What IEMG actually is

IEMG tracks the MSCI Emerging Markets Investable Market Index. Compared with EEM, it also includes small companies, so it holds many more stocks and gives a fuller picture of emerging markets.

What is inside

Thousands of companies in China, India, Taiwan, South Korea, Brazil and other developing markets. The largest holdings overlap heavily with EEM, so the two funds often behave similarly.

Distributions

IEMG pays dividends, typically twice a year, and amounts change with the companies and currencies involved. It is not an income fund, and yield is usually moderate.

What to keep in mind

  • Political and currency risk. Both are higher than in developed markets.
  • Overlap with EEM. Do not hold both expecting diversification.
  • Foreign taxes. Withholding may apply.

Quick take

IEMG is the broader, “core” way to hold emerging markets in one fund. Compare it with EEM if you are choosing between the two.