FZROX vs. IEMG

Last updated Jun 16, 2026

FZROX (Fidelity ZERO Total Market Index Fund) and IEMG (iShares Core MSCI Emerging Markets ETF) are both funds - FZROX is a Large Cap Blend Equities fund managed by Fidelity, while IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index (USD) (Net). Over the past 5 years, FZROX returned 12.45%/yr vs 8.16%/yr for IEMG. A 0.69 correlation means they provide meaningful diversification when combined. FZROX charges 0.00%/yr vs 0.09%/yr for IEMG.

Performance

FZROX vs. IEMG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity ZERO Total Market Index Fund (FZROX) and iShares Core MSCI Emerging Markets ETF (IEMG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FZROX achieves a 9.69% return, which is significantly lower than IEMG's 26.58% return.

FZROX

• 1D: 0.50%
• 1M: 1.05%
• YTD: 9.69%
• 6M: 10.01%
• 1Y: 26.41%
• 3Y*: 20.73%
• 5Y*: 12.45%
• 10Y*: —

IEMG

• 1D: 3.05%
• 1M: 7.04%
• YTD: 26.58%
• 6M: 29.75%
• 1Y: 49.25%
• 3Y*: 22.05%
• 5Y*: 8.16%
• 10Y*: 10.66%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FZROX vs. IEMG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
FZROX Fidelity ZERO Total Market Index Fund	9.69%	17.23%	23.94%	26.20%	-19.21%	26.00%	20.51%	31.15%	-12.72%
IEMG iShares Core MSCI Emerging Markets ETF	26.58%	32.56%	6.50%	11.52%	-19.98%	-0.64%	17.87%	17.81%	-4.53%

Correlation

The correlation between FZROX and IEMG is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (All Time) Calculated using the full available price history since Aug 16, 2018	0.69

The correlation between FZROX and IEMG has been stable across timeframes, ranging from 0.67 to 0.75 - a consistent structural relationship.

Return for Risk

FZROX vs. IEMG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FZROX

FZROX Risk / Return Rank: 65
FZROX Sharpe Ratio Rank: 62
FZROX Sortino Ratio Rank: 56
FZROX Omega Ratio Rank: 58
FZROX Calmar Ratio Rank: 69
FZROX Martin Ratio Rank: 79

IEMG

IEMG Risk / Return Rank: 80
IEMG Sharpe Ratio Rank: 82
IEMG Sortino Ratio Rank: 75
IEMG Omega Ratio Rank: 83
IEMG Calmar Ratio Rank: 80
IEMG Martin Ratio Rank: 79

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FZROX vs. IEMG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity ZERO Total Market Index Fund (FZROX) and iShares Core MSCI Emerging Markets ETF (IEMG). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FZROX	IEMG	Difference
Sharpe ratio: Return per unit of total volatility	1.96	2.33	-0.37
Sortino ratio: Return per unit of downside risk	2.66	3.00	-0.34
Omega ratio: Gain probability vs. loss probability	1.35	1.44	-0.09
Calmar ratio: Return relative to maximum drawdown	2.81	3.75	-0.93
Martin ratio: Return relative to average drawdown	12.64	13.77	-1.14

FZROX vs. IEMG - Sharpe Ratio Comparison

The current FZROX Sharpe Ratio is 1.96, which is comparable to the IEMG Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of FZROX and IEMG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FZROX vs. IEMG - Drawdown Comparison

The maximum FZROX drawdown since its inception was -34.96%, smaller than the maximum IEMG drawdown of -38.71%. Use the drawdown chart below to compare losses from any high point for FZROX and IEMG.

Drawdown Indicators

	FZROX	IEMG	Difference
Max Drawdown Largest peak-to-trough decline	-34.96%	-38.71%	+3.75%
Max Drawdown (1Y) Largest decline over 1 year	-8.89%	-13.21%	+4.32%
Max Drawdown (3Y) Largest decline over 3 years	-19.38%	-17.21%	-2.17%
Max Drawdown (5Y) Largest decline over 5 years	-25.12%	-35.75%	+10.63%
Max Drawdown (10Y) Largest decline over 10 years	—	-38.71%	—
Current Drawdown Current decline from peak	-2.08%	-1.05%	-1.03%
Average Drawdown Average peak-to-trough decline	-5.49%	-12.95%	+7.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.98%	3.59%	-1.61%

Volatility

FZROX vs. IEMG - Volatility Comparison

The current volatility for Fidelity ZERO Total Market Index Fund (FZROX) is 4.66%, while iShares Core MSCI Emerging Markets ETF (IEMG) has a volatility of 11.01%. This indicates that FZROX experiences smaller price fluctuations and is considered to be less risky than IEMG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FZROX	IEMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.66%	11.01%	-6.35%
Volatility (6M) Calculated over the trailing 6-month period	9.97%	19.09%	-9.12%
Volatility (1Y) Calculated over the trailing 1-year period	12.77%	21.25%	-8.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.51%	18.78%	-1.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.13%	20.19%	-0.06%

FZROX vs. IEMG - Expense Ratio Comparison

FZROX has a 0.00% expense ratio, which is lower than IEMG's 0.09% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FZROX vs. IEMG - Dividend Comparison

FZROX's dividend yield for the trailing twelve months is around 0.93%, less than IEMG's 2.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FZROX Fidelity ZERO Total Market Index Fund	0.93%	1.02%	1.16%	1.36%	1.57%	1.25%	1.27%	1.51%	0.00%	0.00%	0.00%	0.00%
IEMG iShares Core MSCI Emerging Markets ETF	2.97%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%

Frequently Asked Questions

Can I hold both FZROX and IEMG in my portfolio?

FZROX and IEMG have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FZROX or IEMG?

IEMG has higher volatility (11.01%) compared to FZROX (4.66%). In terms of maximum drawdown, FZROX dropped -34.96% vs IEMG's -38.71%.

Which has better risk-adjusted returns?

IEMG currently has the higher Sharpe Ratio (2.33 vs 1.96), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.