Emerging markets ETF IEMG surged 45% last year, driven by Asian tech giants but with concentration risks.

The iShares Core MSCI Emerging Markets ETF (IEMG) returned 45% in the past year, fueled mainly by large Asian tech companies like TSMC and Samsung. While the fund offers broad exposure to 2,661 stocks across emerging markets, its top holdings are heavily concentrated in a few countries and sectors, especially semiconductors. This concentration means IEMG is less diversified than it appears and carries risks from geopolitical and regulatory changes. Despite strong recent gains, emerging markets have generally underperformed over the past five years, making IEMG suitable as a long-term satellite holding rather than a core portfolio piece.