ETF Versus

EEM vs IAU

iShares MSCI Emerging Markets ETF vs iShares Gold Trust

Last updated: 2026-04-02

EEM iShares

iShares MSCI Emerging Markets ETF (EEM) is an exchange-traded fund issued by iShares that provides exposure to stocks in emerging market economies with higher growth potential. It charges a high expense ratio of 0.72%. The fund offers a moderate dividend yield of 2.12%. Launched in 2003, the fund has a 23-year track record.

AUM: $24.5B ER: 0.72% Yield: 2.12% Since: Apr 7, 2003
IAU iShares

iShares Gold Trust (IAU) is an exchange-traded fund issued by iShares that provides exposure to gold securities. It charges a moderate expense ratio of 0.25%. Launched in 2005, the fund has a 21-year track record.

AUM: $68.7B ER: 0.25% Yield: 0.00% Since: Jan 21, 2005

Quick Verdict

IAU is significantly cheaper at 0.25% vs 0.72% expense ratio, saving you approximately $902 per $10,000 invested over 10 years. Over the past year, IAU has significantly outperformed with a 52.4% return vs 30.5%. Income investors may prefer EEM for its higher yield (2.1% vs 0.0%).

Key Metrics

Metric EEM IAU
Expense Ratio 0.72% 0.25%
Dividend Yield 2.1% 0.0%
Fund Family iShares iShares
Category Emerging Markets Gold

Performance Chart

Indexed to 100 at start (5-year comparison)

60 108 156 204 252 300 2021-04 2022-06 2023-09 2024-12 2026-04
EEM +5.8%
IAU +172.6%

Performance Comparison

Period EEM IAU Difference
1 Month -6.94% -10.66% +3.72%
3 Months +1.76% +9.96% -8.20%
6 Months +5.53% +22.48% -16.95%
YTD +1.76% +9.96% -8.20%
1 Year +30.54% +52.36% -21.82%
3 Years +44.74% +138.19% -93.45%
5 Years +5.84% +172.58% -166.74%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period EEM Fees IAU Fees You Save
$10.000 10 years $1.397 $495 $902
$10.000 20 years $5.836 $2.111 $3.725
$10.000 30 years $18.296 $6.758 $11.537
$50.000 10 years $6.984 $2.473 $4.511
$50.000 30 years $91.478 $33.792 $57.686
$100.000 30 years $182.957 $67.584 $115.373

Risk Metrics

Based on 5 years of daily returns

Metric EEM IAU
Annualized Volatility 18.6% 17.7%
Max Drawdown -39.5% -20.9%
Sharpe Ratio -0.09 0.97

Dividend Comparison

Metric EEM IAU
Annual Dividend (per share) $1.22 $0.00
Dividend Yield 2.12% 0.00%
Distribution Frequency Semi-Annual or Annual None

Top Holdings

EEM Top Holdings

NameWeight
Taiwan Semiconductor Manufacturing Company Limited!tpe/233013.38%
Samsung Electronics Co., Ltd.!krx/0059305.37%
Tencent Holdings Limited!hkg/07003.82%
SK hynix Inc.!krx/0006603.17%
Alibaba Group Holding Limited!hkg/99882.55%
China Construction Bank Corporation!hkg/09390.95%
Delta Electronics, Inc.!tpe/23080.88%
HDFC Bank Limited!nse/HDFCBANK0.87%
Reliance Industries Limited!nse/RELIANCE0.82%
Hon Hai Precision Industry Co., Ltd.!tpe/23170.75%

Which One Should You Choose?

Choose IAU if...

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

Choose IAU if...

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

Choose EEM if...

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

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