How Does IEMG's Emerging Markets Potential Compare to SPGM's Global Exposure?

Core Insights - The State Street SPDR Portfolio MSCI Global Stock Market ETF (SPGM) and iShares Core MSCI Emerging Markets ETF (IEMG) provide diversified stock market exposure but differ in their focus, with SPGM covering the global equity landscape and IEMG concentrating on emerging markets [1] Cost & Size Comparison - Both SPGM and IEMG have an expense ratio of 0.09% - As of February 7, 2026, SPGM has a one-year return of 21.47%, while IEMG has a significantly higher return of 37.83% - IEMG offers a higher dividend yield of 2.51% compared to SPGM's 1.82% - SPGM has an AUM of $1.45 billion, whereas IEMG has a much larger AUM of $137.65 billion [2][3] Performance & Risk Comparison - Over five years, SPGM experienced a maximum drawdown of -25.92%, while IEMG had a larger drawdown of -37.16% - An investment of $1,000 in SPGM would grow to $1,539 over five years, compared to $1,073 for IEMG [4] Portfolio Composition - IEMG holds 2,707 emerging-market stocks, primarily focused on the tech sector (23%), followed by financials (16%) and industrials (12%) - Major holdings in IEMG include Taiwan Semiconductor Manufacturing, Samsung Electronics, and Tencent Holdings, indicating strong exposure to Asian tech [5] - SPGM includes 2,969 holdings with a heavier allocation to technology (26%), featuring top positions in Nvidia, Apple, and Microsoft, reflecting a stronger U.S. tech focus [6] Investor Considerations - Both ETFs are viable for gaining international stock exposure, but IEMG's focus on emerging markets may lead to higher volatility due to the nature of the companies involved [7] - IEMG excludes North American companies, which may result in different price patterns compared to U.S. companies, necessitating awareness of global geopolitical and economic developments for American investors [8]