# iShares ETFs Outperform S&P 500

**Published:** 2026-07-06T00:50:13.109Z  
**Topic:** S P 500  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/696fa2ca-79ae-4479-bcc9-873ee71a229d

3 iShares ETFs beat S&P 500 by 30 points, with EMXC up 39%, FRDM up 41%, and XCEM up 36%, outpacing the S&P 500's 9% gain, what's driving their success

The iShares MSCI Emerging Markets ex China ETF (NASDAQ:EMXC) is up 39% year to date, outpacing the S&P 500's 9% gain [1]. This significant gap is also seen in the Freedom 100 Emerging Markets ETF (NYSEARCA:FRDM) and Columbia EM Core ex-China ETF (NYSEARCA:XCEM), which are up 41% and 36%, respectively, indicating a strong performance in emerging markets excluding China.

| At a glance | |
|---|---|
| EMXC year-to-date return | 39% |
| FRDM year-to-date return | 41% |
| XCEM year-to-date return | 36% |
| S&P 500 year-to-date return | 9% |

## Emerging Markets Performance
The strong performance of these ETFs can be attributed to their exclusion of China, which has historically dominated emerging market indexes [1]. By carving out China, these funds are able to focus on other emerging markets such as India, Taiwan, and South Korea. The EMXC, for example, has a diversified portfolio of 650 individual holdings and offers a competitive expense ratio of 0.25% [1]. In contrast, the FRDM has a unique country-level filter that screens out authoritarian regimes, resulting in a slightly higher expense ratio of 0.49% [1].

## Competitive Picture
The performance of these ETFs is also notable when compared to other S&P 500-tracking ETFs such as the Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV) [2]. While these ETFs have similar expense ratios and track the same underlying index, they differ in their holdings and dividend yields. The VOO, for example, has a slightly lower expense ratio of 0.03% and a trailing-12-month dividend yield of more than 1% [2].

| ETF | Expense Ratio | Dividend Yield |
| --- | --- | --- |
| VOO | 0.03% | 1% |
| IVV | 0.03% | 1% |
| EMXC | 0.25% | 1.9% |
| FRDM | 0.49% | - |
| XCEM | - | - |

## What to Watch
* The next emerging markets index rebalancing, which could impact the holdings and performance of these ETFs
* The performance of the S&P 500 index, which could influence investor sentiment and flows into emerging markets
* The dividend yields of these ETFs, which could attract income-seeking investors

The outperformance of these iShares ETFs raises questions about the role of China in emerging market indexes and the potential benefits of excluding it [1]. As investors continue to seek diversified portfolios, the performance of these ETFs will be closely watched, and their success could have significant implications for the broader market.

## Sources
1. 247wallst — [3 iShares ETFs Crushing the S&P 500 by 30 Points in 2026 - 24/7 Wall St.](https://247wallst.com/investing/2026/07/05/3-ishares-etfs-crushing-the-sp-500-by-30-points-in-2026/)
2. The Motley Fool — [Vanguard and iShares S&P 500 ETFs Compared: Is There Really a Difference?](https://www.fool.com/coverage/etfs/2026/06/10/vanguard-and-ishares-s-and-p-500-etfs-compared-is-there-really-a-difference/)
3. 24/7 Wall St — [These 3 S&P 500 ETFs Are Nearly Identical But After Doing the Math One of Them Saves You Money Over a Lifetime](https://247wallst.com/investing/2026/06/08/these-3-sp-500-etfs-are-nearly-identical-but-after-doing-the-math-one-of-them-saves-you-money-over-a-lifetime/)

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Cite as: TrendWatcher, "iShares ETFs Outperform S&P 500", https://www.trendwatcher.in/article/696fa2ca-79ae-4479-bcc9-873ee71a229d