My brother-in-law, Dale, is convinced he can time the market. Dale also believes he can communicate with houseplants. So, when he started raving about emerging market ETFs, I braced myself. It’s not that I’m against investing, it’s just that Dale’s pronouncements usually coincide with some spectacular financial misstep. This time, it was the iShares Core MSCI Emerging Markets ETF (IEMG +2.50%) versus the State Street SPDR Portfolio MSCI Global Stock Market ETF (SPGM +2.16%). He’d printed out a spreadsheet, naturally, and was attempting to explain beta coefficients while simultaneously microwaving a hot dog. The whole scene felt… precarious.
I’ve been poking around these two myself, mostly because I’m tired of hearing Dale’s smug pronouncements. Both are cheap – a 0.09% expense ratio, which feels almost offensively reasonable in this economy. It’s like they’re daring you to find a reason to complain. IEMG, though, throws a little extra dividend your way (2.75% versus SPGM’s 1.89%). Not enough to retire on, but enough to maybe buy a slightly nicer brand of paper towels. Dale, of course, sees it as a sign of imminent riches.
Here’s the thing. IEMG is all in on emerging markets. It’s a bit of a gambler’s ETF. High potential, sure, but also the kind of thing that keeps you up at night wondering if your money is currently being held hostage by a rogue political faction. SPGM, on the other hand, is the sensible shoe of the ETF world. It spreads your money around, developed and emerging, like a responsible adult. It’s not exciting, but it’s also less likely to trigger a panic attack.
| Metric | SPGM | IEMG |
|---|---|---|
| Issuer | SPDR | iShares |
| Expense ratio | 0.09% | 0.09% |
| 1-yr return (as of Feb. 3, 2026) | 21.83% | 38.07% |
| Dividend yield | 1.89% | 2.75% |
| Beta (5Y monthly) | 1.02 | 0.96 |
| AUM | $1.3 billion | $138.8 billion |
The numbers tell a story, of course. IEMG has been the better performer recently, but it’s also taken a bigger hit when things go south (a max drawdown of -37.11% versus SPGM’s -25.92%). Over five years, SPGM has been the more consistent performer, which, frankly, is reassuring. I’m not looking for fireworks, I’m looking for something that won’t require me to start stockpiling canned goods.
Inside IEMG, you’ll find a lot of tech and financial services – Taiwan Semiconductor Manufacturing, Samsung Electronics, Tencent. Big names, but also companies that feel… distant. SPGM is a bit more familiar – Nvidia, Apple, Microsoft. The companies I complain about to customer service representatives. The ones I feel vaguely entitled to a discount from.
IEMG holds 2,672 positions, while SPGM has nearly 3,000. It’s a lot of companies. It makes me think about all the people involved, all the decisions being made, all the tiny, incremental shifts in the global economy. It’s overwhelming. I’d rather just buy a slightly nicer brand of paper towels.
If you’re looking for a thrill, if you enjoy the feeling of riding a roller coaster while blindfolded, IEMG might be for you. If you prefer a steady, predictable path, SPGM is the way to go. Or, you could just admit that you have no idea what you’re doing and invest in index funds. That’s what I’m leaning towards. It feels… responsible. And frankly, after dealing with Dale, it feels like a victory.
For more guidance on ETF investing, check out the full guide at this link.
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2026-02-08 11:02