IEMG vs. SPGM: How These Popular Global ETFs Stack Up for Investors

Core Insights - The iShares Core MSCI Emerging Markets ETF (IEMG) and the State Street SPDR Portfolio MSCI Global Stock Market ETF (SPGM) provide low-cost equity exposure but differ in geographic focus and risk profiles [1][2] Cost & Size Comparison - Both ETFs have an expense ratio of 0.09% - IEMG has a significantly higher one-year return of 38.07% compared to SPGM's 21.83% - IEMG offers a higher dividend yield of 2.75% versus SPGM's 1.89% - IEMG has an asset under management (AUM) of $138.8 billion, while SPGM has $1.3 billion [3] Performance & Risk Comparison - IEMG has a max drawdown of -37.11% over five years, while SPGM's is -25.92% - The growth of $1,000 over five years is $1,100 for IEMG and $1,570 for SPGM [4] Holdings and Sector Exposure - IEMG includes 2,672 holdings, focusing on large-, mid-, and small-cap equities in emerging markets, with a sector mix dominated by technology (27%) and financial services (21%) [5] - SPGM has nearly 3,000 holdings, blending developed and emerging markets, with significant exposure to technology (26%), financial services (17%), and industrials (12%) [6] Investment Implications - IEMG targets high-growth potential in emerging markets but carries higher risk and volatility [7] - SPGM offers a more stable investment option with exposure to both developed and emerging markets, providing greater diversification [8] - IEMG has shown significant short-term performance but has underperformed in five-year total returns, potentially due to volatility or the performance of major tech companies [9] - Investors seeking higher growth may prefer IEMG, while those desiring diversification might opt for SPGM [10]