iShares Core MSCI Emerging Markets ETF
IEMGIEMG is a broad exchange-traded fund (ETF) that offers exposure to mid- and small-cap companies in emerging markets.
It provides investors with a highly diversified, cost-effective tool for capturing the long-term growth potential of developing economies.
Updated: February 19, 2026, 16:00 EST
Investment Opinion: Should I buy IEMG Today?
Based on a multi-faceted analysis, IEMG presents a compelling case for investors seeking emerging market exposure, though it is not without its risks.
Technical & Valuation Outlook: IEMG exhibits strong bullish momentum, significantly outperforming the market over recent months. While trading near its 52-week high suggests limited immediate upside and an overbought condition, its valuation appears reasonable with a TTM P/E of 17.66, indicating it is not excessively priced relative to earnings.
Fundamental & Risk Considerations: A comprehensive fundamental review is not possible with the data provided, which is a key limitation. The primary risks are inherent to its asset class: exposure to emerging market volatility, currency fluctuations, and economic instability. However, its beta of 0.98 shows volatility in line with the broader market.
Recommendation: BUY
IEMG is a worthwhile consideration for a diversified portfolio, offering a balanced valuation and strong momentum for emerging market access. The technical strength is notable, though investors should be cautious of a potential pullback from current highs. It is best suited for those with a tolerance for the higher volatility associated with developing economies and a long-term investment horizon.
IEMG 12-Month Price Forecast
RockFlow Model Forecast: Three Scenarios for 2026
Based on a comprehensive analysis, here is a 12-month outlook for IEMG (iShares Core MSCI Emerging Markets ETF):
12-Month Outlook for IEMG
The outlook for IEMG is moderately positive, driven by a weakening US dollar and attractive relative valuations compared to developed markets, which should attract capital flows. Key catalysts include potential interest rate cuts by major developed market central banks and stronger-than-expected economic growth in key holdings like India and Taiwan. The primary risks remain significant, namely geopolitical tensions, currency volatility, and economic fragility in large index components like China. Given the absence of a specific analyst target, a reasonable 12-month price target range is $78 - $85, reflecting the potential for gains tempered by the inherent volatility of the asset class. This outlook assumes IEMG is best for investors with a long-term horizon and a higher risk tolerance.
Wall Street Consensus
Most Wall Street analysts are optimistic about iShares Core MSCI Emerging Markets ETF's 12-month outlook, with consensus target around $74.93, indicating expected upside potential.
Bulls vs Bears: IEMG Investment Factors
Overall, IEMG has investment potential but also faces challenges. Here are key factors to weigh before investing.
Bullish
- Strong ETF inflows: Emerging markets ETFs are seeing a resurgence of institutional investment.
- Large asset base and high liquidity: IEMG commands a larger asset base than rivals like SCHE.
- Diversified, low-cost exposure: IEMG offers diversified, low-fee access to over 2000 emerging market companies.
- Growth potential in emerging markets: Fast-growing technology stocks in Asia provide strong growth tailwinds.
Bearish
- Higher volatility: Emerging markets investments are subject to higher price volatility.
- Currency risk: Investors face potential losses from foreign currency fluctuations.
- Sensitive to institutional models: Price movements can trigger tactical selling from large institutions.
- Economic and political instability: Underlying emerging markets carry inherent economic and political risks.
IEMG Technical Analysis
IEMG has demonstrated strong absolute and relative performance with a 9.04% gain over three months that notably outperforms the market. The ETF approaches its 52-week high, suggesting sustained bullish momentum over the past year.
Short-term performance has been robust, with nearly a 5% gain in one month supporting the stronger three-month uptrend. This positive momentum is confirmed by significant outperformance of 9.06% versus the market over the recent quarter.
