Emerging Markets ETFs: Why You Should Oppose the Pros

IEMG debuted in October 2012 as part of the iShares core suite of ETFs aimed at cost-conscious, long-term investors. However, it is clear many advisors and other professional investors have embraced IEMG. Year-to-date, IEMG has $638.2 million in new money, bringing its assets under management to $10.9 billion. That is a big enough total to confirm the involvement of professional money in IEMG.

IEMG charges just 0.16% per year, or $16 for every $10,000 invested. Over multi-year holding periods, it is reasonable to expect that IEMG will outpace EEM simply due to the former’s significantly lower expense ratio.

“So while institutions continue to be blinded by ETF exchange volume, retail investors shouldn’t be fooled. Popularity doesn’t always equal smart,” adds Bloomberg.

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iShares Core MSCI Emerging Markets ETF