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Emerging Market ETF Guide: How to Invest in Developing Economies

By Aayush Jain·Reviewed May 8, 2026·10 min read

Emerging markets — broadly: China, India, Brazil, South Korea, Taiwan, South Africa, and 20+ others — represent about 40% of global GDP but only 10–15% of a market-cap weighted world index. For investors who want to increase EM exposure beyond what's in a global ETF, dedicated EM ETFs are the most accessible route.

What's inside an EM ETF

The MSCI Emerging Markets Index (tracked by most EM ETFs) includes approximately 1,400 stocks from 24 countries. As of 2025, the largest country weights are China (~27%), India (~18%), Taiwan (~17%), South Korea (~12%), and Brazil (~6%). The index is market-cap weighted, so Chinese and Indian tech/internet companies dominate the top holdings.

Best EM ETFs for non-US investors

  • iShares Core MSCI EM IMI UCITS ETF (EIMI) — broadest coverage including small-caps, TER 0.18%, GBP/USD/EUR share classes available
  • Vanguard FTSE Emerging Markets UCITS ETF (VFEM) — similar coverage, TER 0.22%
  • iShares MSCI EM ex-China UCITS ETF — for investors wanting to reduce China concentration
  • Mirae Asset NYSE FANG+ ETF (India-listed) — tech-focused EM exposure available in INR for Indian investors

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