Best Emerging Markets ETFs
Published by Radif Partners · Updated
IntermediateCompare the top Emerging Markets ETFs for exposure to developing economies. High-growth potential from China, India, Taiwan and more.
This guide reviews 24 Emerging Markets ETFs funds available in Europe. They track 17 different indices, which is the first thing to check: two funds filed under the same theme do not necessarily hold the same securities, and a one-year performance gap is often explained by that rather than by how the fund is run. Their ongoing charges start at 0.08% for an average of 0.37%, and 17 of them pay their dividends out while the rest reinvest them. 15 are domiciled in IE, which sets the withholding tax the fund suffers on the dividends it receives. The oldest, EWZ, launched in 2000, giving 26 years of history, enough to see how it behaved in a fall. The order on this page does not follow past performance: over the horizons published it says more about the index tracked than about how the fund is run, and it does not repeat. What counts are the fees, the assets and the tracking quality, the figures that are known in advance.
Updated 2025-05
Emerging markets encompass rapidly developing economies such as China, India, Taiwan, South Korea, Brazil and South Africa. These countries represent over 40% of global GDP and are home to a young, growing population, giving them superior long-term growth potential compared to developed markets.
The MSCI Emerging Markets index, the most widely used in this category, covers roughly 1,400 companies across 24 countries. China, Taiwan, India and South Korea alone account for over 70% of the index. Technology (TSMC, Samsung) and consumer sectors (Alibaba, Tencent) are particularly prominent, reflecting the rise of the Asian middle class.
Investing in emerging markets through an ETF adds geographic diversification that neither the S&P 500 nor the MSCI World provides. However, this asset class comes with higher volatility and specific risks (political, regulatory, currency). This comparison analyses the leading emerging market ETFs available in Europe to help you choose the right fund for your profile.
0.37%
+9.4%
494.8B
24
VWO, FTSE Emerging Markets All Cap China A Inclusion
Vanguard FTSE Emerging Markets ETF
Simulated from available data points. Past returns do not guarantee future results.
Best Performance
Lowest Cost
Largest Funds
How to choose an emerging markets ETF
Index selection is critical. The MSCI Emerging Markets is the standard, but important variants exist: the MSCI EM IMI includes small caps, the MSCI EM ex-China excludes China (useful if you want to manage your Chinese exposure separately), and the FTSE Emerging Markets classifies South Korea as a developed country (unlike MSCI). These methodology differences can have a significant impact on performance.
Fees (TER) range from 0.14% for the most competitive ETFs (iShares Core MSCI EM IMI) to 0.65% for more niche products. Favour funds with AUM above €1 billion to ensure good liquidity. Optimised physical replication (the fund holds a representative sample of the index) is the norm in this category, as holding all 1,400 emerging market stocks would incur high transaction costs.
For French investors, PEA-eligible emerging markets ETFs exist (Amundi PEA MSCI Emerging Markets). Synthetic replication provides access to emerging markets while benefiting from the PEA's tax advantage. Outside the PEA, Irish-domiciled ETFs remain the optimal choice for tax efficiency.
