EEM ETF — Holdings & Analysis

The iShares MSCI Emerging Markets ETF (EEM) offers investors broad exposure to large and medium-sized companies within emerging market economies, managing a significant $31.76 billion in assets under management as of 2026-09-07. With an expense ratio of 0.72%, the fund aims to replicate the performance of an index focusing on these developing markets. Its portfolio is notably concentrated in the Technology sector and specific East Asian countries, providing a distinct investment profile.

This exchange-traded fund, the iShares MSCI Emerging Markets ETF, endeavors to replicate the performance of an index that includes large and medium-sized company stocks within emerging markets.

The iShares MSCI Emerging Markets ETF (EEM) is designed to provide investors with exposure to a diversified portfolio of large and medium-sized company stocks across various emerging market countries. As a passively managed fund, EEM endeavors to replicate the performance of a specific index that identifies and includes these companies. This strategy means the fund's holdings and their weights are determined by the index methodology, rather than active management decisions. Investors seeking broad, market-cap-weighted exposure to the growth potential of developing economies, particularly those with significant technology and financial sectors, may find EEM relevant for their portfolios. The fund's substantial holdings count of 1188 companies aims to capture a wide segment of the emerging market landscape, though its top allocations reveal a more concentrated exposure. For instance, the fund's top holding, TAIWAN SEMICONDUCTOR MANUFACTURING, accounts for 15.07% of the portfolio, followed by SAMSUNG ELECTRONICS LTD at 7.00% and SK HYNIX at 5.28%. Geographically, the fund has a significant tilt towards Taiwan (27.5%), Korea (20.6%), and China (18.3%). Sectorally, Technology dominates with 42.1% of the allocation, followed by Financial Services at 19.0%, indicating a strong emphasis on these growth-oriented and foundational sectors within emerging markets.

Investing in the iShares MSCI Emerging Markets ETF (EEM) involves several specific risks that investors may want to research. The fund exhibits significant concentration risk, with its top holding, TAIWAN SEMICONDUCTOR MANUFACTURING, comprising 15.07% of the total portfolio. The top three holdings collectively represent 27.35% of the fund, making EEM's performance highly sensitive to the individual performance of these few companies. Sectorally, EEM is heavily weighted towards Technology, which accounts for 42.1% of its assets. This substantial allocation means the fund's returns are significantly influenced by the performance and volatility of the global technology sector. Geographically, the fund has considerable exposure to Taiwan (27.5%), Korea (20.6%), and China (18.3%), subjecting it to specific economic, political, and regulatory risks inherent to these regions. Furthermore, EEM's 3-year Beta of 1.03 indicates it has historically been slightly more volatile than the broader market. The expense ratio of 0.72% represents a recurring cost that can impact long-term net returns, particularly when compared to lower-cost alternatives or broad market averages. Past performance does not guarantee future results.

0.72%

1.76%