iShares MSCI Emerging Markets ETF (IEM) — Review & Analysis

IEM is the largest emerging markets ETF on the ASX with AUM of $1.79 billion as at May 2026. The fund tracks the MSCI Emerging Markets Index — the global benchmark for EM equities — holding around 1,400 companies across China, Taiwan, India, South Korea, Brazil, Saudi Arabia and other developing economies. The 0.69% p.a. management fee matches EMKT at the higher end of the cohort. Compare IEM across the full emerging markets cohort on our emerging markets ETF page.

IEM's portfolio is dominated by the largest EM economies. China typically sits around 25-30% of the portfolio, Taiwan 15-20% (driven heavily by TSMC), India 18-22%, South Korea 8-12% and Brazil 4-6%. Top single-stock holdings include TSMC, Tencent, Samsung Electronics, Alibaba and HDFC Bank — a mix of semiconductor giants, Chinese internet platforms and Indian banks. The market-cap weighting means TSMC alone often makes up 8-10% of the portfolio.

The closest peers on the ASX are VGE (Vanguard FTSE Emerging Markets, 0.48% — meaningfully cheaper), EMKT (VanEck multifactor, 0.69%), BEMG (Betashares Complex ETF, 0.35%) and EMXC (iShares ex-China, 0.25%). The differentiators come down to fee tier and methodology — IEM is the standard cap-weighted MSCI EM benchmark, while peers either ex-China, multi-factor or use FTSE's slightly different country classification (FTSE classifies South Korea as developed, MSCI as EM).

IEM is unhedged for currency, with returns affected by AUD/USD and other EM currency moves. The fund's scale and iShares brand make it the default EM choice for super fund and adviser allocations. Our best Asia, China and emerging markets ETFs guide compares IEM head-to-head with every other EM option on the ASX.