Full Comparison
| # | Name | TER | AUM | Replication | Distribution | 1Y | 3Y | 5Y | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | VWOVanguard FTSE Emerging Markets All Cap China A Inclusion | 0.08% | 164.7B | physical | distributing | +5.2% | +15.3% | +2.3% | |
| 2 | IEMGiShares MSCI Emerging Markets Investable Market | 0.09% | 160.1B | physical | distributing | +12.9% | +18.6% | +3.8% | |
| 3 | EIMIiShares MSCI Emerging Markets Investable Market | 0.18% | 46.8B | physical | accumulating | +17.9% | +22.7% | +7.3% | |
| 4 | EEMiShares MSCI Emerging Markets | 0.68% | 31.1B | physical | distributing | +14.1% | +19.5% | +3.9% | |
| 5 | XMMEXtrackers MSCI Emerging Markets | 0.18% | 15.1B | physical | accumulating | +5.9% | +21.3% | +8.0% | |
| 6 | EMBiShares J.P. Morgan EMBI Global Core | 0.39% | 12.9B | physical | distributing | -5.0% | +4.5% | -3.5% | |
| 7 | SCHESchwab FTSE Emerging Index | 0.11% | 12.8B | physical | distributing | +5.0% | +15.5% | +2.5% | |
| 8 | EWZiShares MSCI Brazil 25/50 | 0.58% | 8.6B | physical | distributing | +37.2% | +11.8% | +6.8% | |
| 9 | IEMBiShares J.P. Morgan EMBI Global Core | 0.45% | 6.8B | physical | distributing | -5.4% | +3.4% | -4.1% | |
| 10 | HMEFHSBC MSCI Emerging Markets | 0.15% | 6.1B | physical | distributing | -12.2% | +17.3% | +5.3% | |
| 11 | VFEMVanguard FTSE Emerging Markets | 0.22% | 6.0B | physical | distributing | +5.9% | +12.8% | +3.5% | |
| 12 | EMBEiShares J.P. Morgan GBI-EM Global Diversified | 0.50% | 5.3B | physical | distributing | -3.5% | -1.4% | -2.6% | |
| 13 | IMAEiShares MSCI Emerging Markets Investable Market | 0.18% | 4.5B | physical | distributing | – | – | – | |
| 14 | SUESiShares MSCI EM SRI Select Reduced Fossil Fuels | 0.25% | 3.9B | physical | accumulating | +17.1% | +16.1% | +5.0% | |
| 15 | LTAMiShares MSCI EM Latin America | 0.74% | 2.0B | physical | distributing | +33.0% | +11.1% | +11.4% | |
| 16 | JGEMJPMorgan JPMorgan Asset Management EM REI | 0.30% | 2.0B | physical | accumulating | – | – | – | |
| 17 | VEMTVanguard Bloomberg EM USD Government 10% Country Capped Bond | 0.25% | 1.6B | physical | distributing | -5.2% | -0.4% | -3.0% | |
| 18 | XMEMXtrackers MSCI Emerging Markets Select ESG Screened | 0.18% | 1.5B | physical | accumulating | +6.0% | +21.1% | +7.8% | |
| 19 | PAEEMAmundi MSCI Emerging Markets | 0.20% | 931M | synthetic | accumulating | +24.0% | +21.6% | +8.0% | |
| 20 | EMSMiShares MSCI Emerging Markets Small Cap | 0.74% | 635M | physical | distributing | +9.1% | +12.0% | +7.3% | |
| 21 | IBZLiShares MSCI Brazil | 0.74% | 519M | physical | distributing | +39.5% | +8.2% | +9.5% | |
| 22 | EZAiShares MSCI South Africa 25/50 | 0.57% | 474M | physical | distributing | +0.1% | +20.7% | +6.0% | |
| 23 | SPEMSPDR MSCI Emerging Markets Small Cap | 0.55% | 400M | physical | accumulating | – | – | – | |
| 24 | TURiShares MSCI Turkey IMI 25/50 | 0.57% | 163M | physical | distributing | -4.6% | -1.8% | +9.3% |
Key takeaways
- 1The cheapest MSCI Emerging Markets ETFs have a TER of 0.14% (iShares Core MSCI EM IMI), remarkably low for this asset class.
- 2China represents roughly 25-30% of the MSCI EM index, if this concentration concerns you, ex-China variants are available.
- 3The difference between MSCI and FTSE (South Korea classification) can explain performance gaps of 1-2% in certain years.
- 4Historically, emerging markets have underperformed developed markets over the past decade, but current valuations are significantly more attractive.
- 5A 10-20% allocation to emerging markets in a global portfolio is consistent with their weight in the world economy.
- 6Specific risks (regulation, geopolitics, currency) justify a diversified approach rather than a single-country bet.
Frequently asked questions
Should I include emerging markets if I already have an MSCI World ETF?
Are emerging markets too risky?
Which emerging markets ETF is PEA-eligible?
What is China’s share in emerging markets ETFs?
Are emerging markets suitable for beginners?
MSCI EM vs FTSE EM: what are the differences?
Data sourced from fund factsheets. Last updated 2025-05.