Currently trading near the upper boundary of its 52-week range at approximately 98% of the high, IEMG appears overbought technically. The proximity to the $75.89 peak indicates limited immediate upside potential despite the strong bullish trend.
| Period | IEMG Return | S&P 500 |
|---|---|---|
| 1m | +6.5% | +1.0% |
| 3m | +10.6% | +1.9% |
| 6m | +20.8% | +6.5% |
| 1y | +34.5% | +12.1% |
| ytd | +8.6% | +0.2% |
IEMG Fundamental Analysis
Based on the information provided, a fundamental analysis cannot be conducted as no financial data is available for IEMG.
Without access to recent quarterly reports, metrics for revenue growth or profitability trends cannot be assessed. Similarly, an analysis of financial health is impossible without data on debt levels or cash flow statements.
The lack of available financial ratios, such as Return on Equity (ROE) or asset turnover, prevents any meaningful evaluation of operational efficiency. A comprehensive assessment requires access to the underlying financial statements.
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Level: IEMG's TTM PE ratio of 17.66 suggests a moderate valuation level for this emerging markets ETF. While the absence of a forward PE and PEG ratio limits growth-adjusted analysis, the current multiple reflects a balanced expectation for earnings relative to broader market indices, neither appearing significantly overvalued nor deeply undervalued based on this standalone metric.
Peer Comparison: A direct peer comparison cannot be conducted as industry average data is unavailable for this ETF. The valuation assessment therefore remains based solely on IEMG's absolute metrics without the context of comparable emerging market or international equity fund valuations, which would normally provide critical relative pricing perspective.
Investment Risk Disclosure
Volatility Risk: IEMG's beta of 0.98 aligns it closely with broad market movements, suggesting moderate volatility risk similar to the overall market. The 1-year maximum drawdown of -14.66% demonstrates a capacity for notable peak-to-trough declines, indicating investors should be prepared for periods of significant pullback in line with global equity volatility.
Other Risks: The absence of significant short interest reduces immediate pressure from coordinated bearish bets, but this does not eliminate fundamental risks. Primary risks stem from exposure to emerging market volatility, including currency fluctuations and regional economic instability, with typical ETF liquidity being sufficient for most retail investors.
FAQs
Bullish for long-term investors seeking emerging market exposure. IEMG offers strong momentum, a diversified and low-cost structure backed by significant institutional inflows, and exposure to high-growth potential in emerging markets. However, it carries higher volatility and currency risk, making it suitable for investors with a long-term horizon who can tolerate these inherent uncertainties.
Based on the limited valuation metrics provided, IEMG appears fairly valued relative to most broad market benchmarks. The PE ratio of 17.66 is slightly lower than the broader market average (around 19-20), suggesting moderate valuation expectation for emerging markets. The PB ratio of 1.16 is reasonable for an emerging markets ETF, particularly given the typical premium for growth exposure in these markets. Valuation appears appropriate given the moderate earnings multiple balances emerging market growth potential with associated volatility.
Based on the provided information, here are the key risks of holding IEMG, ordered by importance.
1. Fundamental Risk: The inability to perform a fundamental analysis on the ETF's underlying holdings creates a significant blind spot regarding the financial health and operational efficiency of the constituent companies. 2. Market/Technical Risk: Trading near its 52-week high suggests the ETF is overbought, indicating a heightened risk of a price correction and limited immediate upside potential. 3. Geopolitical/Economic Risk: Direct exposure to emerging markets subjects the investment to inherent volatility from regional economic instability and adverse currency fluctuations.
Based on the provided outlook and the inherent volatility of emerging markets, here is a forecast for IEMG through 2026.
A reasonable base-case target price range for 2026 is $85 - $95, with a bull-case scenario potentially reaching $100 - $110, contingent on a supportive macroeconomic environment. Key growth drivers include a sustained weakening of the US dollar, stronger economic performance in key constituents like India and Taiwan outpacing China's challenges, and ongoing global diversification trends. The primary assumptions are that global inflation continues to moderate, allowing for accommodative monetary policy, and that geopolitical tensions do not escalate significantly. It is crucial to note that this forecast carries high uncertainty, as emerging markets are highly sensitive to currency fluctuations, geopolitical events, and shifts in global risk appetite, making any long-term prediction speculative.