At a glance
LDEM charges 0.16% a year, below the 0.25% average of the 8 funds most like it (the 4th cheapest of 9). It has $33.9M in assets, the 9th largest of that group; it paid 3.09% of its price in distributions over the past 12 months, semiannual. Over the past year it returned −2.8% with distributions reinvested (S&P 500: +11.5%), the weakest of those 9 funds; over three years it returned +15.5% a year. At its worst it fell 31.7% in the 2020 crash (S&P 500: 33.7%) and 33.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 32 months after the lows. Its ten largest positions make up 29.0% of the fund, out of 450 in all.
The short version
The iShares ESG MSCI EM Leaders ETF (LDEM) tracks the MSCI EM Extended ESG Leaders 5% Issuer Capped Index: emerging-market stocks that rate highly on environmental, social and governance (ESG) measures against sector peers. Its 0.16% expense ratio is below the 0.25% peer average. But it is the smallest of its peers, with $34 million in assets as of August 31, 2026, and ranked last on one- and three-year returns through October 27, 2026.
Price history
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LDEM -2.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| LDEM official prospectus, to Dec 31, 2024 | — | +6.70% | — | +0.60% | — | — |
| LDEM price data to Oct 27, 2026 | -0.6% | -2.8% | +15.5% | +1.3% | — | +4.0% |
- Over the year to Oct 27, 2026, LDEM returned -2.8%, 9th of 9 among similar funds.
- Its 5-year annualized return was +1.3%.
- In the 2020 COVID crash it fell 31.7% and regained its old high 4.2 months after the low.
- Its worst full calendar year was 2022 (-22.5%); its best was 2025 (+32.4%).
- The deepest fall in its price history was 40.8% (Feb 17, 2021 to Oct 24, 2022), recovered by Sep 17, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -0.6% | — |
| 2025 | +32.4% | — |
| 2024 | +5.9% | +6.70% |
| 2023 | +6.5% | +4.22% |
| 2022 | -22.5% | -21.57% |
| 2021 | -2.0% | -0.61% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 31.7% over that stretch · deepest drop along the way 31.7%, back to its old high 4.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 30% over that stretch · deepest drop along the way 33%, back to its old high 32.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.5000 | |
| 2025 | $1.8900 | +57.5% |
| 2024 | $1.2000 | -14.9% |
| 2023 | $1.4100 | -32.9% |
| 2022 | $2.1000 | +100.0% |
| 2021 | $1.0500 |
What's inside
As of Aug 31, 2026, the fund held 450 securities; the ten largest made up 28.97% of assets.
| Holding | Weight | |
|---|---|---|
| Taiwan Semiconductor Manufacturing Company Limited | 5.10% | |
| SK hynix Inc. | 5.00% | |
| Tencent Holdings Limited | 4.66% | |
| Alibaba Group Holding Limited | 4.01% | |
| DELTA ELECTRONICS, INC. | 2.38% | |
| CHINA CONSTRUCTION BANK CORPORATION | 2.13% | |
| RELIANCE INDUSTRIES LIMITED | 1.70% | |
| SK Square Co., Ltd. | 1.44% | |
| INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED | 1.31% | |
| SAMSUNG ELECTRO-MECHANICS CO.,LTD | 1.24% | |
| MEITUAN | 1.05% | |
| Ping An Insurance (Group) Company of China, Ltd. | 0.98% | |
| United Microelectronics Corporation | 0.97% | |
| KB Financial Group Inc. | 0.93% | |
| NETEASE, INC. | 0.89% |
By country
Cayman Islands 17.35%Taiwan 15.81%South Korea 15.62%China 12.04%India 10.05%By asset type
Stocks 97.33%Other 2.35%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -1.76%, -1.00%, +3.15%.
How it works
LDEM tracks the MSCI EM Extended ESG Leaders 5% Issuer Capped Index. MSCI starts with the MSCI Emerging Markets Index and drops companies involved in alcohol, tobacco, gambling, weapons, firearms, nuclear power, palm oil, thermal coal, and arctic or unconventional oil and gas. Some of these screens apply only above set revenue levels. Firms with very serious controversies are also cut. The rest need an ESG (environmental, social and governance) rating of BB or higher on MSCI's CCC-to-AAA scale, judged against sector peers.
Within each sector, MSCI ranks companies mainly by ESG rating. It picks from the top until it covers about 50% of that sector's value in the parent index. It then weights them by free float-adjusted market capitalization (the value of shares available to public investors) and caps each company at 5%. As of August 31, 2026, Taiwan Semiconductor Manufacturing (5.1%) and SK hynix (5.0%) sat near that cap. The index is reviewed each May.
BlackRock uses representative sampling, so the fund may hold only a sample of index stocks with similar traits. At least 90% of assets generally sit in index stocks or depositary receipts (certificates representing foreign shares). Up to 10% can go to futures, options, swaps and cash. As of August 31, 2026, it held 450 stocks and 1.84% cash. It does not turn defensive when markets fall.
What it really costs
- LDEM charges 0.16% a year, versus an average of 0.25% for the similar funds below (4th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $16 in the first year and $205 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| LDEM | $16 | $52 | $90 | $205 |
In a retirement portfolio
Emerging-market stocks are volatile, and this small ESG fund lost 40.8% at its deepest, so it fits as a modest add-on rather than a portfolio's foundation.
