against 9.1% for the S&P 500 and 11.2% for the Nasdaq 100. Not every peer went the same way. Over the past 6 months, EMXC (iShares MSCI Emerging Markets ex China ETF) rose 5.6% and DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) fell 1.1%.
- **Fund or market?:** IEMG rose 0.2% over the past 3 months, in line with the emerging markets equity ETF VWO (Vanguard FTSE Emerging Markets ETF), which rose 0.7%. The S&P 500 rose 3.9%.
- **Long term:** IEMG turned $10,000 into $22,200 over the past decade, against $42,100 in the S&P 500.
- **In a crash:** In the 2022 bear market, IEMG fell harder than most of its similar funds, including VWO (Vanguard FTSE Emerging Markets ETF), AVEM and EMXC.
- **Diversification:** Against the S&P 500, IEMG has a correlation of 0.67 over 5 years, less closely than 61% of ETFs with at least $100 million in assets. Next to an index fund it is some diversification, but not a hedge. Over 10 years IEMG took more of the market's losses than of its gains: 71% of the S&P 500's gains in rising months and 83% of its losses in falling ones, with a beta of 0.77.
- **Better options**
  - **Popular alternatives:** VEA (Vanguard FTSE Developed Markets ETF), FNDE (Schwab Fundamental Emerging Markets Large Company Index ETF) and DEM (WisdomTree Emerging Markets High Dividend Fund) earned more than IEMG with less volatility over the past 5 years. VEA returned 9.3% a year at 16.9% volatility, against 6.8% a year at 19.4%.
  - **Nearby categories and themes:** LVHI (Franklin International Low Volatility High Dividend Index ETF, international equity) and DFIV (Dimensional - International Value ETF, international equity) earned more than IEMG with less volatility over the past 5 years. LVHI returned 17.0% a year at 11.1% volatility, against 6.8% a year at 19.4%.
  - **Versus the S&P 500:** Simply owning the S&P 500 would have done better over the past 5 years: 12.7% a year at 17.1% volatility, against 6.8% at 19.4% for IEMG.

## How much would $10,000 in IEMG have grown?

This chart tracks a hypothetical $10,000 investment in IEMG over the past 13 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of IEMG over the same span and IEMG's popular alternatives, among those that traded for the entire period.

- $10,000 invested in IEMG at the end of September 2013 would have grown to $23,329 by September 2026, less than the $56,474 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of IEMG, and DBEF finished highest, at $35,614.

## IEMG at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- IEMG's deepest decline since it began trading in 2012 was 38.7%, from January 2018 to March 2020. It took eight months from the low to climb back to its old high.
- Over 13 full calendar years, IEMG's best was 2017, when it returned 37.4%, and its worst was 2022, when it lost 20.0%. It lost money in six of those years.
- IEMG is 10.0% below its all-time high.

- Type: ETF, International (Asset Management - Global)
- Trading since: October 24, 2012
- Assets: $151B
- Expense ratio: 0.09%
- Volatility (5 years): 19.4%; Sharpe ratio: 0.44
- Worst decline ever: −38.7%, from January 26, 2018 to March 23, 2020; back at its high by November 16, 2020

| Period | IEMG total return |
| --- | --- |
| 1 month | −7.6% |
| 3 months | +0.2% |
| 6 months | +0.6% |
| year to date | +13.0% |
| 1 year | +17.0% |
| 3 years | +83.4% |
| 5 years | +39.0% |
| 10 years | +122% |

## IEMG against the whole market

Where IEMG ranks among every stock and fund, and what across the market has done better.

