How to invest in emerging markets using ETFs

How do I invest in stocks from Emerging Markets?

The easiest way to invest in Emerging Markets worldwide is to invest in a broad market index. This can be done at a low cost by using ETFs.

In this curated investment guide, you will find all ETFs that allow you to invest broadly diversified in Emerging Markets worldwide. Currently, there are 17 ETFs available.

The total expense ratio (TER) of ETFs tracking stocks from Emerging Markets is between 0.14% p.a. and 0.65% p.a..

 
0.14% p.a. - 0.65% p.a.
annual total expense ratio (TER) of emerging markets ETFs
tracking stocks from Emerging Markets, which are tracked by ETFs
that track a broadly diversified emerging markets index
The best indices for emerging markets ETFs

How do I invest in companies from emerging markets?

Investing in emerging markets worldwide can be very easy and cost-effective by using a single ETF that tracks a broadly diversified emerging markets index which is weighted by market capitalisation. Currently, the following indices can be considered for a globally diversified investment in emerging market equities:
  This curated investment guide allows you to compare both the available ETFs and the underlying indices on emerging markets worldwide and to select an ETF that fits your preferences best. For more information on investing in emerging markets and the indices mentioned above, see our article Emerging Markets ETFs: Investing in Emerging Markets with ETFs.

A worldwide emerging markets ETF is an excellent complement to a global developed markets ETF, like an MSCI World ETF. You can construct a globally diversified, yet simple and cost-efficient portfolio by combining two such ETFs. When using indices from different providers, you should make sure that none of the countries you want to cover is missing or included twice. You can ensure this by selecting two ETFs that track indices from the same provider. For more information on this topic, please have a look at our article MSCI Vs FTSE: Which is the best index provider?.

Alternatively, you may invest in a single World ETF that covers both developed and emerging markets.

In our ETF screener, you will find additional emerging markets ETFs, like sustainable emerging markets ETFs and dividend ETFs on emerging markets. In addition, you can monitor the performance of various emerging market indices with our market overview “ETF Emerging Markets”.
 

Performance of broadly diversified emerging markets indices in comparison

Source: justETF Research; As of 14/05/2021; Performance over 1 year in EUR.

 

Indices in comparison

Indices on stocks from Emerging Markets

The best indices for emerging markets ETFs

For an investment in stocks from Emerging Markets, there are 3 indices available that are tracked by 17 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.14% p.a. and 0.65% p.a.. Depending on the market environment, stocks from a single country can make up large parts of an index. You can find more information regarding the concentration of countries, companies and sectors in the index factsheets linked below.
 
Index Investment focus Number of ETFs Number of constituents Short description
FTSE Emerging Emerging Markets 2 ETFs 1,865
(30/04/2021)
The FTSE Emerging index tracks stocks from emerging markets worldwide.
Index factsheet
MSCI Emerging Markets Emerging Markets 13 ETFs 1,391
(30/04/2021)
The MSCI Emerging Markets index tracks stocks from emerging markets worldwide.
Index factsheet
MSCI Emerging Markets Investable Market (IMI) Emerging Markets 2 ETFs 3,071
(30/04/2021)
The MSCI Emerging Markets (IMI) index tracks stocks from emerging markets worldwide.
Index factsheet
Index 1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
5 years
in %
FTSE Emerging -0.58% 2.39% 16.79% 31.26% 24.31% 64.09%
MSCI Emerging Markets -0.61% 2.17% 18.95% 33.64% 23.41% -
MSCI Emerging Markets Investable Market (IMI) -0.22% 3.44% 20.69% 37.87% 24.28% 67.94%

Source: justETF.com; As of 30/04/2021; Calculations in EUR based on the largest ETF of the respective index.

 

ETFs in comparison

ETFs tracking stocks from Emerging Markets

All emerging markets ETFs in comparison

In the table below we have listed the currently available emerging markets ETFs. Via the "Properties" and "Performance" tabs, you can find detailed information on these ETFs and sort them according to your desired criterion. More information about the different criteria when choosing an ETF can be found in our article on ETF selection.
 
