What is the expense ratio of IEMG vs LQD?

IEMG has an expense ratio of 0.09%, while LQD has an expense ratio of 0.14%.

IEMG vs LQD

iShares Core MSCI Emerging Markets ETF vs iShares iBoxx $ Investment Grade Corporate Bond ETF

Last updated: 2026-04-02

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

LQD iShares

iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is an exchange-traded fund issued by iShares that provides exposure to investment-grade U.S. corporate bonds. It charges a low expense ratio of 0.14%. The fund offers a high dividend yield of 4.53%. Launched in 2002, the fund has a 24-year track record.

AUM: $29.2B ER: 0.14% Yield: 4.53% Since: Jul 22, 2002

Quick Verdict

IEMG has a slightly lower expense ratio (0.09% vs 0.14%), saving about $99 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 LQD for its higher yield (4.5% vs 2.6%).

Key Metrics

Metric	IEMG	LQD
Expense Ratio	0.09%	0.14%
Dividend Yield	2.6%	4.5%
Fund Family	iShares	iShares
Category	Emerging Markets	US Investment Grade Corporate

Performance Chart

Indexed to 100 at start (5-year comparison)

IEMG +7.7%

LQD -16.4%

Performance Comparison

Period	IEMG	LQD	Difference
1 Month	-6.83%	-2.04%	-4.79%
3 Months	+1.86%	-1.36%	+3.22%
6 Months	+5.01%	-2.59%	+7.60%
YTD	+1.86%	-1.36%	+3.22%
1 Year	+29.64%	+0.00%	+29.64%
3 Years	+43.63%	-1.16%	+44.79%
5 Years	+7.71%	-16.40%	+24.11%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment	Period	IEMG Fees	LQD Fees	You Save
$10.000	10 years	$179	$278	$99
$10.000	20 years	$771	$1.194	$423
$10.000	30 years	$2.486	$3.841	$1.355
$50.000	10 years	$896	$1.391	$495
$50.000	30 years	$12.428	$19.203	$6.775
$100.000	30 years	$24.855	$38.406	$13.551

Risk Metrics

Based on 5 years of daily returns

Metric	IEMG	LQD
Annualized Volatility	18.1%	8.7%
Max Drawdown	-38.5%	-27.9%
Sharpe Ratio	-0.08	-0.89

Dividend Comparison

Metric	IEMG	LQD
Annual Dividend (per share)	$1.85	$4.92
Dividend Yield	2.63%	4.53%
Distribution Frequency	Semi-Annual or Annual	Monthly

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 IEMG 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 LQD if...

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

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