iShares MSCI Emerging Markets ETF (EEM): Complete Beginner's Guide
Last updated: March 2026 • BlackRock • Emerging Markets
Expense Ratio
0.68%
AUM
$20.0B
Dividend Yield
2.30%
Inception
2003
Beginner Score
9.5/10
What is iShares MSCI Emerging Markets ETF?
EEM tracks the MSCI Emerging Markets Index, offering exposure to large and mid-cap stocks across over 20 developing countries. As one of the original emerging market ETFs launched in 2003, it pioneered accessible EM investing for everyday investors. While newer and cheaper alternatives like IEMG now exist, EEM remains highly popular due to its enormous options market and deep liquidity.
EEM is managed by BlackRock and has been available since 2003. With $20.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.68%, which means for every $10,000 you invest, you pay approximately $68 per year in management fees.
EEM at a Glance — Key Metrics
| Expense Ratio | 0.68% |
| Total Holdings | 1,200 |
| P/E Ratio | 14.8 |
| Beta | 0.88 |
| Dividend Yield | 2.30% |
| AUM | $20.0B |
| Inception Year | 2003 |
| Issuer | BlackRock |
Top 10 Holdings in EEM
EEM holds 1,200 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Taiwan Semiconductor | TSM | 9.00% |
| 2 | Samsung Electronics | 005930.KS | 4.20% |
| 3 | Tencent Holdings | TCEHY | 3.80% |
| 4 | Alibaba Group | BABA | 2.80% |
| 5 | Reliance Industries | RELIANCE.NS | 2.00% |
| 6 | Infosys | INFY | 1.60% |
| 7 | China Construction Bank | 0939.HK | 1.40% |
| 8 | Meituan | 3690.HK | 1.30% |
| 9 | SK Hynix | 000660.KS | 1.30% |
| 10 | PDD Holdings | PDD | 1.20% |
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EEM Performance History
Here's how EEM has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
1.80%
1 Year
7.00%
3 Year
0.50%
5 Year
3.50%
10 Year
3.50%
Beginner Suitability Score: 9.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
EEM scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 1,200 holdings, and has been available since 2003, giving it a proven track record.
How to Buy EEM — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "EEM" — Use the search bar in your brokerage platform to find iShares MSCI Emerging Markets ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into EEM
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With EEM's expense ratio of 0.68%, a $10,000 investment would lose approximately $5,531 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
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Pros and Cons of EEM
Pros
- ✓Most liquid emerging market ETF with the deepest options market for hedging and income strategies
- ✓Long track record since 2003 provides extensive historical performance data
- ✓Broad exposure to over 1,200 stocks across major developing economies
- ✓Highly recognizable benchmark status makes it the default EM choice for many institutions
Cons
- ✗Expense ratio of 0.68% is very high compared to IEMG at 0.09% for similar exposure
- ✗Excludes small-cap stocks, missing a significant portion of the emerging market opportunity
- ✗High cost significantly drags on long-term compounding returns versus cheaper alternatives
EEM vs Similar ETFs
See how EEM stacks up against similar funds:
Frequently Asked Questions
Is EEM a good ETF for beginners?▾
EEM has a Beginner Suitability Score of 9.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of EEM?▾
EEM has an expense ratio of 0.68%. This means for every $10,000 you invest, you pay approximately $68 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in EEM?▾
You can invest in EEM with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does EEM pay dividends?▾
Yes, EEM pays dividends with a current yield of approximately 2.30%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in EEM?▾
The top holdings in EEM include Taiwan Semiconductor (9.00%), Samsung Electronics (4.20%), Tencent Holdings (3.80%), and more. The fund holds 1,200 total positions, providing broad diversification across many companies.