iShares MSCI Emerging Markets ETF

EEM

Market cap $20.5B

iShares Core MSCI Emerging Markets ETF is rated a buy, while iShares MSCI Emerging Markets ETF is rated hold. IEMG offers broader diversification, a lower expense ratio (0.09% vs. 0.72%), and better risk-adjusted returns compared to EEM. Despite similar sector and geographic allocations, IEMG includes more holdings and small caps, resulting in higher income and lower volatility than EEM.

Emerging markets are surging on a weak dollar, Fed cuts & AI-fueled Chinese tech rally. ETFs like EEM & CQQQ are outpacing the S&P 500 in 2025.

Afsaneh Beschloss, RockCreek CEO, joins 'Closing Bell Overtime' to talk how AI is powering gains beyond the U.S., why some emerging markets like Korea, China, and Colombia are surprising on the upside after years of weakness, what recent trade data means for Europe, and more.

Kevin Carter, EMQQ founder and CIO, and Dave Nadig, ETF.com president and director of research, join CNBC's Contessa Brewer to discuss the appetite for emerging markets this year and if the opportunity has passed, the SEC potentially allowing asset managers to add ETF share classes to mutual funds and the crypto ETF products that could launch before year-end.

The iShares MSCI Emerging Markets ETF has outperformed the S&P 500 YTD, driven by a weaker dollar and attractive emerging market valuations. The ETF offers broad EM exposure, strong momentum, and a compelling 14.4x P/E with a 9.5% EPS growth rate. Technical indicators are bullish: EEM broke key resistance, the 200-day moving average is rising, and RSI remains strong.

The dollar selloff is helping developing countries' stocks.

When friendships go awry, there is often a rush to find new cliques. That is playing out on the international stage.

When it comes to equities exposure, U.S. large-caps continue to garner the lion's share of capital allocations. However, emerging markets (EM) could finally be in the throes of a comeback.

Financial technology (fintech), broadly speaking, allows the remote delivery of financial services to businesses and individuals through computers or mobile devices. Fintech encompasses everything from smartphone apps to complex blockchain-enabled networks that facilitate financial transactions.

With a falling dollar and no risk premium in the U.S., EMs could gain traction, but EEM might not be the best way to play it. EEM is, in my opinion, not a competitive emerging markets ETF, due to limited representation, high costs, and long-term underperformance. In my opinion, it's a “historical legacy”, still useful today only for short-term trades, thanks to its excellent liquidity.