IEUR vs. IEMG

Last updated Jun 14, 2026

IEUR (iShares Core MSCI Europe ETF) and IEMG (iShares Core MSCI Emerging Markets ETF) are both exchange-traded funds - IEUR is a Europe Equities fund tracking the MSCI Europe Investable Market Index, while IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index (USD) (Net). Both are passively managed. Over the past 10 years, IEUR returned 10.11%/yr vs 10.42%/yr for IEMG. A 0.74 correlation means they provide meaningful diversification when combined. Both charge a 0.09% expense ratio.

Performance

IEUR vs. IEMG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core MSCI Europe ETF (IEUR) 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, IEUR achieves a 7.65% return, which is significantly lower than IEMG's 22.84% return. Both investments have delivered pretty close results over the past 10 years, with IEUR having a 10.11% annualized return and IEMG not far ahead at 10.42%.

IEUR

• 1D: 0.14%
• 1M: 2.40%
• YTD: 7.65%
• 6M: 9.78%
• 1Y: 19.09%
• 3Y*: 16.42%
• 5Y*: 8.26%
• 10Y*: 10.11%

IEMG

• 1D: 0.61%
• 1M: 0.34%
• YTD: 22.84%
• 6M: 25.59%
• 1Y: 44.83%
• 3Y*: 21.33%
• 5Y*: 7.15%
• 10Y*: 10.42%

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

IEUR vs. IEMG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEUR iShares Core MSCI Europe ETF	7.65%	35.67%	1.40%	19.71%	-15.90%	16.71%	5.31%	24.95%	-14.86%	26.70%
IEMG iShares Core MSCI Emerging Markets ETF	22.84%	32.56%	6.50%	11.52%	-19.98%	-0.64%	17.87%	17.81%	-14.92%	37.38%

Correlation

The correlation between IEUR and IEMG is 0.73, 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	0.73
Correlation (3Y) Calculated over the trailing 3-year period	0.72
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.73
Correlation (All Time) Calculated using the full available price history since Jun 12, 2014	0.74

The correlation between IEUR and IEMG has been stable across timeframes, ranging from 0.72 to 0.74 - a consistent structural relationship.

IEUR vs. IEMG - Sectors Allocation Comparison

Sectors	IEUR	IEMG
Financial Services	22.5%	16.7%
Industrials	20.3%	8.0%
Healthcare	12.5%	3.2%
Technology	9.4%	42.1%
Consumer Defensive	7.7%	2.8%
Consumer Cyclical	7.0%	8.5%
Basic Materials	5.8%	6.3%
Energy	4.9%	3.3%
Utilities	4.4%	1.9%
Communication Services	3.9%	5.6%
Real Estate	1.5%	1.6%

Return for Risk

IEUR vs. IEMG — Risk / Return Rank

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

IEUR

IEUR Risk / Return Rank: 35
IEUR Sharpe Ratio Rank: 35
IEUR Sortino Ratio Rank: 35
IEUR Omega Ratio Rank: 33
IEUR Calmar Ratio Rank: 33
IEUR Martin Ratio Rank: 39

IEMG

IEMG Risk / Return Rank: 73
IEMG Sharpe Ratio Rank: 73
IEMG Sortino Ratio Rank: 67
IEMG Omega Ratio Rank: 76
IEMG Calmar Ratio Rank: 73
IEMG 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.

IEUR vs. IEMG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI Europe ETF (IEUR) 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.

	IEUR	IEMG	Difference
Sharpe ratio: Return per unit of total volatility	1.10	2.03	-0.93
Sortino ratio: Return per unit of downside risk	1.64	2.65	-1.01
Omega ratio: Gain probability vs. loss probability	1.20	1.39	-0.19
Calmar ratio: Return relative to maximum drawdown	1.44	3.23	-1.79
Martin ratio: Return relative to average drawdown	5.40	11.89	-6.49

IEUR vs. IEMG - Sharpe Ratio Comparison

The current IEUR Sharpe Ratio is 1.10, which is lower than the IEMG Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of IEUR 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

IEUR vs. IEMG - Drawdown Comparison

The maximum IEUR drawdown since its inception was -36.96%, roughly equal to the maximum IEMG drawdown of -38.71%. Use the drawdown chart below to compare losses from any high point for IEUR and IEMG.

Drawdown Indicators

	IEUR	IEMG	Difference
Max Drawdown Largest peak-to-trough decline	-36.96%	-38.71%	+1.75%
Max Drawdown (1Y) Largest decline over 1 year	-12.04%	-13.21%	+1.17%
Max Drawdown (3Y) Largest decline over 3 years	-14.25%	-17.21%	+2.96%
Max Drawdown (5Y) Largest decline over 5 years	-32.75%	-35.75%	+3.00%
Max Drawdown (10Y) Largest decline over 10 years	-36.96%	-38.71%	+1.75%
Current Drawdown Current decline from peak	-0.44%	-3.98%	+3.54%
Average Drawdown Average peak-to-trough decline	-8.21%	-12.95%	+4.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.22%	3.59%	-0.37%

Volatility

IEUR vs. IEMG - Volatility Comparison

The current volatility for iShares Core MSCI Europe ETF (IEUR) is 5.70%, while iShares Core MSCI Emerging Markets ETF (IEMG) has a volatility of 10.60%. This indicates that IEUR 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

	IEUR	IEMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.70%	10.60%	-4.90%
Volatility (6M) Calculated over the trailing 6-month period	13.31%	18.89%	-5.58%
Volatility (1Y) Calculated over the trailing 1-year period	15.83%	21.08%	-5.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.81%	18.73%	-0.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.68%	20.17%	-1.49%

IEUR vs. IEMG - Expense Ratio Comparison

Both IEUR and IEMG have an expense ratio of 0.09%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

IEUR vs. IEMG - Dividend Comparison

IEUR's dividend yield for the trailing twelve months is around 2.76%, more than IEMG's 2.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEMG iShares Core MSCI Emerging Markets ETF	2.24%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%
IEUR iShares Core MSCI Europe ETF	2.76%	2.97%	3.54%	3.17%	3.05%	2.88%	2.13%	3.26%	3.76%	2.64%	3.19%	2.79%

Frequently Asked Questions

Can I hold both IEUR and IEMG in my portfolio?

IEUR and IEMG have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IEUR or IEMG?

IEMG has higher volatility (10.60%) compared to IEUR (5.70%). In terms of maximum drawdown, IEUR dropped -36.96% vs IEMG's -38.71%.

Which ETF is better, IEUR or IEMG?

On 10-year performance, IEMG leads with 10.42% vs 10.11% for IEUR. Both ETFs have the same 0.09% expense ratio. On volatility, IEUR has been the lower-risk option at 5.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEUR or IEMG?

Over the 10-year period, IEMG has performed better with a 10.42% return vs 10.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEUR or IEMG?

IEUR and IEMG have the same expense ratio: 0.09% per year.

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

IEUR has the higher dividend yield at 2.76%, compared with 2.24% for IEMG.

What is the main difference between IEUR and IEMG?

IEUR is categorized as Europe Equities, while IEMG is Emerging Markets Diversified. IEUR tracks MSCI Europe Investable Market Index, while IEMG tracks MSCI Emerging Markets Investable Market Index (USD) (Net).

Which has better risk-adjusted returns?

IEMG currently has the higher Sharpe Ratio (2.03 vs 1.10), 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.