IEMG vs. SMH

Last updated Jun 21, 2026

IEMG (iShares Core MSCI Emerging Markets ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index (USD) (Net), while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, IEMG returned 10.64%/yr vs 38.22%/yr for SMH. A 0.64 correlation means they provide meaningful diversification when combined. IEMG charges 0.09%/yr vs 0.35%/yr for SMH.

Performance

IEMG vs. SMH - Performance Comparison

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

Returns By Period

In the year-to-date period, IEMG achieves a 28.41% return, which is significantly lower than SMH's 83.23% return. Over the past 10 years, IEMG has underperformed SMH with an annualized return of 10.64%, while SMH has yielded a comparatively higher 38.22% annualized return.

IEMG

• 1D: 3.14%
• 1M: 7.13%
• YTD: 28.41%
• 6M: 30.61%
• 1Y: 52.54%
• 3Y*: 22.63%
• 5Y*: 8.51%
• 10Y*: 10.64%

SMH

• 1D: 5.76%
• 1M: 14.50%
• YTD: 83.23%
• 6M: 85.82%
• 1Y: 154.33%
• 3Y*: 63.38%
• 5Y*: 40.67%
• 10Y*: 38.22%

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

IEMG vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEMG iShares Core MSCI Emerging Markets ETF	28.41%	32.56%	6.50%	11.52%	-19.98%	-0.64%	17.87%	17.81%	-14.92%	37.38%
SMH VanEck Semiconductor ETF	83.23%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between IEMG and SMH is 0.77, 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	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Oct 24, 2012	0.64

The correlation between IEMG and SMH shifts across timeframes, from 0.64 (all time) to 0.77 (1 year), reflecting how their relationship changes across market environments.

IEMG vs. SMH - Sectors Allocation Comparison

Sectors	IEMG	SMH
Technology	42.1%	100.0%
Financial Services	16.7%	-
Consumer Cyclical	8.5%	-
Industrials	8.0%	-
Basic Materials	6.3%	-
Communication Services	5.6%	-
Energy	3.3%	-
Healthcare	3.2%	-
Consumer Defensive	2.8%	-
Utilities	1.9%	-
Real Estate	1.6%	-

Return for Risk

IEMG vs. SMH — Risk / Return Rank

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

IEMG

IEMG Risk / Return Rank: 79
IEMG Sharpe Ratio Rank: 81
IEMG Sortino Ratio Rank: 74
IEMG Omega Ratio Rank: 81
IEMG Calmar Ratio Rank: 80
IEMG Martin Ratio Rank: 78

SMH

SMH Risk / Return Rank: 96
SMH Sharpe Ratio Rank: 97
SMH Sortino Ratio Rank: 94
SMH Omega Ratio Rank: 94
SMH Calmar Ratio Rank: 97
SMH Martin Ratio Rank: 97

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. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI Emerging Markets ETF (IEMG) and VanEck Semiconductor ETF (SMH). 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	SMH	Difference
Sharpe ratio: Return per unit of total volatility	2.42	4.49	-2.07
Sortino ratio: Return per unit of downside risk	3.11	4.50	-1.39
Omega ratio: Gain probability vs. loss probability	1.46	1.64	-0.18
Calmar ratio: Return relative to maximum drawdown	3.92	10.25	-6.33
Martin ratio: Return relative to average drawdown	14.41	37.49	-23.08

IEMG vs. SMH - Sharpe Ratio Comparison

The current IEMG Sharpe Ratio is 2.42, which is lower than the SMH Sharpe Ratio of 4.49. The chart below compares the historical Sharpe Ratios of IEMG and SMH, 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. SMH - Drawdown Comparison

The maximum IEMG drawdown since its inception was -38.71%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for IEMG and SMH.

Drawdown Indicators

	IEMG	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-38.71%	-84.96%	+46.25%
Max Drawdown (1Y) Largest decline over 1 year	-13.21%	-14.93%	+1.72%
Max Drawdown (3Y) Largest decline over 3 years	-17.21%	-35.74%	+18.53%
Max Drawdown (5Y) Largest decline over 5 years	-35.75%	-45.30%	+9.55%
Max Drawdown (10Y) Largest decline over 10 years	-38.71%	-45.30%	+6.59%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-12.94%	-41.02%	+28.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.59%	4.07%	-0.48%

Volatility

IEMG vs. SMH - Volatility Comparison

The current volatility for iShares Core MSCI Emerging Markets ETF (IEMG) is 10.76%, while VanEck Semiconductor ETF (SMH) has a volatility of 17.53%. This indicates that IEMG experiences smaller price fluctuations and is considered to be less risky than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEMG	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.76%	17.53%	-6.77%
Volatility (6M) Calculated over the trailing 6-month period	19.32%	28.48%	-9.16%
Volatility (1Y) Calculated over the trailing 1-year period	21.41%	34.09%	-12.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.83%	35.67%	-16.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.22%	32.94%	-12.72%

IEMG vs. SMH - Expense Ratio Comparison

IEMG has a 0.09% expense ratio, which is lower than SMH's 0.35% expense ratio.

Dividends

IEMG vs. SMH - Dividend Comparison

IEMG's dividend yield for the trailing twelve months is around 2.10%, more than SMH's 0.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEMG iShares Core MSCI Emerging Markets ETF	2.10%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%
SMH VanEck Semiconductor ETF	0.17%	0.31%	0.44%	0.60%	1.18%	0.51%	0.69%	1.50%	1.88%	1.43%	0.80%	2.14%

Frequently Asked Questions

Can I hold both IEMG and SMH in my portfolio?

IEMG and SMH have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IEMG or SMH?

SMH has higher volatility (17.53%) compared to IEMG (10.76%). In terms of maximum drawdown, IEMG dropped -38.71% vs SMH's -84.96%.

Which ETF is better, IEMG or SMH?

On 10-year performance, SMH leads with 38.22% vs 10.64% for IEMG. On fees, IEMG is cheaper at 0.09% per year. On volatility, IEMG has been the lower-risk option at 10.76%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEMG or SMH?

Over the 10-year period, SMH has performed better with a 38.22% return vs 10.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEMG or SMH?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.35% for SMH.

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

IEMG has the higher dividend yield at 2.10%, compared with 0.17% for SMH.

What is the main difference between IEMG and SMH?

IEMG is categorized as Emerging Markets Diversified, while SMH is Semiconductors. IEMG tracks MSCI Emerging Markets Investable Market Index (USD) (Net), while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: iShares and VanEck. Their fees differ too: 0.09% for IEMG and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.49 vs 2.42), 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.