### How does IEMG rank among all ETFs?

This section ranks IEMG on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- IEMG's 1-year return ranks in the top 25% of the 2,485 ETFs with at least $100 million in assets with 1 year of history.

| Measure | IEMG | Rank |
| --- | --- | --- |
| 1-year return | +17.0% | 621 of 2,485 (top 25%) |
| 3-year return | +83.4% | 502 of 1,949 (top 26%) |
| 5-year return | +39.0% | 871 of 1,560 (top 56%) |
| 10-year return | +122% | 583 of 958 (top 61%) |
| Volatility, 5 years | 19.4% | 1,075 of 1,560 (top 69%) |
| Sharpe ratio, 5 years | 0.44 | 1,020 of 1,560 (top 66%) |
| Worst decline, past 10 years | −38.7% | 487 of 951 (top 52%) |

### What has beaten IEMG on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- Nine stocks and 305 ETFs worth at least $500 million sit in the green region: each earned more than IEMG over the past 5 years with smaller price swings. That is 9% of the 3,633 screened.
- Among those with at least half IEMG's swings, LVHI has the best return for its risk: 17.0% a year at 11.1% volatility, 43% less than IEMG's 19.4%, and a Sharpe ratio (return above cash per unit of volatility) of 1.48 against 0.44 for IEMG. SDCI earned the most, 20.6% a year, while still swinging less than IEMG (18.4% against 19.4%).
- Among IEMG's popular alternatives, DEM, FNDE and PXH are in the region. DEM earned 9.6% a year against 6.8% a year for IEMG, at 15.5% volatility, 20% less than IEMG's 19.4%.

### Is there a better investment than IEMG?

The table below lists investments that beat IEMG over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among IEMG's popular alternatives, VEA, FNDE and DEM earned more than IEMG with less volatility over the past 5 years. VEA returned 9.3% a year at 16.9% volatility, against 6.8% a year at 19.4%.
- Looking beyond its popular alternatives, LVHI (international equity) and DFIV (international equity) earned more than IEMG with less volatility over the past 5 years. LVHI returned 17.0% a year at 11.1% volatility, against 6.8% a year at 19.4%.
- Simply owning the S&P 500 would have done better over the past 5 years: 12.7% a year at 17.1% volatility, against 6.8% at 19.4% for IEMG.

The 15 strongest of 314 investments that beat IEMG over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with IEMG | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| IEMG: iShares Core MSCI Emerging Markets ETF (this page) |  | +6.8% | 19.4% | 0.44 | −38.7% | +122% |  |  |
| [BRK-B](https://easycompare.io/research/brk-b): Berkshire Hathaway Inc. | Insurance | +13.4% | 17.1% | 0.82 | −29.6% | +274% | 0.19 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [SPY](https://easycompare.io/research/spy): State Street SPDR S&P 500 ETF | US Large-Cap Equity | +12.7% | 17.1% | 0.79 | −33.7% | +321% | 0.67 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [JNJ](https://easycompare.io/research/jnj): Johnson & Johnson | Pharmaceuticals | +12.7% | 17.9% | 0.76 | −27.4% | +196% | 0.17 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| PTLC: Pacer Trendpilot US Large Cap ETF | Broad Market | +9.5% | 11.8% | 0.83 | −26.6% | +188% | 0.52 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | International Equity | +17.0% | 11.1% | 1.48 | −32.4% | +194% | 0.56 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VIG](https://easycompare.io/research/vig): Vanguard Dividend Appreciation ETF | US Dividend Equity | +10.4% | 14.1% | 0.78 | −31.7% | +258% | 0.62 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [SCHD](https://easycompare.io/research/schd): Schwab U.S. Dividend Equity ETF | US Dividend Equity | +9.7% | 14.3% | 0.72 | −33.4% | +252% | 0.54 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [XLV](https://easycompare.io/research/xlv): State Street Health Care Select Sector SPDR ETF | Health Care Equity | +8.4% | 15.3% | 0.60 | −28.4% | +202% | 0.35 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| ACWI: iShares MSCI ACWI ETF | Global Equity | +10.6% | 16.2% | 0.70 | −33.5% | +227% | 0.80 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| AVLV: Avantis U.S. Large Cap Value ETF | US Large-Cap Value | +14.0% | 16.9% | 0.86 | −19.5% | — | 0.62 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [RY](https://easycompare.io/research/ry): Royal Bank of Canada | Banks | +17.3% | 18.2% | 0.97 | −40.0% | +352% | 0.55 | Higher return, lower volatility; Higher return in most periods |
| MOAT: VanEck Morningstar Wide Moat ETF | US Large-Cap Equity | +9.1% | 18.4% | 0.57 | −33.3% | +276% | 0.69 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| QYLD: Global X - Nasdaq 100 Covered Call ETF | Equity Income | +8.4% | 15.0% | 0.62 | −24.7% | +156% | 0.56 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| DFIV: Dimensional - International Value ETF | International Equity | +14.8% | 16.4% | 0.93 | −25.4% | — | 0.70 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| USMC: Principal U.S. Mega-Cap ETF | Broad Market | +14.1% | 16.4% | 0.89 | −30.0% | — | 0.63 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |

