IEMG Holds More Assets and Stocks Than SCHE
The Motley Fool
by newsfeedback@fool.com (John Ballard)February 13, 2026
AI-Generated Deep Dive Summary
The iShares Core MSCI Emerging Markets ETF (IEMG) and the Schwab Emerging Markets Equity ETF (SCHE) both offer broad exposure to emerging market equities but differ significantly in terms of scale, structure, and costs. While IEMG boasts a larger asset base, higher trading volume, and a slightly elevated expense ratio, SCHE provides a more budget-friendly option with comparable diversification across sectors like technology, financials, and consumer goods. These nuances are critical for investors evaluating which ETF aligns best with their financial goals and risk tolerance.
IEMG’s dominance in assets under management and daily trading volume underscores its position as the go-to choice for institutional and high-volume traders. This scale often translates to tighter bid-ask spreads and greater liquidity, making it a preferred option for those seeking stability and ease of trading. On the other hand, SCHE’s lower expense ratio (0.14% compared to IEMG’s 0.15%) could appeal to cost-conscious investors without compromising on diversification. Both ETFs track similar indices but with slight variations in holdings that could impact returns and risk profiles.
The beta measurements and one-year returns of both ETFs highlight their respective volatilities relative to the S&P 500. While IEMG’s modestly higher expense ratio may not significantly affect long-term returns for most investors, it’s worth considering alongside other factors like fees, liquidity needs, and market conditions. For those prioritizing lower costs without sacrificing exposure to a diverse range of emerging markets, SCHE emerges as a strong contender, particularly for retail investors seeking an affordable yet effective way to tap into global growth opportunities.
Ultimately, the choice between IEMG and SCHE hinges on individual investment objectives. While IEMG’s scale offers advantages in liquidity and market impact, SCHE’s lower fees make it a compelling alternative for many investors. Both ETFs provide robust exposure to the same dynamic and rapidly evolving markets, but their structural differences ensure that one may be better suited to specific investor needs than the other.
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Originally published on The Motley Fool on 2/13/2026