iShares MSCI Emerging Markets ETF

EEM

Market cap $28.2B

Buzz is building regarding end to the US-Iran war.

As the conflict in Iran continues longer than the timeframe previously outlined by the Trump administration, investors are weighing longer-term impacts to the U.S. economy and markets. Amplify ETFs CEO Christian Magoon and MFS head of ETF capital markets Jamie Harrison join CNBC's Dominic Chu on “ETF Edge” to discuss how traders are handling the volatility.

Jay Pelosky says geopolitical tensions are accelerating a rotation out of U.S. equities and into international markets. He discusses new leadership in emerging markets as AI‑linked names like Nvidia (NVDA) experience stock de-ratings.

While the Iran war poses a risk, portfolio managers say emerging markets can continue their run-up thanks to improving fundamentals

Foreign investors withdrew a staggering $70.3 billion from emerging market assets in March, marking the largest monthly outflow since the market turmoil of March 2020, according to data released by the Institute of International Finance on Wednesday. The data showed that investors pulled funds from both debt and equity portfolios, reflecting a sharp reversal in sentiment.

The iShares MSCI Emerging Markets ETF (NYSEMKT:EEM) charges a higher expense ratio but has delivered a stronger one-year return than the State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC). NZAC offers a climate-focused, ESG-screened global portfolio, while EEM targets only emerging markets with a tech and financials tilt.

EEM's expense ratio is 10 times higher than IEFA, but it has outpaced IEFA over the past year EEM focuses on emerging markets and is heavily tilted toward technology and Asia, while IEFA covers developed markets with a financials and industrials tilt IEFA's yield is higher and its maximum drawdown is smaller, signaling lower risk and more income focus

EEM has delivered a higher 1-year return but comes with a significantly higher expense ratio than SPGM EEM's portfolio is heavily tilted toward technology and emerging Asia, while SPGM spreads exposure more broadly across global developed and emerging markets SPGM has shown milder drawdowns and lower volatility, which may appeal to risk-averse investors

EEM charges a much higher expense ratio than IEMG for nearly identical sector exposure and performance IEMG holds more than twice as many stocks, covering small-caps that EEM omits EEM is highly liquid but its five-year risk-adjusted return trails IEMG's, and its yield is slightly lower

EEM charges a much higher expense ratio than IXUS but delivered a stronger 1-year total return as of March 2026. IXUS holds nearly 4 times as many stocks, offering broader international diversification, while EEM concentrates on emerging markets with a heavy technology tilt.