## IEMG against its popular alternatives

The investments people most often weigh against IEMG, compared period by period and year by year.

### How do IEMG's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- 11 of the 23 popular alternatives, led by FNDE, PXH and DEM, were both more rewarding and calmer than IEMG over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, IEMG returned 6.8% a year, less than the S&P 500's 12.7%, with higher volatility (19.4% against 17.1%).

### Has IEMG consistently beaten its popular alternatives?

This section compares IEMG with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Eight of the 24 popular alternatives, led by FNDE, PXH and XCEM, outperformed IEMG in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- FNDE, PXH and XCEM outperformed IEMG in every long-term period and in all but one short-term period, the most consistent record in the group.
- DEM, VEA and VXUS earned more for the risk they took than IEMG (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of IEMG | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| IEMG: iShares Core MSCI Emerging Markets ETF (this page) | +17.0% | +83.4% | +39.0% | +122% |  |  | 0.44 |
| FNDE: Schwab Fundamental Emerging Markets Large Company Index ETF | +20.7% | +90.6% | +59.9% | +151% | 5/5 short-term, 3/3 long-term | all-weather | 0.64 |
| PXH: Invesco RAFI Emerging Markets ETF | +18.4% | +91.4% | +59.7% | +130% | 5/5 short-term, 3/3 long-term | all-weather | 0.62 |
| XCEM: Columbia EM Core ex-China ETF | +31.9% | +96.0% | +64.9% | +165% | 4/5 short-term, 3/3 long-term | all-weather | 0.61 |
| EMGF: iShares Emerging Markets Equity Factor ETF | +19.6% | +92.4% | +54.3% | +140% | 3/5 short-term, 3/3 long-term | consistent | 0.56 |
| DEM: WisdomTree Emerging Markets High Dividend Fund | +23.0% | +69.9% | +58.2% | +133% | 5/5 short-term, 2/3 long-term | consistent | 0.67 |
| AVEM: Avantis Emerging Markets Equity ETF | +19.7% | +91.0% | +56.1% | — | 5/5 short-term, 2/3 long-term | consistent | 0.56 |
| EMXC: iShares MSCI Emerging Markets ex China ETF | +33.9% | +106% | +69.5% | — | 4/5 short-term, 2/3 long-term | consistent | 0.64 |
| [VEA](https://easycompare.io/research/vea): Vanguard FTSE Developed Markets ETF | +17.0% | +81.0% | +55.9% | +153% | 3/5 short-term, 2/3 long-term | consistent | 0.61 |
| [VXUS](https://easycompare.io/research/vxus): Vanguard Total International Stock ETF | +14.6% | +77.2% | +48.6% | +140% | 2/5 short-term, 2/3 long-term |  | 0.57 |
| FEM: First Trust Emerging Markets AlphaDEX Fund | +25.1% | +79.3% | +46.7% | +121% | 4/5 short-term, 1/3 long-term |  | 0.51 |
| TLTE: Northern Trust Morningstar Emerging Markets Factor Tilt ETF | +17.7% | +75.7% | +40.4% | +107% | 4/5 short-term, 1/3 long-term |  | 0.47 |
| DFAE: Dimensional - Emerging Core Equity Market ETF | +18.1% | +83.5% | +49.3% | — | 4/5 short-term, 1/3 long-term |  | 0.52 |
| DGS: WisdomTree Emerging Markets SmallCap Dividend Fund | +13.6% | +57.4% | +42.7% | +119% | 2/5 short-term, 1/3 long-term |  | 0.54 |
| GEM: Goldman Sachs ActiveBeta Emerging Markets Equity ETF | +18.3% | +83.9% | +42.1% | +113% | 2/5 short-term, 1/3 long-term |  | 0.47 |
| DFEM: Dimensional - Emerging Markets Core Equity 2 ETF | +18.3% | +80.9% | — | — | 4/5 short-term, 0/3 long-term |  | — |
| EEMV: iShares MSCI Emerging Markets Min Vol Factor ETF | +14.2% | +54.1% | +29.2% | +75.5% | 3/5 short-term, 0/3 long-term |  | 0.47 |
| SPEM: State Street SPDR Portfolio Emerging Markets ETF | +9.9% | +70.4% | +33.1% | +114% | 2/5 short-term, 0/3 long-term |  | 0.42 |
| EEMS: iShares MSCI Emerging Markets Small-Cap ETF | +10.6% | +52.9% | +34.7% | +114% | 2/5 short-term, 0/3 long-term |  | 0.44 |
| SCHE: Schwab Emerging Markets Equity ETF | +8.8% | +69.8% | +29.9% | +104% | 2/5 short-term, 0/3 long-term |  | 0.38 |
| [VWO](https://easycompare.io/research/vwo): Vanguard FTSE Emerging Markets ETF | +8.3% | +67.2% | +29.1% | +102% | 2/5 short-term, 0/3 long-term |  | 0.38 |
| JPEM: JPMorgan Diversified Return Emerging Markets Equity ETF | +13.1% | +54.9% | +37.9% | +92.5% | 2/5 short-term, 0/3 long-term |  | 0.55 |
| EEM: iShares MSCI Emerging Markets ETF | +17.6% | +84.9% | +35.7% | +110% | 1/5 short-term, 0/3 long-term |  | 0.41 |
| INDA: iShares MSCI India ETF | −12.7% | +9.4% | +2.2% | +80.6% | 1/5 short-term, 0/3 long-term |  | 0.11 |
| MCHI: iShares MSCI China ETF | −19.0% | +34.4% | −21.4% | +26.8% | 1/5 short-term, 0/3 long-term |  | -0.01 |

