iShares MSCI Emerging Markets ETF

EEM

Market cap $29B

As U.S. fund outflows hit a 16-year high and volatility spikes, emerging market ETFs offer a path to diversification and growth.

Emerging market ETFs are back in focus. Two of the ten largest U.S.-listed ETF inflow winners year-to-date are broad EM funds.

EEM charges a much higher expense ratio than VXUS and yields less. EEM is concentrated in emerging market tech, with deeper five-year drawdowns and less diversification than VXUS.

Most emerging market ETFs are built around the same assumption: that China's economy and equity markets will drive returns for decades.

There's no stopping the momentum in the ETF market. January 2026 brought a record $166 billion in net inflows, surpassing the last three Januarys combined.

We think emerging market (EM) assets can build on a solid start after a strong 2025. We prefer EM hard currency debt and are selective in EM equities.

Choppy S&P 500 moves, AI-driven tech sell-offs and a softer dollar are pushing investors to look beyond U.S. equities, toward global equity ETFs amid volatility.

EEM charges a much higher expense ratio and sports a lower yield than VXUS EEM has posted a stronger 1-year total return but suffered a deeper five-year drawdown EEM tilts heavily toward technology and emerging Asia, while VXUS holds a broader international mix We're bullish on these 10 stocks ›

BlackRock CIO of Global Fixed Income Rick Rieder talks about the impact of AI on markets says emerging markets are looking very attractive. He speaks on "Bloomberg Open Interest.

The ETF industry has carried its record-breaking momentum from 2025 into the new year, surpassing $100 billion in net flows before the end of January.  By the end of the month, flows into U.S.