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.
How We Rank
ETFs are ranked by assets under management (AUM). Only ETFs with $50M+ in assets are included. Data is updated daily.
| # | Symbol | Fund Name | AUM |
|---|---|---|---|
| 1 | VWO | Vanguard FTSE Emerging Markets ETF | $151.80B |
| 2 | IEMG | iShares Core MSCI Emerging Markets ETF | $136.63B |
| 3 | EEM | iShares MSCI Emerging Markets ETF | $28.51B |
| 4 | ACWI | iShares MSCI ACWI ETF | $28.27B |
| 5 | AVEM | Avantis Emerging Markets Equity ETF | $20.19B |
| 6 | EMB | iShares J.P. Morgan USD Emerging Markets Bond ETF | $17.35B |
| 7 | SPEM | State Street SPDR Portfolio Emerging Markets ETF | $16.44B |
| 8 | EMXC | iShares MSCI Emerging Markets ex China ETF | $16.28B |
| 9 | SCHE | Schwab Emerging Markets Equity ETF | $11.77B |
| 10 | DFAX | Dimensional - World ex US Core Equity 2 ETF | $10.72B |
| 11 | VIGI | Vanguard International Dividend Appreciation ETF | $9.40B |
| 12 | FNDE | Schwab Fundamental Emerging Markets Large Company Index ETF | $8.93B |
| 13 | DFAE | Dimensional - Emerging Core Equity Market ETF | $8.22B |
| 14 | DFEM | Dimensional - Emerging Markets Core Equity 2 ETF | $7.76B |
| 15 | CGCP | Capital Group Core Plus Income ETF | $7.19B |
| 16 | JGLO | JPMorgan Global Select Equity ETF | $6.69B |
| 17 | VWOB | Vanguard Emerging Markets Government Bond ETF | $6.40B |
| 18 | ESGE | iShares ESG Aware MSCI EM ETF | $6.25B |
| 19 | EMLC | VanEck J.P. Morgan EM Local Currency Bond ETF | $5.04B |
| 20 | IXSRF | iShares MSCI EM ex-China UCITS ETF | $4.77B |
| 21 | REET | iShares Global REIT ETF | $4.59B |
| 22 | TOTL | State Street DoubleLine Total Return Tactical ETF | $4.20B |
| 23 | DEM | WisdomTree Emerging Markets High Dividend Fund | $3.50B |
| 24 | XT | iShares Future Exponential Technologies ETF | $3.48B |
| 25 | ACWV | iShares MSCI Global Min Vol Factor ETF | $3.45B |
What to Look For
Country allocation is critical — check whether the fund has heavy China exposure and how it treats countries like South Korea and Taiwan. Expense ratios range from 0.08% to 0.70% in this category, so cost differences are meaningful over time. Look at the fund's inclusion of small-cap stocks, which differs significantly between VWO and its peers.
Consider geopolitical risk, particularly around China and Taiwan, and whether you might prefer an ex-China emerging market fund to manage this exposure. Also evaluate the fund's dividend yield, which tends to be competitive in emerging markets, and check the currency impact on historical returns.
Which Emerging Market ETFs Is Best for You?
VWO is the best value in emerging market ETFs with its ultra-low 0.08% expense ratio and comprehensive coverage of over 5,000 stocks. Vanguard's fund is broadly diversified across countries and includes small-cap companies that many competitors miss. For long-term investors who want maximum EM diversification at minimum cost, VWO is the clear winner.
IEMG is the closest competitor to VWO, offering broad emerging market exposure from iShares at a competitive expense ratio. IEMG includes South Korean stocks, which VWO excludes based on index classification differences. This gives IEMG exposure to Samsung and other Korean tech giants, which can be an advantage during tech-led rallies.
EEM remains the go-to emerging market ETF for traders and options strategists due to its exceptional liquidity and deep options market. Its 0.70% expense ratio is much higher than VWO or IEMG, so it is not ideal for long-term holders. However, for tactical trades and hedging strategies, EEM's liquidity premium is worth the higher cost.