### How did IEMG do year by year?

This table shows each investment's total return in every full calendar year since 2013, along with where IEMG ranked among its popular alternatives each year.

- IEMG finished ahead of the S&P 500 in two of its 13 full calendar years.
- Among its popular alternatives, AVEM came out ahead of IEMG most often, in five of the six years both traded.
- Ranked against its popular alternatives each year, IEMG finished in the top quarter in three of 13 years and in the bottom quarter in two. In 2025, it ranked 7 of 25.

| Year | IEMG | SPY |
| --- | --- | --- |
| 2025 | +32.5% | +17.7% |
| 2024 | +6.5% | +24.9% |
| 2023 | +11.5% | +26.2% |
| 2022 | −20.0% | −18.2% |
| 2021 | −0.6% | +28.7% |
| 2020 | +17.8% | +18.3% |
| 2019 | +17.8% | +31.2% |
| 2018 | −14.9% | −4.6% |
| 2017 | +37.4% | +21.7% |
| 2016 | +10.3% | +12.0% |

## Risk and diversification

How IEMG has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were IEMG's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all five of IEMG's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: IEMG fell 37.1% from February 2021 to October 2022, while the S&P 500 slipped only 1.0%.
- The slowest recovery came after IEMG fell 37.1% from February 2021 to October 2022; it did not regain that peak until July 2025, three years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −38.7% | January 26, 2018 | March 23, 2020 | November 16, 2020 | −18.8% | late-2018 sell-off |
| −37.1% | February 16, 2021 | October 24, 2022 | July 17, 2025 | −1.0% | 2022 bear market |
| −34.4% | September 5, 2014 | January 20, 2016 | July 12, 2017 | −4.8% | 2015 China and oil sell-off |
| −17.5% | January 2, 2013 | June 24, 2013 | June 10, 2014 | +8.6% |  |
| −13.8% | June 22, 2026 | July 29, 2026 | not yet | −2.0% |  |

