TLTE vs. IEMG

Last updated Jun 5, 2026

TLTE (FlexShares Morningstar Emerging Markets Factor Tilt Index) and IEMG (iShares Core MSCI Emerging Markets ETF) are both exchange-traded funds - TLTE is a Foreign Large Cap Equities fund tracking the Morningstar Emerging Markets Factor Tilt 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, TLTE returned 9.47%/yr vs 9.39%/yr for IEMG. Their correlation of 0.95 suggests significant overlap in exposure. TLTE charges 0.59%/yr vs 0.09%/yr for IEMG.

Performance

TLTE vs. IEMG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) 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, TLTE achieves a 23.54% return, which is significantly higher than IEMG's 16.97% return. Both investments have delivered pretty close results over the past 10 years, with TLTE having a 9.47% annualized return and IEMG not far behind at 9.39%.

TLTE

• 1D: -0.69%
• 1M: 3.64%
• YTD: 23.54%
• 6M: 25.97%
• 1Y: 45.35%
• 3Y*: 22.09%
• 5Y*: 7.43%
• 10Y*: 9.47%

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%

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

TLTE vs. IEMG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	23.54%	30.21%	3.53%	13.62%	-17.31%	4.79%	12.10%	14.51%	-17.44%	32.82%
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%

Correlation

The correlation between TLTE and IEMG is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Oct 25, 2012	0.95

The correlation between TLTE and IEMG has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

TLTE vs. IEMG - Sectors Allocation Comparison

Sectors	TLTE	IEMG
Technology	27.3%	35.0%
Financial Services	18.9%	18.4%
Industrials	11.7%	9.0%
Consumer Cyclical	10.5%	9.5%
Basic Materials	7.7%	6.9%
Communication Services	4.6%	6.4%
Energy	4.4%	3.8%
Real Estate	4.3%	1.7%
Consumer Defensive	4.2%	3.3%
Utilities	3.1%	2.2%
Healthcare	3.1%	3.7%

Return for Risk

TLTE vs. IEMG — Risk / Return Rank

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

TLTE

TLTE Risk / Return Rank: 75
TLTE Sharpe Ratio Rank: 78
TLTE Sortino Ratio Rank: 73
TLTE Omega Ratio Rank: 77
TLTE Calmar Ratio Rank: 71
TLTE Martin Ratio Rank: 74

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

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.

TLTE vs. IEMG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) 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.

	TLTE	IEMG	Difference
Sharpe ratio: Return per unit of total volatility	2.48	1.91	+0.57
Sortino ratio: Return per unit of downside risk	3.27	2.49	+0.79
Omega ratio: Gain probability vs. loss probability	1.45	1.37	+0.09
Calmar ratio: Return relative to maximum drawdown	3.50	2.97	+0.53
Martin ratio: Return relative to average drawdown	13.71	11.26	+2.45
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TLTE vs. IEMG - Sharpe Ratio Comparison

The current TLTE Sharpe Ratio is 2.48, which is comparable to the IEMG Sharpe Ratio of 1.91. The chart below compares the historical Sharpe Ratios of TLTE 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.

Sharpe Ratios by Period

	TLTE	IEMG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.48	1.91	+0.57
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.44	0.32	+0.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	0.47	+0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.32	+0.02

Drawdowns

TLTE vs. IEMG - Drawdown Comparison

The maximum TLTE drawdown since its inception was -44.21%, which is greater than IEMG's maximum drawdown of -38.71%. Use the drawdown chart below to compare losses from any high point for TLTE and IEMG.

Drawdown Indicators

	TLTE	IEMG	Difference
Max Drawdown Largest peak-to-trough decline	-44.21%	-38.71%	-5.50%
Max Drawdown (1Y) Largest decline over 1 year	-13.04%	-13.21%	+0.17%
Max Drawdown (3Y) Largest decline over 3 years	-17.43%	-17.21%	-0.22%
Max Drawdown (5Y) Largest decline over 5 years	-33.51%	-35.75%	+2.24%
Max Drawdown (10Y) Largest decline over 10 years	-44.21%	-38.71%	-5.50%
Current Drawdown Current decline from peak	-1.98%	-8.56%	+6.58%
Average Drawdown Average peak-to-trough decline	-12.15%	-12.97%	+0.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.32%	3.47%	-0.15%

Volatility

TLTE vs. IEMG - Volatility Comparison

The current volatility for FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) is 7.87%, while iShares Core MSCI Emerging Markets ETF (IEMG) has a volatility of 10.23%. This indicates that TLTE 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

	TLTE	IEMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.87%	10.23%	-2.36%
Volatility (6M) Calculated over the trailing 6-month period	16.12%	18.28%	-2.16%
Volatility (1Y) Calculated over the trailing 1-year period	18.43%	20.52%	-2.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.83%	18.60%	-1.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.40%	20.13%	-1.73%

TLTE vs. IEMG - Expense Ratio Comparison

TLTE has a 0.59% expense ratio, which is higher than IEMG's 0.09% expense ratio.

Dividends

TLTE vs. IEMG - Dividend Comparison

TLTE's dividend yield for the trailing twelve months is around 3.04%, more than IEMG's 2.35% 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%
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	3.04%	3.76%	3.73%	4.03%	4.42%	3.21%	1.95%	3.23%	3.02%	2.12%	2.30%	2.00%

Frequently Asked Questions

Can I hold both TLTE and IEMG in my portfolio?

With a correlation of 0.96, TLTE 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, TLTE or IEMG?

IEMG has higher volatility (10.23%) compared to TLTE (7.87%). In terms of maximum drawdown, TLTE dropped -44.21% vs IEMG's -38.71%.

Which ETF is better, TLTE or IEMG?

On 10-year performance, TLTE leads with 9.47% vs 9.39% for IEMG. On fees, IEMG is cheaper at 0.09% per year. On volatility, TLTE has been the lower-risk option at 7.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TLTE or IEMG?

Over the 10-year period, TLTE has performed better with a 9.47% return vs 9.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TLTE or IEMG?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.59% for TLTE.

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

TLTE has the higher dividend yield at 3.04%, compared with 2.35% for IEMG.

What is the main difference between TLTE and IEMG?

TLTE is categorized as Foreign Large Cap Equities, while IEMG is Emerging Markets Diversified. TLTE tracks Morningstar Emerging Markets Factor Tilt Index, while IEMG tracks MSCI Emerging Markets Investable Market Index (USD) (Net). They also come from different issuers: Northern Trust and iShares. Their fees differ too: 0.59% for TLTE and 0.09% for IEMG.

Which has better risk-adjusted returns?

TLTE currently has the higher Sharpe Ratio (2.48 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.