iShares MSCI Emerging Markets ETF (EEM) Top 25 Holdings

The iShares MSCI Emerging Markets ETF (EEM) provides broad exposure to some of the fastest-growing economies across Asia, Latin America, the Middle East, and beyond. It captures large- and mid-cap companies in more than 20 emerging markets, giving investors a way to participate in global growth themes outside the developed world. This ETF is particularly attractive for those seeking long-term diversification with exposure to rapidly expanding technology, finance, and consumer sectors.

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As of 2025, EEM has delivered a strong 28.9% year-to-date return, with an impressive 40.6% CAGR over the measured period. This rally reflects improving economic conditions in emerging markets, a weaker U.S. dollar, and surging demand for semiconductors, digital platforms, and consumer services. Even with geopolitical risks and currency volatility, the structural growth trends in emerging markets have continued to shine through.

EEM’s portfolio is anchored by technology leaders like Taiwan Semiconductor, Tencent, and Alibaba, alongside major banks, energy firms, and industrial champions. This balance gives investors exposure to both high-growth innovation and stable financial infrastructure across emerging economies. By holding EEM, investors gain access to companies that increasingly drive global economic momentum.

1. Taiwan Semiconductor Manufacturing Co. (2330)

Taiwan Semiconductor is EEM’s largest holding, commanding 10.96% of the fund. As the world’s dominant contract chipmaker, TSMC manufactures the advanced semiconductors that power everything from smartphones to artificial intelligence. Its technological lead in extreme ultraviolet (EUV) lithography makes it indispensable to global technology supply chains.

Despite geopolitical concerns related to Taiwan’s position in global affairs, TSMC’s unmatched expertise ensures global companies remain dependent on its output. The company continues to expand capacity both domestically and abroad, reinforcing its global footprint. Its consistent growth trajectory makes it a reliable anchor for EEM investors seeking long-term technology exposure.

For EEM holders, TSMC provides exposure to one of the most critical companies driving global innovation. It not only represents stability and pricing power but also positions the ETF to benefit from megatrends like AI, 5G, and cloud computing.

2. Tencent Holdings Ltd. (700)

Tencent is EEM’s second-largest holding, weighted at 5.59%. It is China’s technology powerhouse, with dominant positions in social media, gaming, fintech, and cloud computing. Its WeChat platform alone integrates messaging, payments, and e-commerce for more than a billion users, embedding Tencent deeply into everyday life.

The company continues to benefit from strong engagement across its platforms, while its online gaming segment generates consistent cash flow. Although Chinese regulatory pressures have created headwinds, Tencent’s ability to innovate and diversify into AI and digital services has kept it ahead of competitors. This adaptability highlights its resilience in one of the world’s most dynamic markets.

For investors, Tencent offers exposure to China’s digital economy and its enormous user base. Within EEM, it brings growth potential that is unmatched in terms of scale and integration across multiple business verticals.

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3. Alibaba Group Holding Ltd. (9988)

Alibaba ranks third at 3.99% of the ETF’s weight. The company is a leader in Chinese e-commerce, with platforms handling trillions in annual transactions. Beyond retail, Alibaba Cloud is a significant player in the global cloud computing market, making it a dual force in both consumer and enterprise growth.

Although Alibaba has faced regulatory scrutiny and heightened competition, it has streamlined operations and emphasized profitability to stabilize growth. Its ability to pivot and adapt ensures it remains central to China’s consumer and tech landscape. The company’s investments in logistics, payments, and international e-commerce also broaden its opportunities beyond domestic markets.

For EEM investors, Alibaba provides a unique combination of retail dominance and cloud infrastructure growth. Its scale, diversification, and continued innovation make it one of the most important contributors to the ETF’s long-term performance.

What EEM Really Owns

EEM’s top three holdings, TSMC, Tencent, and Alibaba, highlight the ETF’s technology-driven growth profile. Together, these companies account for more than 20% of the fund, giving investors direct exposure to Asia’s most influential innovators. Their global scale and integration ensure they remain key players in shaping both regional and international economic growth.

Beyond its top positions, EEM offers exposure to a broad range of companies across financials, energy, and consumer sectors. From HDFC Bank and Reliance Industries to BYD and Infosys, the ETF captures the diversity and dynamism of emerging economies. This breadth helps balance the volatility of tech-driven growth with the stability of established institutions.

Key Insights

• Tech anchor: TSMC, Tencent, and Alibaba account for over 20% of EEM, underscoring the importance of Asia’s digital and semiconductor ecosystems.
• Strong performance: A 28.9% YTD return reflects investor confidence in emerging economies and technology-driven growth.
• Diversification: Financial institutions, energy producers, and consumer companies complement the tech-heavy top holdings.
• Growth potential: Rising incomes, urbanization, and digitalization across emerging markets continue to drive long-term demand.

Why You Should Invest In EEM

The iShares MSCI Emerging Markets ETF (EEM) has delivered a 28.9% YTD return, underscoring the potential of emerging economies even amid global uncertainty. Its portfolio showcases the leaders in technology, finance, and consumer sectors that drive growth outside developed markets.

Emerging markets remain inherently volatile, with risks tied to politics, regulation, and currency swings. However, the structural tailwinds of rising middle-class consumption, technology adoption, and urbanization make them attractive long-term investments. EEM captures these themes in a diversified and accessible format.

For investors seeking growth beyond the U.S. and Europe, EEM provides one of the most direct and cost-effective vehicles. Its concentration in Asia’s leading innovators and inclusion of diverse sectors make it a powerful tool for those aiming to balance growth potential with diversification.

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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!