### How did IEMG do in stock market crashes?

This section measures how far IEMG, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- Among its popular alternatives, EEMV held up best, falling less than IEMG in all six crashes they both traded through.
- IEMG began trading after the 2008 financial crisis, but six of its popular alternatives lived through it. The mildest fall among them was DEM's 51.8%, against 55.2% for the S&P 500.
- IEMG fell less than the S&P 500 in three of the six crashes it has traded through. The clearest case was the late-2018 sell-off, when IEMG fell 12.0% and the S&P 500 fell 19.3%.

| Crash | Dates | IEMG fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | not trading | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | not trading | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | not trading | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −21.6% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −6.7% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −12.0% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −31.7% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −30.4% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −2.6% | −3.4% |

### How closely does IEMG move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- DEM took just 74% of the S&P 500's losses, against 83% for IEMG, while still keeping 67% of its gains.
- Over the past 10 years, IEMG captured 71% of the S&P 500's gains in rising months and 83% of its losses in falling months, with a beta of 0.77. Its share of the market's losses was larger than its share of the gains.
- Five of the 20 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than IEMG's 0.86, led by XCEM, FNDE and EMGF.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| IEMG: iShares Core MSCI Emerging Markets ETF (this page) | 71.0% | 83.0% | 0.77 |
| FNDE: Schwab Fundamental Emerging Markets Large Company Index ETF | 72.0% | 79.0% | 0.71 |
| PXH: Invesco RAFI Emerging Markets ETF | 69.0% | 77.0% | 0.70 |
| XCEM: Columbia EM Core ex-China ETF | 81.0% | 88.0% | 0.90 |
| EMGF: iShares Emerging Markets Equity Factor ETF | 71.0% | 77.0% | 0.76 |
| DEM: WisdomTree Emerging Markets High Dividend Fund | 67.0% | 74.0% | 0.69 |
| [VEA](https://easycompare.io/research/vea): Vanguard FTSE Developed Markets ETF | 81.0% | 96.0% | 0.86 |
| [VXUS](https://easycompare.io/research/vxus): Vanguard Total International Stock ETF | 76.0% | 91.0% | 0.82 |
| FEM: First Trust Emerging Markets AlphaDEX Fund | 72.0% | 88.0% | 0.81 |
| TLTE: Northern Trust Morningstar Emerging Markets Factor Tilt ETF | 69.0% | 85.0% | 0.79 |
| DGS: WisdomTree Emerging Markets SmallCap Dividend Fund | 70.0% | 84.0% | 0.78 |
| GEM: Goldman Sachs ActiveBeta Emerging Markets Equity ETF | 68.0% | 80.0% | 0.74 |
| EEMV: iShares MSCI Emerging Markets Min Vol Factor ETF | 50.0% | 61.0% | 0.55 |
| SPEM: State Street SPDR Portfolio Emerging Markets ETF | 65.0% | 76.0% | 0.69 |
| EEMS: iShares MSCI Emerging Markets Small-Cap ETF | 71.0% | 87.0% | 0.83 |
| SCHE: Schwab Emerging Markets Equity ETF | 63.0% | 76.0% | 0.68 |
| [VWO](https://easycompare.io/research/vwo): Vanguard FTSE Emerging Markets ETF | 63.0% | 75.0% | 0.69 |
| JPEM: JPMorgan Diversified Return Emerging Markets Equity ETF | 60.0% | 75.0% | 0.64 |
| EEM: iShares MSCI Emerging Markets ETF | 70.0% | 84.0% | 0.77 |
| INDA: iShares MSCI India ETF | 57.0% | 74.0% | 0.62 |
| MCHI: iShares MSCI China ETF | 49.0% | 81.0% | 0.51 |

