--- title: "EEM vs. SPGM: EEM Delivers Higher Returns but Costs More Than SPGM" type: "News" locale: "en" url: "https://longbridge.com/en/news/280805435.md" description: "The comparison between the iShares MSCI Emerging Markets ETF (EEM) and the State Street SPDR Portfolio MSCI Global Stock Market ETF (SPGM) reveals that EEM offers higher returns (26.2% vs. 17.6%) but at a significantly higher expense ratio (0.72% vs. 0.09%). EEM focuses on emerging markets, particularly technology, while SPGM provides broader global exposure, resulting in lower volatility and drawdowns. Investors seeking lower costs may prefer SPGM, while those willing to accept higher risk for potentially greater returns might opt for EEM. Both funds serve as valuable components in investment portfolios." datetime: "2026-03-27T14:00:20.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280805435.md) - [en](https://longbridge.com/en/news/280805435.md) - [zh-HK](https://longbridge.com/zh-HK/news/280805435.md) --- # EEM vs. SPGM: EEM Delivers Higher Returns but Costs More Than SPGM ## Key Points - EEM has delivered a higher 1-year return but comes with a significantly higher expense ratio than SPGM - EEM’s portfolio is heavily tilted toward technology and emerging Asia, while SPGM spreads exposure more broadly across global developed and emerging markets - SPGM has shown milder drawdowns and lower volatility, which may appeal to risk-averse investors - 10 stocks we like better than iShares - iShares Msci Emerging Markets ETF › The **State Street SPDR Portfolio MSCI Global Stock Market ETF**(NYSEMKT:SPGM) and the **iShares MSCI Emerging Markets ETF**(NYSEMKT:EEM) differ most in cost, risk profile, and geographic focus: EEM charges much higher fees and concentrating on emerging markets, while SPGM offers broader global diversification at a lower expense. SPGM aims to provide low-cost, diversified exposure to both developed and emerging global equities, making it a core holding for investors seeking worldwide stock market coverage. In contrast, EEM focuses specifically on large- and mid-cap stocks within emerging economies, offering a targeted way to access faster-growing markets but with a narrower, more volatile profile. This comparison highlights each fund’s cost, recent performance, risk, and portfolio composition to help clarify which approach may better fit different objectives. ## Snapshot (cost & size) Metric SPGM EEM Issuer SPDR IShares Expense ratio 0.09% 0.72% 1-yr return (as of 2026-03-24) 17.6% 26.2% Dividend yield 1.9% 2.2% Beta 0.93 0.64 AUM $1.4 billion $25.2 billion _Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months._ SPGM stands out for its far lower expense ratio, making it the more affordable option for cost-conscious investors, while EEM charges a much higher fee. EEM offers a slightly higher dividend yield, which may appeal to those seeking a modestly larger income stream from emerging markets exposure. ## Performance & risk comparison Metric SPGM EEM Max drawdown (5 y) (25.92%) (37.82%) Growth of $1,000 over 5 years $1,464 $1,089 ## What's inside EEM tracks an emerging markets index and currently holds 1,223 stocks, with a pronounced tilt toward technology (34%) and financial services (19%). Its top holdings are **Taiwan Semiconductor Manufacturing**(NYSE:TSM) at 12.51%, **Samsung Electronics Ltd**(FRA:SSU) at 5.24%, and **Tencent Holdings Ltd**(OTC:TCEHY) at 3.67%. With more than 23 years of history, EEM offers access to some of the largest companies in Asia and Latin America, but its concentration in a handful of tech giants can lead to higher volatility and deeper drawdowns during market stress. SPGM, by contrast, provides exposure to nearly 3,000 companies across developed and emerging markets, with technology (25%), financial services (17%), and industrials (14%) as its largest sectors. Its top holdings—**Nvidia Corp** (NASDAQ:NVDA), **Apple Inc** (NASDAQ:AAPL), and **Microsoft Corp** (NASDAQ:MSFT)—are all U.S.-based technology leaders, providing a different geographic and sector balance than EEM. SPGM’s broad diversification helps reduce country and single-stock risk, leading to a smoother ride for investors. For more guidance on ETF investing, check out the full guide at this link. ## What this means for investors Global and emerging markets exchange-traded funds (ETFs) are a useful component for many investment portfolios. Moreover, State Street SPDR Portfolio MSCI Global Stock Market ETF (SPGM) and the iShares MSCI Emerging Markets ETF (EEM) are worth considering. Here’s how they stack up against one another. SPGM has the edge in a few areas. First, SPGM has a big advantage in fees. The fund charges only 0.09%. EEM, on the other hand, charges 0.72%. What’s more, SPGM is a _global_ fund, rather than a strictly emerging markets fund. This makes the fund more stable, as evidenced by SPGM’s lower maximum drawdown than EEM. EEM has some advantages, too. It has a higher dividend yield of 2.2% than SPGM’s 1.9%. EEM also has a much larger AUM ($25.2 billion vs. $1.4 billion). Finally, EEM has performed better over the last year. EEM has generated a return of 26.2% over the last year, while SPGM has advanced by 17.6%. In summary, SPGM has a key edge on fees, while EEM has performed better over the last year and has a higher dividend yield. Consequently, cost-conscious investors may prefer SPGM, while those willing to accept higher risk may opt for EEM. ## Should you buy stock in iShares - iShares Msci Emerging Markets ETF right now? Before you buy stock in iShares - iShares Msci Emerging Markets ETF, consider this: The _Motley Fool Stock Advisor_ analyst team just identified what they believe are the **10 best stocks** for investors to buy now… and iShares - iShares Msci Emerging Markets ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when **Netflix** made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, **you’d have $503,268**!\* Or when **Nvidia** made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, **you’d have $1,049,793**!\* Now, it’s worth noting _Stock Advisor’s_ total average return is 898% — a market-crushing outperformance compared to 182% for the S&P 500. **Don't miss the latest top 10 list, available with _Stock Advisor_, and join an investing community built by individual investors for individual investors.** See the 10 stocks » _\*Stock Advisor returns as of March 27, 2026._ _Jake Lerch has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Tencent and is short shares of Apple. The Motley Fool has a disclosure policy._ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. ### Related Stocks - [SPEM.US](https://longbridge.com/en/quote/SPEM.US.md) - [SPGM.US](https://longbridge.com/en/quote/SPGM.US.md) - [EEM.US](https://longbridge.com/en/quote/EEM.US.md) - [IEMG.US](https://longbridge.com/en/quote/IEMG.US.md) ## Related News & Research - [Peter Brandt Spotlights This ETF With Exposure To Taiwan Semiconductor, Alibaba And SK Hynix, Says It Is 'Headed Much Higher'](https://longbridge.com/en/news/285900152.md) - [IXUS vs. IEMG: One International ETF Covers the World, the Other Focuses on Its Fastest-Growing Corner](https://longbridge.com/en/news/285841614.md) - [National Vision Q1 revenue rises 6.6% on higher average ticket](https://longbridge.com/en/news/286238732.md) - [VXUS vs. IEMG: Which International ETF Is the Better Buy?](https://longbridge.com/en/news/284043329.md) - [Emerging market investors shrug off Iran war shock, IIF data shows](https://longbridge.com/en/news/285956899.md)