ETF
ISIN
Fund size
in m EUR
TER
in %
Inception date Use of profits Fund domicile Replication method
iShares Core MSCI Emerging Markets IMI UCITS ETF (Acc)IE00BKM4GZ66 15,430 0.18% p.a. 30/05/2014 Accumulating Ireland Optimized sampling
Xtrackers MSCI Emerging Markets UCITS ETF 1CIE00BTJRMP35 4,460 0.18% p.a. 21/06/2017 Accumulating Ireland Optimized sampling
iShares MSCI EM UCITS ETF (Dist)IE00B0M63177 3,409 0.18% p.a. 18/11/2005 Distributing Ireland Optimized sampling
Amundi MSCI Emerging Markets UCITS ETF EUR (C)LU1681045370 2,817 0.20% p.a. 30/11/2010 Accumulating Luxembourg Unfunded swap
Vanguard FTSE Emerging Markets UCITS ETF DistributingIE00B3VVMM84 2,141 0.22% p.a. 22/05/2012 Distributing Ireland Optimized sampling
UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 1,864 0.23% p.a. 12/11/2010 Distributing Luxembourg Optimized sampling
Xtrackers MSCI Emerging Markets Swap UCITS ETF 1CLU0292107645 1,055 0.49% p.a. 22/06/2007 Accumulating Luxembourg Unfunded swap
Lyxor MSCI Emerging Markets UCITS ETF - Acc EURFR0010429068 996 0.55% p.a. 17/04/2007 Accumulating France Unfunded swap
iShares MSCI EM UCITS ETF (Acc)IE00B4L5YC18 968 0.18% p.a. 25/09/2009 Accumulating Ireland Optimized sampling
HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 894 0.15% p.a. 05/09/2011 Distributing Ireland Optimized sampling
Lyxor MSCI Emerging Markets (LUX) UCITS ETFLU0635178014 663 0.14% p.a. 28/09/2011 Distributing Luxembourg Unfunded swap
iShares Core MSCI Emerging Markets IMI UCITS ETFIE00BD45KH83 567 0.18% p.a. 05/03/2018 Distributing Ireland Optimized sampling
SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 444 0.42% p.a. 13/05/2011 Accumulating Ireland Optimized sampling
Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 399 0.19% p.a. 26/04/2010 Accumulating Ireland Unfunded swap
Amundi Index MSCI Emerging Markets UCITS ETF DR EUR (D)LU1737652583 306 0.20% p.a. 06/02/2018 Distributing Luxembourg Full replication
Vanguard FTSE Emerging Markets UCITS ETF AccIE00BK5BR733 81 0.22% p.a. 24/09/2019 Accumulating Ireland Optimized sampling
Deka MSCI Emerging Markets UCITS ETFDE000ETFL342 57 0.65% p.a. 01/07/2010 Accumulating Germany Unfunded swap
ETF
ISIN
1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
5 years
in %
iShares Core MSCI Emerging Markets IMI UCITS ETF (Acc)IE00BKM4GZ66 -0.22% 3.44% 20.69% 37.87% 24.28% 67.94%
Xtrackers MSCI Emerging Markets UCITS ETF 1CIE00BTJRMP35 -0.61% 2.17% 18.95% 33.64% 23.41% -
iShares MSCI EM UCITS ETF (Dist)IE00B0M63177 -0.64% 2.14% 19.06% 35.55% 22.44% 65.49%
Amundi MSCI Emerging Markets UCITS ETF EUR (C)LU1681045370 -0.39% 2.60% 18.75% 34.65% 23.02% 68.20%
Vanguard FTSE Emerging Markets UCITS ETF DistributingIE00B3VVMM84 -0.58% 2.39% 16.79% 31.26% 24.31% 64.09%
UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 -0.64% 2.04% 18.73% 33.52% 23.46% 67.74%
Xtrackers MSCI Emerging Markets Swap UCITS ETF 1CLU0292107645 -0.67% 2.06% 18.71% 33.02% 22.19% 65.41%
Lyxor MSCI Emerging Markets UCITS ETF - Acc EURFR0010429068 -0.39% 2.48% 18.59% 34.38% 21.75% 65.21%
iShares MSCI EM UCITS ETF (Acc)IE00B4L5YC18 -0.65% 2.13% 18.98% 35.12% 22.50% 65.81%
HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 -0.69% 2.01% 18.68% 33.36% 22.52% 66.67%
Lyxor MSCI Emerging Markets (LUX) UCITS ETFLU0635178014 -0.63% 2.16% 19.04% 34.26% 23.14% 67.10%
iShares Core MSCI Emerging Markets IMI UCITS ETFIE00BD45KH83 -0.21% 3.55% 20.85% 37.01% 24.38% -
SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 -0.61% 2.20% 19.06% 33.65% 23.22% 67.61%
Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 -0.64% 2.08% 18.78% 33.21% 22.30% 65.42%
Amundi Index MSCI Emerging Markets UCITS ETF DR EUR (D)LU1737652583 -0.65% 2.20% 18.47% 34.50% 23.19% -
Vanguard FTSE Emerging Markets UCITS ETF AccIE00BK5BR733 -0.59% 2.39% 16.80% 31.26% - -
Deka MSCI Emerging Markets UCITS ETFDE000ETFL342 -0.72% 1.91% 18.47% 32.56% 20.49% 61.47%

Source: justETF.com; As of 30/04/2021