### What diversifies IEMG?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in IEMG into DBMF would have cut the portfolio's volatility by 22% over the past 5 years and raised its annual return (+8.7% for IEMG alone, +9.5% for the mix).
- MPC made money in five of the six calendar years in which IEMG lost money.
- Among large ETFs, EMLP, HDV and GLD have moved largely independently of IEMG over the past 5 years, with correlations of 0.47 or lower, and each still earned a positive 5-year return.

| Investment | Correlation with IEMG | 5Y return | Volatility | Sharpe | Rose in IEMG's 6 down years |
| --- | --- | --- | --- | --- | --- |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.41 | +101% | 14.5% | 1.04 | 4 of 6 |
| HDV: iShares Core High Dividend ETF | 0.45 | +83.3% | 13.0% | 1.00 | 4 of 6 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.47 | +126% | 18.9% | 0.96 | 0 of 6 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.13 | +177% | 25.5% | 0.93 | 3 of 6 |
| AMLP: Alerian MLP ETF | 0.19 | +111% | 18.9% | 0.89 | 4 of 6 |
| DBMF: iMGP DBi Managed Futures Strategy ETF | -0.21 | +59.7% | 12.4% | 0.82 | 2 of 6 |
| DBA: Invesco DB Agriculture Fund | 0.07 | +66.4% | 13.8% | 0.81 | 3 of 6 |
| IHE: iShares U.S. Pharmaceuticals ETF | 0.33 | +81.2% | 16.8% | 0.80 | 4 of 6 |

## Common questions

### What was IEMG's worst drawdown?

IEMG's deepest decline since it began trading in 2012 was 38.7%, from January 2018 to March 2020. It took eight months from the low to climb back to its old high. Because IEMG launched in October 2012, that record does not include the dot-com bust, the 2008 financial crisis or two other sell-offs.

### What were IEMG's best and worst years?

Over 13 full calendar years, IEMG's best year was 2017, when it returned 37.4%. Its worst was 2022, with a return of -20.0%.

### Is there a better investment than IEMG?

Among IEMG's popular alternatives, VEA, FNDE and DEM earned more than IEMG with less volatility over the past 5 years. VEA returned 9.3% a year at 16.9% volatility, against 6.8% a year at 19.4%. Looking beyond its popular alternatives, LVHI (international equity) and DFIV (international equity) earned more than IEMG with less volatility over the past 5 years. LVHI returned 17.0% a year at 11.1% volatility, against 6.8% a year at 19.4%.

### Is IEMG more volatile than the S&P 500?

Yes. IEMG's volatility over the past 5 years was 19.4%, 1.1 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, IEMG's return lands within 19.4% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is IEMG's Sharpe ratio?

IEMG's Sharpe ratio over the past 5 years was 0.44, against 0.79 for the S&P 500, so IEMG earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is IEMG with the S&P 500?

Over the past 5 years, IEMG's monthly returns had a correlation of 0.67 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against IEMG instead: the lower it is, the more that option would diversify a IEMG holding.

### What are the best alternatives to IEMG?

Of the 24 popular alternatives we compared, eight outperformed IEMG in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: FNDE, PXH and XCEM.

### Did IEMG outperform the S&P 500?

IEMG finished ahead of the S&P 500 (SPY) in two of 13 full calendar years. In 2025, it returned +32.5%, against +17.7% for the index.

### How did IEMG do in stock market crashes?

IEMG fell less than the S&P 500 (SPY) in three of the six major crashes it has traded through, and further in two. The clearest case was the late-2018 sell-off, when IEMG fell 12.0% and the S&P 500 fell 19.3%.

### What diversifies IEMG?

These had a low correlation with IEMG over the past 5 years and still earned a positive 5-year return: among large ETFs, EMLP (correlation 0.41), HDV (correlation 0.45) and GLD (correlation 0.47); among large stocks, CAH (correlation 0.18), CLS (correlation 0.34) and FIX (correlation 0.32). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/iemg
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against IEMG live: https://betterthanspy.com/?b=IEMG&utm_source=easycompare&utm_medium=research