Best Emerging Market ETFs in 2026

How We Chose These ETFs

Selecting the right ETFs for emerging markets investors requires a careful evaluation of multiple factors. We analyzed dozens of funds across the industry and narrowed our recommendations based on the following criteria. Each factor was weighted according to its importance for investors in this specific category, ensuring that our picks are truly optimized for your goals.

1. Exposure to the — Exposure to the world's fastest-growing economies
2. Higher growth potential — Higher growth potential compared to developed markets
3. Portfolio diversification with — Portfolio diversification with different economic drivers
4. Access to billions — Access to billions of consumers entering the middle class

We also factored in our proprietary Beginner Suitability Score, which evaluates each fund on a 1-to-10 scale considering expense ratios, volatility (beta), diversification (holdings count), dividend history, and track record length. Funds that score consistently high across these dimensions earned a spot on our list.

1. Vanguard FTSE Emerging Markets ETF (VWO) — Best Overall

Vanguard • Emerging Markets

VWO gives investors access to stocks in emerging economies such as China, India, Brazil, Taiwan, and South Africa. These countries have younger populations and faster economic growth potential than developed nations. Beginners should know that emerging markets can be more volatile than developed markets, but VWO offers this higher-growth exposure at a very low cost of 0.08%.

Vanguard FTSE Emerging Markets ETF earns its spot as our best overall pick because it delivers on the metrics that matter most for emerging markets investors. With an expense ratio of just 0.08%, you keep more of your returns working for you over time. The fund manages $75.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, VWO has delivered a total return of 3.20%, providing steady growth for investors who stayed the course through market volatility. The fund holds 5,830 individual securities, giving you exceptional diversification across a wide swath of the market. Its beta of 0.88 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

VWO currently pays a dividend yield of 3.20%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2005, VWO has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 9.5/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

2. iShares Core MSCI Emerging Markets ETF (IEMG) — Best for Growth

BlackRock • Emerging Markets

IEMG tracks the MSCI Emerging Markets Investable Market Index, offering broad exposure to stocks in developing economies like China, India, Taiwan, South Korea, and Brazil. With over 2,800 holdings, it covers large, mid, and small-cap companies across more than 20 emerging market countries. The fund provides access to faster-growing economies at a significantly lower cost than the older EEM fund.

iShares Core MSCI Emerging Markets ETF earns its spot as our best for growth pick because it delivers on the metrics that matter most for emerging markets investors. With an expense ratio of just 0.09%, you keep more of your returns working for you over time. The fund manages $75.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, IEMG has delivered a total return of 4.00%, providing steady growth for investors who stayed the course through market volatility. The fund holds 2,800 individual securities, giving you exceptional diversification across a wide swath of the market. Its beta of 0.90 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

IEMG currently pays a dividend yield of 2.50%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2012, IEMG has demonstrated its ability to perform across different market environments over a meaningful period. Our Beginner Suitability Score rates it 9.5/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

3. iShares MSCI Emerging Markets ETF (EEM) — Best for Diversification

BlackRock • Emerging Markets

EEM tracks the MSCI Emerging Markets Index, offering exposure to large and mid-cap stocks across over 20 developing countries. As one of the original emerging market ETFs launched in 2003, it pioneered accessible EM investing for everyday investors. While newer and cheaper alternatives like IEMG now exist, EEM remains highly popular due to its enormous options market and deep liquidity.

iShares MSCI Emerging Markets ETF earns its spot as our best for diversification pick because it delivers on the metrics that matter most for emerging markets investors. With an expense ratio of just 0.68%, you keep more of your returns working for you over time. The fund manages $20.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, EEM has delivered a total return of 3.50%, providing steady growth for investors who stayed the course through market volatility. The fund holds 1,200 individual securities, giving you exceptional diversification across a wide swath of the market. Its beta of 0.88 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

EEM currently pays a dividend yield of 2.30%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2003, EEM has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 9.5/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

4. Schwab Emerging Markets Equity ETF (SCHE) — Best for International Exposure

Schwab • Emerging Markets Equity

SCHE provides low-cost access to stocks in developing economies like China, India, Taiwan, and Brazil through the FTSE Emerging Index. Emerging markets offer higher growth potential than developed nations but come with added political and currency risks. Beginners who want international diversification beyond the U.S. and Europe can use SCHE to tap into the world's fastest-growing economies.

Schwab Emerging Markets Equity ETF earns its spot as our best for international exposure pick because it delivers on the metrics that matter most for emerging markets investors. With an expense ratio of just 0.11%, you keep more of your returns working for you over time. The fund manages $9.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, SCHE has delivered a total return of 5.50%, providing steady growth for investors who stayed the course through market volatility. The fund holds 1,800 individual securities, giving you exceptional diversification across a wide swath of the market. Its beta of 0.85 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

SCHE currently pays a dividend yield of 2.50%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2010, SCHE has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 9.5/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

Comparison Table

Here is a side-by-side comparison of all 4 ETFs in our emerging markets category. This table highlights the key metrics you should evaluate when choosing between these funds. Pay close attention to expense ratios and beginner scores, as these are the most impactful factors for long-term investment success.

*Beginner Score is calculated based on expense ratio, beta, holdings count, dividend yield, and fund inception year. Past performance does not guarantee future results.

Common Mistakes Emerging Markets Investors Make

Even with a solid selection of ETFs, investors in the emerging markets category can undermine their results by falling into avoidable traps. Understanding these common pitfalls will help you stay on track and avoid costly errors that could set back your financial progress by years or even decades.

• 1

  Overallocating to emerging markets: Overallocating to emerging markets based on growth stories alone

• 2

  Not accounting for higher: Not accounting for higher volatility and political risk

• 3

  Concentrating in a single: Concentrating in a single emerging market country

• 4

  Timing entries based on: Timing entries based on short-term geopolitical events

The best defense against these mistakes is a simple, written investment plan that you commit to following regardless of market conditions. Define your target allocation, set up automatic contributions, and schedule a review only once or twice per year. This removes emotion from the process and keeps you focused on long-term wealth building rather than short-term noise.

Frequently Asked Questions