IEMG vs. FDEM

Last updated Jun 25, 2026

IEMG (iShares Core MSCI Emerging Markets ETF) and FDEM (Fidelity Emerging Markets Multifactor ETF) are both exchange-traded funds - IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index (USD) (Net), while FDEM is a Emerging Markets Equities fund tracking the Fidelity Targeted Emerging Markets Factor Index. Both are passively managed. Over the past 5 years, IEMG returned 6.93%/yr vs 8.61%/yr for FDEM. Their correlation of 0.91 suggests significant overlap in exposure. IEMG charges 0.09%/yr vs 0.45%/yr for FDEM.

Performance

IEMG vs. FDEM - Performance Comparison

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

Returns By Period

In the year-to-date period, IEMG achieves a 22.14% return, which is significantly higher than FDEM's 17.45% return.

IEMG

• 1D: 0.16%
• 1M: 1.90%
• YTD: 22.14%
• 6M: 22.65%
• 1Y: 40.36%
• 3Y*: 22.21%
• 5Y*: 6.93%
• 10Y*: 10.40%

FDEM

• 1D: -0.53%
• 1M: 0.76%
• YTD: 17.45%
• 6M: 18.22%
• 1Y: 32.93%
• 3Y*: 22.12%
• 5Y*: 8.61%
• 10Y*: —

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

IEMG vs. FDEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
IEMG iShares Core MSCI Emerging Markets ETF	22.14%	32.56%	6.50%	11.52%	-19.98%	-0.64%	17.87%	7.43%
FDEM Fidelity Emerging Markets Multifactor ETF	17.45%	26.75%	9.34%	17.26%	-13.11%	-3.52%	8.87%	5.60%

Correlation

The correlation between IEMG and FDEM is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (All Time) Calculated using the full available price history since Feb 28, 2019	0.91

The correlation between IEMG and FDEM has been stable across timeframes, ranging from 0.91 to 0.94 - a consistent structural relationship.

IEMG vs. FDEM - Sectors Allocation Comparison

Sectors	IEMG	FDEM
Technology	42.1%	38.5%
Financial Services	16.7%	15.0%
Consumer Cyclical	8.5%	11.5%
Industrials	8.0%	4.4%
Basic Materials	6.3%	2.7%
Communication Services	5.6%	9.6%
Energy	3.3%	7.3%
Healthcare	3.2%	-
Consumer Defensive	2.8%	6.5%
Utilities	1.9%	-
Real Estate	1.6%	4.6%

Return for Risk

IEMG vs. FDEM — Risk / Return Rank

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

IEMG

IEMG Risk / Return Rank: 64
IEMG Sharpe Ratio Rank: 62
IEMG Sortino Ratio Rank: 56
IEMG Omega Ratio Rank: 67
IEMG Calmar Ratio Rank: 68
IEMG Martin Ratio Rank: 68

FDEM

FDEM Risk / Return Rank: 57
FDEM Sharpe Ratio Rank: 55
FDEM Sortino Ratio Rank: 50
FDEM Omega Ratio Rank: 58
FDEM Calmar Ratio Rank: 59
FDEM Martin Ratio Rank: 60

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.

IEMG vs. FDEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI Emerging Markets ETF (IEMG) and Fidelity Emerging Markets Multifactor ETF (FDEM). 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.

	IEMG	FDEM	Difference
Sharpe ratio: Return per unit of total volatility	1.84	1.68	+0.17
Sortino ratio: Return per unit of downside risk	2.40	2.21	+0.19
Omega ratio: Gain probability vs. loss probability	1.36	1.32	+0.04
Calmar ratio: Return relative to maximum drawdown	3.07	2.61	+0.46
Martin ratio: Return relative to average drawdown	11.18	9.70	+1.48

IEMG vs. FDEM - Sharpe Ratio Comparison

The current IEMG Sharpe Ratio is 1.84, which is comparable to the FDEM Sharpe Ratio of 1.68. The chart below compares the historical Sharpe Ratios of IEMG and FDEM, 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

IEMG vs. FDEM - Drawdown Comparison

The maximum IEMG drawdown since its inception was -38.71%, which is greater than FDEM's maximum drawdown of -33.65%. Use the drawdown chart below to compare losses from any high point for IEMG and FDEM.

Drawdown Indicators

	IEMG	FDEM	Difference
Max Drawdown Largest peak-to-trough decline	-38.71%	-33.65%	-5.06%
Max Drawdown (1Y) Largest decline over 1 year	-13.21%	-12.70%	-0.51%
Max Drawdown (3Y) Largest decline over 3 years	-17.21%	-16.04%	-1.17%
Max Drawdown (5Y) Largest decline over 5 years	-35.75%	-28.47%	-7.28%
Max Drawdown (10Y) Largest decline over 10 years	-38.71%	—	—
Current Drawdown Current decline from peak	-5.29%	-5.59%	+0.30%
Average Drawdown Average peak-to-trough decline	-12.93%	-8.79%	-4.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.62%	3.40%	+0.22%

Volatility

IEMG vs. FDEM - Volatility Comparison

iShares Core MSCI Emerging Markets ETF (IEMG) has a higher volatility of 12.22% compared to Fidelity Emerging Markets Multifactor ETF (FDEM) at 11.29%. This indicates that IEMG's price experiences larger fluctuations and is considered to be riskier than FDEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEMG	FDEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.22%	11.29%	+0.93%
Volatility (6M) Calculated over the trailing 6-month period	20.12%	18.06%	+2.06%
Volatility (1Y) Calculated over the trailing 1-year period	22.11%	19.86%	+2.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.99%	16.72%	+2.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.19%	18.22%	+1.97%

IEMG vs. FDEM - Expense Ratio Comparison

IEMG has a 0.09% expense ratio, which is lower than FDEM's 0.45% expense ratio.

Dividends

IEMG vs. FDEM - Dividend Comparison

IEMG's dividend yield for the trailing twelve months is around 2.21%, less than FDEM's 2.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDEM Fidelity Emerging Markets Multifactor ETF	2.98%	3.23%	4.05%	4.41%	3.95%	2.71%	1.84%	2.39%	0.00%	0.00%	0.00%	0.00%
IEMG iShares Core MSCI Emerging Markets ETF	2.21%	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 IEMG and FDEM in my portfolio?

With a correlation of 0.94, IEMG and FDEM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, IEMG or FDEM?

IEMG has higher volatility (12.22%) compared to FDEM (11.29%). In terms of maximum drawdown, IEMG dropped -38.71% vs FDEM's -33.65%.

Which ETF is better, IEMG or FDEM?

On 5-year performance, FDEM leads with 8.61% vs 6.93% for IEMG. On fees, IEMG is cheaper at 0.09% per year. On volatility, FDEM has been the lower-risk option at 11.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEMG or FDEM?

Over the 5-year period, FDEM has performed better with a 8.61% return vs 6.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEMG or FDEM?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.45% for FDEM.

Which ETF pays a higher dividend yield, IEMG or FDEM?

FDEM has the higher dividend yield at 2.98%, compared with 2.21% for IEMG.

What is the main difference between IEMG and FDEM?

IEMG is categorized as Emerging Markets Diversified, while FDEM is Emerging Markets Equities. IEMG tracks MSCI Emerging Markets Investable Market Index (USD) (Net), while FDEM tracks Fidelity Targeted Emerging Markets Factor Index. They also come from different issuers: iShares and Fidelity. Their fees differ too: 0.09% for IEMG and 0.45% for FDEM.

Which has better risk-adjusted returns?

IEMG currently has the higher Sharpe Ratio (1.84 vs 1.68), 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.