What is the expense ratio of AGG vs IEMG?

AGG has an expense ratio of 0.03%, while IEMG has an expense ratio of 0.09%.

AGG vs IEMG

iShares Core US Aggregate Bond ETF vs iShares Core MSCI Emerging Markets ETF

Last updated: 2026-04-02

AGG iShares

iShares Core US Aggregate Bond ETF (AGG) is an exchange-traded fund issued by iShares that provides exposure to the broad U.S. investment-grade bond market. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.94%. Launched in 2003, the fund has a 23-year track record.

AUM: $137.9B ER: 0.03% Yield: 3.94% Since: Sep 22, 2003

IEMG iShares

iShares Core MSCI Emerging Markets ETF (IEMG) is an exchange-traded fund issued by iShares that provides exposure to stocks in emerging market economies with higher growth potential. It charges a low expense ratio of 0.09%. The fund offers an attractive dividend yield of 2.63%. Launched in 2012, the fund has a 14-year track record.

AUM: $132.2B ER: 0.09% Yield: 2.63% Since: Oct 18, 2012

Quick Verdict

AGG has a slightly lower expense ratio (0.03% vs 0.09%), saving about $119 per $10,000 over 10 years. Over the past year, IEMG has significantly outperformed with a 29.6% return vs 0.0%. Income investors may prefer AGG for its higher yield (3.9% vs 2.6%).

Key Metrics

Metric	AGG	IEMG
Expense Ratio	0.03%	0.09%
Dividend Yield	3.9%	2.6%
Fund Family	iShares	iShares
Category	US Aggregate Bond	Emerging Markets

Performance Chart

Indexed to 100 at start (5-year comparison)

AGG -13.0%

IEMG +7.7%

Performance Comparison

Period	AGG	IEMG	Difference
1 Month	-1.67%	-6.83%	+5.16%
3 Months	-0.85%	+1.86%	-2.71%
6 Months	-1.18%	+5.01%	-6.19%
YTD	-0.85%	+1.86%	-2.71%
1 Year	+0.04%	+29.64%	-29.60%
3 Years	-0.82%	+43.63%	-44.45%
5 Years	-13.01%	+7.71%	-20.72%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment	Period	AGG Fees	IEMG Fees	You Save
$10.000	10 years	$60	$179	$119
$10.000	20 years	$258	$771	$512
$10.000	30 years	$835	$2.486	$1.650
$50.000	10 years	$299	$896	$597
$50.000	30 years	$4.176	$12.428	$8.252
$100.000	30 years	$8.352	$24.855	$16.503

Risk Metrics

Based on 5 years of daily returns

Metric	AGG	IEMG
Annualized Volatility	6.1%	18.1%
Max Drawdown	-21.4%	-38.5%
Sharpe Ratio	-1.17	-0.08

Dividend Comparison

Metric	AGG	IEMG
Annual Dividend (per share)	$3.90	$1.85
Dividend Yield	3.94%	2.63%
Distribution Frequency	Monthly	Semi-Annual or Annual

Top Holdings

IEMG Top Holdings

Name	Weight
Taiwan Semiconductor Manufacturing Company Limited!tpe/2330	11.60%
Samsung Electronics Co., Ltd.!krx/005930	4.66%
Tencent Holdings Limited!hkg/0700	3.32%
SK hynix Inc.!krx/000660	2.75%
Alibaba Group Holding Limited!hkg/9988	2.22%
China Construction Bank Corporation!hkg/0939	0.82%
Delta Electronics, Inc.!tpe/2308	0.76%
HDFC Bank Limited!nse/HDFCBANK	0.75%
Reliance Industries Limited!nse/RELIANCE	0.71%
Hon Hai Precision Industry Co., Ltd.!tpe/2317	0.65%

Which One Should You Choose?

Choose AGG if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose IEMG if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose AGG if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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