iShares Core MSCI Emerging Markets ETF (IEMG) Top 25 Holdings

The iShares Core MSCI Emerging Markets ETF (IEMG) provides investors with broad exposure to equities across developing economies, making it one of the most comprehensive and cost-efficient ways to access growth outside the U.S. and other developed markets. The fund is designed to track the MSCI Emerging Markets Investable Market Index, covering large, mid, and small-cap companies. With more than 2,000 holdings, it offers deep diversification that helps mitigate risks tied to individual markets.

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Emerging markets play a critical role in the global economy, driven by favorable demographics, rising middle-class consumption, and technological adoption. While volatility is higher compared to developed markets, long-term investors see these regions as offering superior growth potential. The presence of heavyweight firms like Taiwan Semiconductor Manufacturing Company (TSMC), Tencent, and Alibaba provides IEMG with anchors of stability and leadership in technology and digital platforms.

Year-to-date, IEMG has delivered strong returns of 28%, reflecting optimism in global growth, easing inflation pressures, and investor appetite for value outside the U.S. The fund’s mix of technology, financials, and consumer discretionary leaders ensures exposure to sectors that can thrive as emerging economies expand.

1. Taiwan Semiconductor Manufacturing Co. (2330)

Taiwan Semiconductor (TSMC) is IEMG’s largest holding at 9.64% of the fund. As the world’s dominant semiconductor foundry, TSMC manufactures chips for clients ranging from Apple to NVIDIA, making it a cornerstone of the global tech supply chain. Its advanced process technology, including leadership in 3nm and upcoming 2nm nodes, provides a critical advantage in an industry where scale and capital intensity serve as major barriers to entry.

TSMC’s scale has enabled consistent revenue growth, even through cycles of chip demand volatility. With geopolitical risks tied to Taiwan’s position in the global landscape, TSMC has also expanded overseas, investing billions in fabrication plants in the U.S. and Japan. This diversification effort not only supports global supply chain resilience but also reassures major customers seeking long-term security of supply.

For IEMG investors, TSMC delivers both growth and defensive qualities: it is indispensable to global technology infrastructure and benefits from secular tailwinds in AI, cloud computing, and automotive electronics. Its sheer scale and customer base make it a reliable anchor in the fund.

2. Tencent Holdings (700)

Tencent, at 4.86% of the fund, is China’s leading internet and technology company, with a dominant position in gaming, social media, and digital payments. Its flagship platform WeChat is deeply embedded in Chinese daily life, providing not only messaging but also e-commerce, payments, and advertising functions. The company’s gaming portfolio is another global growth engine, including stakes in Epic Games and Riot Games.

Despite regulatory headwinds in China, Tencent has adapted by diversifying revenue streams and focusing on compliance-driven growth. Its fintech and cloud businesses continue to scale, while advertising revenue benefits from China’s digital transformation. This ability to balance innovation with regulation has allowed Tencent to remain one of the most resilient Chinese technology firms.

For IEMG, Tencent provides exposure to China’s rapidly digitizing economy, while also serving as a long-term play on global entertainment and fintech. Its strong cash generation and vast ecosystem ensure it remains a pivotal contributor to the fund’s performance.

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3. Alibaba Group (9988)

Alibaba, weighted at 3.52%, is one of the largest e-commerce and cloud computing companies in the world. Its platforms, Taobao and Tmall, dominate China’s online retail market, serving hundreds of millions of consumers. Alibaba’s scale and logistics capabilities provide an unmatched competitive moat, driving consistent consumer engagement and high transaction volumes.

In addition to e-commerce, Alibaba Cloud has become a key revenue driver, ranking as the top cloud provider in China and one of the largest globally. This diversification into digital infrastructure ensures Alibaba remains competitive in high-growth technology markets. Recent corporate restructuring efforts aim to streamline operations and unlock shareholder value.

For IEMG investors, Alibaba offers a unique blend of consumer and technology exposure. Its e-commerce dominance provides steady cash flow, while its cloud business positions it for long-term technological relevance. Though subject to regulatory risks, Alibaba remains one of the most influential companies in emerging markets.

What IEMG Really Owns

IEMG’s strength lies in its ability to combine the growth potential of emerging market economies with the stability of global technology leaders. Its top holdings, TSMC, Tencent, and Alibaba, anchor the fund with scale, innovation, and global relevance. These companies ensure that the ETF captures not just regional growth, but also participation in critical industries such as semiconductors, digital platforms, and cloud computing.

The ETF’s diversification across over 2,000 stocks reduces reliance on any single company or economy. For investors seeking long-term growth with broad emerging markets exposure, IEMG provides a cost-efficient, well-rounded option. Its strong year-to-date performance underlines the growing appeal of international diversification as markets shift beyond the U.S.

Key Insights

• YTD Performance: +28% price return, 39.0% CAGR.
• Top Holdings: TSMC (9.64%), Tencent (4.86%), Alibaba (3.52%).
• Sector Leadership: Technology and consumer discretionary drive growth.
• Diversification: Over 2,000 holdings across multiple emerging economies.
• Investor Appeal: Combines growth potential of EM with anchors in global tech leaders.

Why You Should Invest In IEMG

The iShares Core MSCI Emerging Markets ETF is well-positioned as a core holding for investors seeking exposure to the dynamic growth of emerging economies. With its massive breadth of holdings, the fund balances concentrated exposure to tech leaders like TSMC, Tencent, and Alibaba with a wide base of smaller companies spanning multiple sectors and geographies. This creates a unique mix of growth, resilience, and diversification.

While risks such as regulatory crackdowns in China or geopolitical instability remain, the long-term growth story of emerging markets is compelling. Rising middle-class consumption, digital adoption, and infrastructure investment continue to support secular demand trends. For patient investors, these themes offer meaningful upside over time.

As part of a diversified portfolio, IEMG provides balance and international reach, complementing developed market holdings. For investors betting on the next wave of global growth, IEMG delivers a comprehensive and efficient solution.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!