IEMG offers outstanding coverage of emerging markets. As part of the line of 'Core' ETFs from BlackRock, it offers very similar but more comprehensive exposure than its sister fund EEM by including smaller firms in the portfolio. IEMG follows the same MSCI index as our benchmark and so it counts South Korea as an emerging market, in contrast to FTSE-based funds such as VWO. The fund does not fully replicate the underlying index, yet uses a representative sampling. A strategy commonly used in order to reach or exclude securities for preferred investing or trading purposes. Over time the fund manager expects tracking err to be less than 5%. Also a common practice worth noting, the fund uses a subsidiary located in the Republic of Mauritius to invest portion of the portfolio in India.
