An emerging market exchange-traded fund (ETF) is a listed vehicle that invests in stocks from developing economies.
They can offer investors exposure to economies experiencing rapid growth and industrialization, but still facing higher volatility and structural challenges than developed nations.
Many of the world's largest non-NATO economies belong to BRICS countries -- Brazil, Russia, India, China, and South Africa -- all of which are classified as emerging market countries.

Investing in emerging markets through an ETF helps avoid the complexities of currency conversion, provides diversified exposure across multiple sectors and regions, and reduces the risks of picking individual stocks in unpredictable economies.
Five best emerging market ETFs in 2025
Here's a look at some of the best overall emerging markets ETFs, offering broad diversification, exposure to high-growth economies, and suitability for a wide range of investors. Some are index funds, while others are actively managed.
1. iShares Core MSCI Emerging Markets ETF

NYSEMKT: IEMG
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2. Vanguard FTSE Emerging Markets ETF

NYSEMKT: VWO
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NYSEMKT: SPEM
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NYSEMKT: SCHE
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5. Avantis Emerging Markets Equity ETF

NYSEMKT: AVEM
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Benefits and risks of investing in emerging market ETFs
Benefits
- Potential for outperformance when U.S. or other developed markets lag.
- Access to high-growth companies, from Chinese e-commerce to Brazilian natural resources.
- Expanding middle-class populations in many emerging economies create long-term demand for goods and services.
Risks
- Higher volatility due to country-specific risks such as political instability, corruption, or uneven regulation.
- Potential for nationalization or forced delisting of companies if governments tighten control or conflicts arise.
- Vulnerable to foreign exchange swings, with a rising U.S. dollar often creating headwinds unless the ETF uses currency hedging.