Best Emerging Market ETFs for 2026

Emerging market ETFs invest in developing economies that offer faster GDP growth, younger demographics, and expanding middle classes compared to mature developed markets. Countries like China, India, Taiwan, South Korea, and Brazil make up the bulk of most emerging market indices, and these rapidly developing economies present opportunities that are not available in US or European stock markets.

VWO from Vanguard is the low-cost leader among emerging market ETFs, holding over 5,000 stocks from roughly 25 countries at an expense ratio of just 0.08%. IEMG from iShares provides similarly broad coverage with slightly different index methodology that includes South Korean stocks, which some indices classify as developed market. EEM, also from iShares, was the original emerging market ETF and still commands strong liquidity and options market depth, though its higher expense ratio makes it less attractive for buy-and-hold investors.

Emerging markets carry additional risks including political instability, less transparent corporate governance, currency volatility, and regulatory uncertainty. China's significant weight in most EM indices means that Chinese regulatory actions and geopolitical tensions with the US can disproportionately affect returns. Despite these risks, emerging markets have historically delivered strong returns over multi-decade periods and provide valuable diversification benefits for global portfolios.