LDEM could add ESG-screened emerging-market stocks to a portfolio built mostly on US and other developed markets, but it swings hard. It launched in February 2020, so it has no 2008 record. It fell 31.7% in the 2020 COVID crash and recovered in about four months. In the 2022 bear market it fell 33% and took about 32 months to recover. 2022 was also its worst calendar year, down 21.6%. Its deepest drop, 40.8% from a February 2021 peak to October 2022, took nearly 35 months to recover. Withdrawals during such a slump mean cashing out at low prices.
Its trailing 12-month yield was 3.09% as of October 27, 2026, paid twice a year. In the SEC's standard example, its 0.16% expense ratio adds up to about $205 over 10 years on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting emerging-market stocks such as Taiwan Semiconductor Manufacturing and Tencent, minus tobacco, weapons, gambling, thermal coal and companies with severe controversies.
- Cost-aware ESG investors: its 0.16% expense ratio is below ESGE's 0.26%, NUEM's 0.36% and the 0.25% average for similar funds.
- Patient holders who can sit through drops like its 40.8% fall from February 2021 to October 2022, which took nearly 35 months to recover.
Look elsewhere if
- Investors focused purely on cost: IEMG (0.09%), SCHE (0.11%) and VWO (0.07%) charge less, though without this fund's ESG screens.
- Anyone wary of tiny funds: its roughly $34 million in assets as of August 31, 2026, was the smallest among peers, which raises the risk of closure.
- Those expecting peer-level returns: it trailed all eight similar funds over one and three years through October 27, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| LDEM this fund | — | 0.16% | $33.9M | -2.8% | +15.5% |
| EMXF iShares ESG Advanced MSCI EM ETF | 65% | 0.17% | $165.8M | +17.2% | +21.5% |
| ESGE iShares ESG Aware MSCI EM ETF | 53% | 0.26% | $6.91B | +15.2% | +23.2% |
| NUEM Nuveen ESG Emerging Markets Equity ETF | 49% | 0.36% | $372.8M | +9.5% | +19.4% |
| EEM iShares MSCI Emerging Markets ETF | 44% | 0.72% | $31.21B | +12.7% | +20.3% |
| SCHE Schwab Emerging Markets Equity ETF | 40% | 0.11% | $13.00B | +4.4% | +16.7% |
| IEMG iShares Core MSCI Emerging Markets ETF | 40% | 0.09% | $160.90B | +11.7% | +19.8% |
| EMXC iShares MSCI Emerging Markets ex China ETF | 38% | 0.25% | $24.92B | +27.3% | +24.6% |
Questions investors ask
What stocks does LDEM hold?
LDEM holds large and mid-size emerging-market stocks that pass MSCI's ESG (environmental, social and governance) screens. As of August 31, 2026, it owned 450 stocks, and the top 10 made up 28.97% of the portfolio. The largest were Taiwan Semiconductor Manufacturing (5.1%), SK hynix (5.0%), Tencent (4.7%), Alibaba (4.0%) and Delta Electronics (2.4%). By country, the biggest share was the Cayman Islands (17.35%), where Tencent and Alibaba are registered. Next came Taiwan (15.81%), South Korea (15.62%), China (12.04%) and India (10.05%).
Does LDEM pay dividends?
Yes, LDEM pays dividends twice a year. Over the 12 months through October 27, 2026, it paid $1.77 per share, a trailing yield of 3.09%. Payments can vary from one period to the next. They depend on what the underlying companies pay out and on exchange rates, because the fund's value is measured in US dollars. The twice-yearly schedule may be less convenient for retirees who budget around monthly income.
LDEM vs EMXF: what's the difference?
The biggest differences are size and returns, not cost. Both are iShares emerging-market ETFs with ESG screens, and about 65% of their holdings overlap. LDEM charges 0.16% a year, and EMXF, the iShares ESG Advanced MSCI EM ETF, charges 0.17%. As of August 31, 2026, EMXF held about $166 million in assets and LDEM about $34 million. Over the year through October 27, 2026, EMXF returned 17.2% while LDEM lost 2.8%. Over three years, EMXF averaged 21.5% a year and LDEM 15.5%.
What is LDEM's expense ratio?
LDEM's expense ratio, the yearly fee taken from fund assets, is 0.16%, according to its prospectus filed December 19, 2025. That is below the 0.25% average for similar funds and the 0.26% charged by the much larger iShares ESG Aware MSCI EM ETF (ESGE). It is above IEMG (0.09%), SCHE (0.11%) and VWO (0.07%). In the SEC's standard example, $10,000 earning 5% a year would incur about $16 in costs after one year, $90 after five years and $205 after 10 years.
How has LDEM performed?
Unevenly, and it has trailed similar funds. According to its prospectus, it returned -0.61% in 2021, -21.57% in 2022, 4.22% in 2023 and 6.7% in 2024. Based on share prices, it gained 32.44% in 2025. Over the five years through October 27, 2026, it averaged 1.3% a year. In the last 12 months of that period it lost 2.8%, behind all eight similar funds. The prospectus warns that ESG screens can cause the fund to lag funds that don't use them.