Emerging Market Fund: What It Is, Types, Example

What Is an Emerging Market Fund?

By Matthew DiLallo – Updated Dec 2, 2025 at 2:44 AM EST

Key Points

Emerging market funds invest in developing nations, potentially offering higher growth.
These funds diversify investment portfolios, potentially reducing risk and volatility.
Options include ETFs and mutual funds, targeting specific regions or investment themes.

Emerging market funds are investment funds that focus on developing countries. These nations are undergoing an economic transition that often results in higher growth than developed countries. Investors can sometimes earn higher returns by investing in an emerging market fund.

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About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

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Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard International Equity Index Funds - Vanguard Ftse Emerging Markets ETF. The Motley Fool has a disclosure policy.