IEMG is widely seen as the lower-cost alternative to the iShares MSCI Emerging Markets ETF (NYSEArca: EEM), but interest in the former, which is now home to nearly $21 billion in assets under management, indicates there is plenty of support for the ETF among advisors and institutional investors.
In the past couple of years, investors have increasingly turned to cheaper options to gain long-term exposure to various market segments.
Nevertheless, EEM is still a relevant investment as its vast liquidity and tight bid/ask spreads attract large institutional traders whom care more about executing large bets quickly than the long-term cost of holding the fund.
“IEMG tracks the MSCI Emerging Markets Investable Market Index. The ETF’s country weights are similar to what is found in EEM as China, South Korea and Taiwan combine for about 52% of the IEMG’s geographic weight,” notes Investopedia.
For more information on the ETF market, visit our ETF performance reports category.