MFEM vs. IEMG

Last updated Aug 2, 2026

MFEM (PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF) and IEMG (iShares Core MSCI Emerging Markets ETF) are both Emerging Markets Equities funds - MFEM tracks the RAFI Dynamic Multi-Factor Emerging Market Index while IEMG tracks the MSCI Emerging Markets Investable Market Index (USD) (Net). Both are passively managed. Over the past 5 years, MFEM returned 7.21%/yr vs 7.26%/yr for IEMG. Their correlation of 0.93 means they have usually moved in the same direction. MFEM charges 0.49%/yr vs 0.09%/yr for IEMG.

Performance

MFEM vs. IEMG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) and iShares Core MSCI Emerging Markets ETF (IEMG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with MFEM having a 16.47% return and IEMG slightly lower at 16.38%.

MFEM

• 1D: -0.21%
• 1M: -2.90%
• 6M: 6.30%
• YTD: 16.47%
• 1Y: 30.01%
• 3Y*: 15.79%
• 5Y*: 7.21%
• 10Y*: —
• ALL TIME*: 6.85%

IEMG

• 1D: 0.73%
• 1M: -2.79%
• 6M: 7.82%
• YTD: 16.38%
• 1Y: 32.88%
• 3Y*: 18.00%
• 5Y*: 7.26%
• 10Y*: 8.84%
• ALL TIME*: 6.11%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
IEMG iShares Core MSCI Emerging Markets ETF	$833.06M	$972.69M	$1.09B
MFEM PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF	$581.34K	$458.22K	$623.99K

MFEM vs. IEMG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MFEM PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF	16.47%	25.33%	4.73%	15.14%	-19.50%	10.77%	11.33%	15.26%	-14.64%	4.86%
IEMG iShares Core MSCI Emerging Markets ETF	16.38%	32.56%	6.50%	11.52%	-19.98%	-0.64%	17.87%	17.81%	-14.92%	7.74%

Correlation

The correlation between MFEM and IEMG is 0.91, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.91
Correlation (3Y) Balances recent behavior with more history.	0.93
Correlation (5Y) Shows whether the relationship held over a longer period.	0.92
Correlation (All Time) Calculated using the full available price history since Sep 6, 2017	0.93

The correlation between MFEM and IEMG has been stable across timeframes, ranging from 0.91 to 0.93 - a consistent structural relationship.

MFEM vs. IEMG - Sectors Allocation Comparison

Sectors	MFEM	IEMG
Technology	34.0%	43.6%
Financial Services	14.4%	17.3%
Basic Materials	13.1%	5.8%
Industrials	10.1%	7.7%
Energy	7.7%	3.0%
Consumer Cyclical	7.0%	7.7%
Communication Services	4.4%	5.6%
Consumer Defensive	3.4%	2.8%
Utilities	3.3%	1.9%
Healthcare	1.4%	3.2%
Real Estate	1.0%	1.5%

Return for Risk

MFEM vs. IEMG — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

MFEM

MFEM Risk / Return Rank: 53
MFEM Sharpe Ratio Rank: 54
MFEM Sortino Ratio Rank: 51
MFEM Omega Ratio Rank: 56
MFEM Calmar Ratio Rank: 55
MFEM Martin Ratio Rank: 50

IEMG

IEMG Risk / Return Rank: 60
IEMG Sharpe Ratio Rank: 57
IEMG Sortino Ratio Rank: 53
IEMG Omega Ratio Rank: 61
IEMG Calmar Ratio Rank: 68
IEMG Martin Ratio Rank: 60

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

MFEM vs. IEMG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) 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.

	MFEM	IEMG	Difference
Sharpe ratio: Return per unit of total volatility	1.31	1.35	-0.04
Sortino ratio: Return per unit of downside risk	1.82	1.85	-0.03
Omega ratio: Gain probability vs. loss probability	1.25	1.26	-0.01
Calmar ratio: Return relative to maximum drawdown	1.97	2.33	-0.36
Martin ratio: Return relative to average drawdown	5.82	7.16	-1.34

MFEM vs. IEMG - Sharpe Ratio Comparison

The current MFEM Sharpe Ratio is 1.31, which is comparable to the IEMG Sharpe Ratio of 1.35. The chart below compares the historical Sharpe Ratios of MFEM 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

MFEM vs. IEMG - Drawdown Comparison

The maximum MFEM drawdown since its inception was -43.32%, which is greater than IEMG's maximum drawdown of -38.71%. Use the drawdown chart below to compare losses from any high point for MFEM and IEMG.

Drawdown Indicators

	MFEM	IEMG	Difference
Max Drawdown Largest peak-to-trough decline	-43.32%	-38.71%	-4.61%
Max Drawdown (1Y) Largest decline over 1 year	-15.05%	-13.78%	-1.27%
Max Drawdown (3Y) Largest decline over 3 years	-19.22%	-17.21%	-2.01%
Max Drawdown (5Y) Largest decline over 5 years	-30.78%	-33.61%	+2.83%
Max Drawdown (10Y) Largest decline over 10 years	—	-38.71%	—
Current Drawdown Current decline from peak	-12.43%	-9.76%	-2.67%
Average Drawdown Average peak-to-trough decline	-11.43%	-12.89%	+1.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.08%	4.47%	+0.61%

Volatility

MFEM vs. IEMG - Volatility Comparison

The current volatility for PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is 7.50%, while iShares Core MSCI Emerging Markets ETF (IEMG) has a volatility of 8.73%. This indicates that MFEM 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

	MFEM	IEMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.50%	8.73%	-1.23%
Volatility (6M) Calculated over the trailing 6-month period	20.84%	21.74%	-0.90%
Volatility (1Y) Calculated over the trailing 1-year period	22.65%	23.71%	-1.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.42%	19.27%	-1.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.70%	20.32%	-0.62%

MFEM vs. IEMG - Expense Ratio Comparison

MFEM has a 0.49% expense ratio, which is higher than IEMG's 0.09% expense ratio.

Dividends

MFEM vs. IEMG - Dividend Comparison

MFEM's dividend yield for the trailing twelve months is around 2.37%, more than IEMG's 2.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEMG iShares Core MSCI Emerging Markets ETF	2.32%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%
MFEM PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF	2.37%	2.77%	5.89%	4.01%	7.01%	29.96%	1.70%	2.37%	1.18%	0.21%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MFEM and IEMG in my portfolio?

With a correlation of 0.91, MFEM and IEMG 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, MFEM or IEMG?

IEMG has higher volatility (8.73%) compared to MFEM (7.50%). In terms of maximum drawdown, MFEM dropped -43.32% vs IEMG's -38.71%.

Which ETF is better, MFEM or IEMG?

On 5-year performance, IEMG leads with 7.26% vs 7.21% for MFEM. On fees, IEMG is cheaper at 0.09% per year. On volatility, MFEM has been the lower-risk option at 7.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MFEM or IEMG?

Over the 5-year period, IEMG has performed better with a 7.26% return vs 7.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MFEM or IEMG?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.49% for MFEM.

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

MFEM has the higher dividend yield at 2.37%, compared with 2.32% for IEMG.

What is the main difference between MFEM and IEMG?

MFEM tracks RAFI Dynamic Multi-Factor Emerging Market Index, while IEMG tracks MSCI Emerging Markets Investable Market Index (USD) (Net). They also come from different issuers: PIMCO and iShares. Their fees differ too: 0.49% for MFEM and 0.09% for IEMG.

Which has better risk-adjusted returns?

IEMG currently has the higher Sharpe Ratio (1.35 vs 1.31), 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.