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<h2>Key Points</h2><ul><li>EEM has delivered a higher 1-year return but comes with a significantly higher expense ratio than SPGM</li><li>EEM’s portfolio is heavily tilted toward technology and emerging Asia, while SPGM spreads exposure more broadly across global developed and emerging markets</li><li>SPGM has shown milder drawdowns and lower volatility, which may appeal to risk-averse investors</li><li>10 stocks we like better than iShares - iShares Msci Emerging Markets ETF ›</li></ul><p>The <strong>State Street SPDR Portfolio MSCI Global Stock Market ETF</strong><span class="ticker">(NYSEMKT:SPGM)</span> and the <strong>iShares MSCI Emerging Markets ETF</strong><span class="ticker">(NYSEMKT:EEM)</span> 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.</p><p>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.</p><h2 id="snapshot-cost-amp-size">Snapshot (cost &amp; size)</h2><section><table><tbody><tr><th>Metric</th><th>SPGM</th><th>EEM</th></tr><tr><td>Issuer</td><td>SPDR</td><td>IShares</td></tr><tr><td>Expense ratio</td><td>0.09%</td><td>0.72%</td></tr><tr><td>1-yr return (as of 2026-03-24)</td><td>17.6%</td><td>26.2%</td></tr><tr><td>Dividend yield</td><td>1.9%</td><td>2.2%</td></tr><tr><td>Beta</td><td>0.93</td><td>0.64</td></tr><tr><td>AUM</td><td>$1.4 billion</td><td>$25.2 billion</td></tr></tbody></table></section><p><em>Beta measures price volatility relative to the S&amp;P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.</em></p><p>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.</p><h2 id="performance-amp-risk-comparison">Performance &amp; risk comparison</h2><section><table><tbody><tr><th>Metric</th><th>SPGM</th><th>EEM</th></tr><tr><td>Max drawdown (5 y)</td><td>(25.92%)</td><td>(37.82%)</td></tr><tr><td>Growth of $1,000 over 5 years</td><td>$1,464</td><td>$1,089</td></tr></tbody></table></section><h2 id="whatx27s-inside">What's inside</h2><p>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 <strong>Taiwan Semiconductor Manufacturing</strong><span class="ticker">(NYSE:TSM)</span> at 12.51%, <strong>Samsung Electronics Ltd</strong><span class="ticker">(FRA:SSU)</span> at 5.24%, and <strong>Tencent Holdings Ltd</strong><span class="ticker">(OTC:TCEHY)</span> 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.</p><p>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—<strong>Nvidia Corp</strong> <span class="ticker">(NASDAQ:NVDA)</span>, <strong>Apple Inc</strong> <span class="ticker">(NASDAQ:AAPL)</span>, and <strong>Microsoft Corp</strong> <span class="ticker">(NASDAQ:MSFT)</span>—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.</p><p>For more guidance on ETF investing, check out the full guide at this link.</p><h2 id="what-this-means-for-investors">What this means for investors</h2><p>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.</p><p>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 <em>global </em>fund, rather than a strictly emerging markets fund. This makes the fund more stable, as evidenced by SPGM’s lower maximum drawdown than EEM.</p><p>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%.</p><p>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.</p><p></p><h2>Should you buy stock in iShares - iShares Msci Emerging Markets ETF right now?</h2>
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<p style="color: #767676; text-align: left"><em>*Stock Advisor returns as of March 27, 2026. </em></p><p><em>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.</em></p>
<p>The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.</p>
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SPEM

SPGM

IEMG

<p>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.</p>

EEM vs. SPGM: EEM Delivers Higher Returns but Costs More Than SPGM