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IEM

$82.28-0.28%Emerging Markets29/100
Fund Page ↗

iShares MSCI Emerging Markets ETF · BlackRock

Data as at 29 March 2026

TL;DR

Tracks large and mid-cap stocks across 24 emerging market countries. Uses the MSCI index which classifies South Korea as emerging — so Samsung, SK Hynix, and other Korean companies are included, unlike VGE.

MER (Annual Fee)
0.67%
#4 lowest in Emerging Markets
1Y Return
+20.9%
3Y Return (p.a.)
+14.1%
Dividend Yield
1.50%
Trailing 12 months
AUM
$1,601.2M
Assets under management
Avg Daily Turnover
$2.3M
Avg shares × unit price
Unit Price
$82.28
As at 29 March 2026
Provider
BlackRock
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Strategy

Follows the MSCI Emerging Markets Index using BlackRock's iShares structure. South Korea's inclusion adds roughly 12-15% exposure to Korean companies versus VGE's zero Korea weighting.

Top Holdings

TSMC
9.1%
Samsung
4.5%
Tencent
4.0%
Alibaba
2.4%
Reliance Industries
1.7%
SK Hynix
1.5%
HDFC Bank
1.1%
Infosys
0.9%
Key Fact

The MSCI versus FTSE classification of South Korea is the primary difference between IEM and VGE. MSCI treats Korea as emerging; FTSE treats it as developed. Samsung's 4.5% weight in IEM versus zero in VGE is the most visible consequence of this methodological difference.

Suited for

Investors who specifically want South Korean exposure within their emerging market allocation, or who prefer the MSCI benchmark over FTSE.

Risks

Higher MER at 0.67% versus VGE's 0.48%. Same broad emerging market risks apply. The inclusion of South Korea adds semiconductor cycle exposure to the portfolio.

ETFCheck Score29/100
Fees (40%)0
Fund Size (25%)56
Liquidity (20%)41
Yield (15%)44
How scores are calculated →
Other Emerging Markets ETFs
VGE
0.48% MER
44
WEMG
0.24% MER
41
ILF
0.48% MER
32
EMMG
0.69% MER
3View all Emerging Markets ETFs →

Frequently Asked Questions - IEM

How has IEM performed through major market crises since its ASX listing?+
IEM is the oldest emerging markets ETF on the ASX, listed in 2007, meaning it has survived the GFC, the 2013 Taper Tantrum, and COVID-19. During each downturn, IEM experienced drawdowns of 50%+ (GFC) but recovered over subsequent years. This long track record gives Australian investors verifiable historical data for stress-testing EM allocations within SMSFs and diversified portfolios, something newer rivals like WEMG cannot yet offer.
Is IEM's 0.67% MER too expensive compared to WEMG for emerging markets exposure?+
IEM charges 0.67% compared to WEMG's 0.24%, which adds up significantly over long holding periods. However, IEM tracks the MSCI Emerging Markets Index with substantially higher liquidity and tighter bid-ask spreads on the ASX, reducing hidden trading costs. For SMSF trustees making regular contributions or rebalancing frequently, IEM's superior on-market liquidity can partially offset the higher MER through better execution pricing.
What is IEM's country concentration risk and does it include China A-shares?+
IEM tracks the MSCI Emerging Markets Index, which allocates roughly 25-30% to China including both H-shares and A-shares via Stock Connect. India, Taiwan, and South Korea typically represent 12-18% each. Australian investors should note this heavy Asian tilt means IEM provides limited exposure to Latin America or Africa, so those seeking geographic balance may need to pair IEM with a fund like ILF for broader diversification.
How are IEM distributions taxed for Australian investors and SMSF holders?+
IEM distributions include foreign-sourced income and may contain foreign income tax offsets (FITOs), which Australian investors can claim to avoid double taxation. Unlike Australian equity ETFs, IEM generates no franking credits since it holds no ASX-listed shares. SMSF trustees should ensure their fund's trust deed permits international investments, and the 2.05% yield will be assessed as ordinary income at the member's marginal rate or the fund's concessional 15% rate.