“Other investors have reached the same decision. Over the past three years, IEMG has had $10.9 billion in net flows, while EEM and VWO have lost $10.9 billion and $10.2 billion each, according to data from XTF Inc,” reports Ari Weinberg for the Wall Street Journal.
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Underscoring the point that fees are meaningful, the return differential between EEM and IEMG over the past two years is largely attributable to the difference in fees between the two ETFs.
“How much does index differential matter? Not much, at least so far. In the three years through May 3, IEMG was down 13.98%, compared with drops of 13.73% for VWO and 15.8% for EEM, according to XTF. Can you spot the fee?,” adds the Journal.
For more news and strategy on the Emerging Markets ETFs, visit our Emerging Market category.
iShares Core MSCI Emerging Markets ETF
