IEMG vs. SPY

Last updated Jun 6, 2026

IEMG (iShares Core MSCI Emerging Markets ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index (USD) (Net), while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, IEMG returned 9.39%/yr vs 15.16%/yr for SPY. A 0.70 correlation means they provide meaningful diversification when combined. IEMG charges 0.09%/yr vs 0.09%/yr for SPY.

Performance

IEMG vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core MSCI Emerging Markets ETF (IEMG) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IEMG achieves a 16.97% return, which is significantly higher than SPY's 8.45% return. Over the past 10 years, IEMG has underperformed SPY with an annualized return of 9.39%, while SPY has yielded a comparatively higher 15.16% annualized return.

IEMG

• 1D: -6.40%
• 1M: -4.75%
• YTD: 16.97%
• 6M: 18.63%
• 1Y: 39.01%
• 3Y*: 20.12%
• 5Y*: 5.95%
• 10Y*: 9.39%

SPY

• 1D: -2.58%
• 1M: 0.51%
• YTD: 8.45%
• 6M: 8.18%
• 1Y: 25.79%
• 3Y*: 21.43%
• 5Y*: 13.32%
• 10Y*: 15.16%

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

IEMG vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEMG iShares Core MSCI Emerging Markets ETF	16.97%	32.56%	6.50%	11.52%	-19.98%	-0.64%	17.87%	17.81%	-14.92%	37.38%
SPY State Street SPDR S&P 500 ETF	8.45%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between IEMG and SPY 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	0.66
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Oct 25, 2012	0.70

The correlation between IEMG and SPY has been stable across timeframes, ranging from 0.66 to 0.75 - a consistent structural relationship.

IEMG vs. SPY - Sectors Allocation Comparison

Sectors	IEMG	SPY
Technology	35.0%	35.9%
Financial Services	18.4%	11.8%
Consumer Cyclical	9.5%	10.3%
Industrials	9.0%	7.8%
Basic Materials	6.9%	1.8%
Communication Services	6.4%	11.3%
Energy	3.8%	3.6%
Healthcare	3.7%	8.4%
Consumer Defensive	3.3%	4.8%
Utilities	2.2%	2.4%
Real Estate	1.7%	1.9%

Return for Risk

IEMG vs. SPY — Risk / Return Rank

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

IEMG

IEMG Risk / Return Rank: 59
IEMG Sharpe Ratio Rank: 58
IEMG Sortino Ratio Rank: 52
IEMG Omega Ratio Rank: 61
IEMG Calmar Ratio Rank: 61
IEMG Martin Ratio Rank: 64

SPY

SPY Risk / Return Rank: 66
SPY Sharpe Ratio Rank: 66
SPY Sortino Ratio Rank: 63
SPY Omega Ratio Rank: 66
SPY Calmar Ratio Rank: 60
SPY Martin Ratio Rank: 73

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. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI Emerging Markets ETF (IEMG) and State Street SPDR S&P 500 ETF (SPY). 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.

	IEMG	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.91	2.14	-0.23
Sortino ratio: Return per unit of downside risk	2.49	2.88	-0.39
Omega ratio: Gain probability vs. loss probability	1.37	1.39	-0.02
Calmar ratio: Return relative to maximum drawdown	2.97	2.92	+0.05
Martin ratio: Return relative to average drawdown	11.26	13.50	-2.24
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IEMG vs. SPY - Sharpe Ratio Comparison

The current IEMG Sharpe Ratio is 1.91, which is comparable to the SPY Sharpe Ratio of 2.14. The chart below compares the historical Sharpe Ratios of IEMG and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	IEMG	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.91	2.14	-0.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.32	0.78	-0.46
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.85	-0.38
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	0.58	-0.26

Drawdowns

IEMG vs. SPY - Drawdown Comparison

The maximum IEMG drawdown since its inception was -38.71%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for IEMG and SPY.

Drawdown Indicators

	IEMG	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-38.71%	-55.19%	+16.48%
Max Drawdown (1Y) Largest decline over 1 year	-13.21%	-8.88%	-4.33%
Max Drawdown (3Y) Largest decline over 3 years	-17.21%	-18.76%	+1.55%
Max Drawdown (5Y) Largest decline over 5 years	-35.75%	-24.50%	-11.25%
Max Drawdown (10Y) Largest decline over 10 years	-38.71%	-33.72%	-4.99%
Current Drawdown Current decline from peak	-8.56%	-2.90%	-5.66%
Average Drawdown Average peak-to-trough decline	-12.97%	-9.05%	-3.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.47%	1.91%	+1.56%

Volatility

IEMG vs. SPY - Volatility Comparison

iShares Core MSCI Emerging Markets ETF (IEMG) has a higher volatility of 10.23% compared to State Street SPDR S&P 500 ETF (SPY) at 3.73%. This indicates that IEMG's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEMG	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.23%	3.73%	+6.50%
Volatility (6M) Calculated over the trailing 6-month period	18.28%	9.31%	+8.97%
Volatility (1Y) Calculated over the trailing 1-year period	20.52%	12.12%	+8.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.60%	17.09%	+1.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.13%	17.95%	+2.18%

IEMG vs. SPY - Expense Ratio Comparison

IEMG has a 0.09% expense ratio, which is lower than SPY'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

IEMG vs. SPY - Dividend Comparison

IEMG's dividend yield for the trailing twelve months is around 2.35%, more than SPY's 1.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEMG iShares Core MSCI Emerging Markets ETF	2.35%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%
SPY State Street SPDR S&P 500 ETF	1.00%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both IEMG and SPY in my portfolio?

IEMG and SPY 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, IEMG or SPY?

IEMG has higher volatility (10.23%) compared to SPY (3.73%). In terms of maximum drawdown, IEMG dropped -38.71% vs SPY's -55.19%.

Which ETF is better, IEMG or SPY?

On 10-year performance, SPY leads with 15.16% vs 9.39% for IEMG. On fees, IEMG is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 3.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEMG or SPY?

Over the 10-year period, SPY has performed better with a 15.16% return vs 9.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEMG or SPY?

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

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

IEMG has the higher dividend yield at 2.35%, compared with 1.00% for SPY.

What is the main difference between IEMG and SPY?

IEMG is categorized as Emerging Markets Diversified, while SPY is S&P 500. IEMG tracks MSCI Emerging Markets Investable Market Index (USD) (Net), while SPY tracks S&P 500 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.09% for IEMG and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.14 vs 1.91), 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.