EEMS vs SPY
Ishares MSCI Emerging Markets Small Cap ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. EEMS offers more diversification with 1470 holdings.
Side-by-Side Comparison
| Metric | EEMS | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.09% | |
| AUM | $357M | $789.1B | |
| Dividend Yield | 2.81% | 1.01% | |
| Holdings | 1,875 | 505 | |
| YTD Return | +10.41% | +13.75% | |
| 1Y Return | +18.89% | +22.91% | |
| 3Y Return (annualized) | +14.06% | +21.67% | |
| 5Y Return (annualized) | +6.76% | +13.32% | |
| Volatility (annualized) | 17.3% | 15.3% | |
| Max Drawdown | -51.7% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Aug 16, 2011 | Jan 22, 1993 |
EEMS vs SPY Performance
Ishares MSCI Emerging Markets Small Cap ETF (EEMS) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year EEMS returned +18.89% while SPY returned +22.91%. Year to date, EEMS is up 10.41% versus a gain of 13.75% for SPY.
Over three years, EEMS compounded at +14.06% per year against +21.67% for SPY; over five years the annualized figures are +6.76% and +13.32% respectively. Across the full 15-year window we track, SPY has the edge at +8.85% annualized vs +3.80%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EEMS has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -51.7% for EEMS and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EEMS charges 0.73% per year while SPY charges 0.09%. On a $10,000 position that is $73 vs $9 annually, a gap of $64 per year that compounds over a long holding period. On income, EEMS currently yields 2.81% against 1.01% for SPY.
Holdings Overlap
EEMS and SPY share 0 holdings out of 1973 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EEMS or SPY?
EEMS has an expense ratio of 0.73% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $64 per year of difference.
Which performed better, EEMS or SPY?
Over the past year EEMS returned +18.89% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (15 years), EEMS annualized +3.80% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, EEMS or SPY?
EEMS has been the more volatile fund at 17.3% annualized versus 15.3% for SPY. Worst drawdown: EEMS -51.7% vs SPY -56.5%.
Should I hold both EEMS and SPY?
EEMS and SPY have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EEMS and SPY?
EEMS and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1973 unique securities.
Which pays a higher dividend, EEMS or SPY?
EEMS yields 2.81% while SPY yields 1.01%, so EEMS currently pays the higher dividend yield.
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