Emerging markets are set to outpace some developed economies in 2025, yet many portfolios are still heavily tilted toward the US and Europe. From India’s booming tech sector to Brazil’s resource powerhouses and China’s digital innovators, some of the world’s fastest growing companies are outside the usual investment hotspots.
For investors, emerging markets ETFs offer a simple way to tap into this potential growth while spreading risk across countries and industries.
What are emerging markets ETFs?
Emerging markets ETFs are funds that bundle together shares of companies from interesting economies like Brazil, India, or South Africa. Instead of buying individual stocks, you can invest in one ETF and get exposure to a wide range of businesses across these regions.
They often cover sectors such as banking, energy, telecoms, and technology, giving investors a simple way to tap into the growth of developing economies while spreading risk across countries and industries.
Why emerging markets ETFs are gaining attention in 2025
Emerging markets are back in focus this year as investors look beyond the usual US and European stocks. Several key things are driving the renewed interest:
- Potential growth rates: Many emerging economies are expanding faster than developed ones, helped by younger populations, rising consumer demand and investment in infrastructure.
- Diversification benefits: Adding exposure to these markets can balance a portfolio that is heavily tilted toward Western equities.
- Commodity demand: Countries rich in natural resources are benefiting from higher global demand, especially for energy and raw materials.
- Technology leapfrogging: Emerging markets are adopting digital tools, mobile banking, and renewable energy at scale, creating new growth opportunities.
- Attractive valuations: In some regions, stocks are trading at lower prices compared to developed markets, which appeals to value minded investors.
Together, these trends have made emerging markets ETFs a practical way to capture growth abroad while spreading investments across multiple countries and sectors.
The top 5 emerging markets ETFs* to consider in 2025
There are many emerging markets funds available in 2025, it can be tricky to know where to start. To make things easier, we’ve highlighted five standout ETFs that capture different angles of the EM theme from broad market exposure to focused plays on India, dividends, and Chinese technology.
*This list of ‘Top ETFs’ is based on the most held emerging markets ETFs on InvestEngine’s platform. Top ETFs have been calculated by most bought (by number of clients) between July 2024 and July 2025.
Vanguard FTSE Emerging Markets (Ticker: VFEG)
Provider: Vanguard
Strategy: Tracks the FTSE Emerging Index by directly holding the underlying shares. The fund gives broad exposure to companies across developing economies such as China, India, Brazil, and South Africa, covering sectors from finance and energy to technology.
Why consider it?
- A straightforward, low-cost way to add emerging markets to your portfolio.
- Spreads investments across thousands of companies, so you’re not tied to the fate of a single country or sector.
- Backed by Vanguard, one of the biggest names in index investing.
| Key Details | |
| Launched | 24 Sep 2019 |
| Fund Size | ~£2,225m |
| Ongoing Charges | 0.22% TER |
| Dividend Type | Accumulating |
| Region Focus | Broad emerging markets, largest weights in China, Taiwan, India, and Brazil |
iShares MSCI Emerging Markets IMI (Ticker: EMIM)
Provider: iShares (BlackRock)
Strategy: Tracks the MSCI Emerging Markets IMI index by physically holding a wide mix of large, mid, and small-cap companies. This gives investors full coverage of emerging markets, from global giants to smaller growth names, across a broad range of sectors.
Why consider it?
- Aims to cover the entire spectrum of emerging market companies in one fund.
- Highly diversified and one of the most popular options for broad EM exposure.
- Low ongoing cost with accumulating dividends, making it easy for long term investors.
| Key Details | |
| Launched | 30 May 2014 |
| Fund Size | ~£16,820m |
| Ongoing Charges | 0.18% TER |
| Dividend Type | Accumulating |
| Region Focus | Full EM exposure: large, mid, and small caps across developing economies |
Franklin FTSE India (Ticker: FRIN)
Provider: Franklin Templeton
Strategy: A simple way to tap into India’s stock market by holding a broad mix of large and mid-cap Indian companies across sectors like tech, finance, and consumer goods. It follows the FTSE India index and uses physical, full replication.
Why consider it?
- A friendly way to zero in on one of the world’s fastest-growing markets.
- Sector‑diverse exposure across India’s evolving economy.
- Keeps your risk spread out, by not allowing any single stock to dominate the fund.
| Key Details | |
| Launched | 25 June 2019 |
| Fund Size | £658m |
| Ongoing Charges | 0.19% TER |
| Dividend Type | Accumulating |
| Region Focus | India (large and mid-cap sectors) |
iShares Emerging Markets Dividend (Ticker: SEDY)
Provider: iShares (BlackRock)
Strategy: Invests in emerging market companies known for high dividend yields. The fund uses full physical replication to hold an array of income-generating businesses across different countries and sectors.
Why consider it?
- Aims to offer a steady income stream with a healthy yield – great if dividends matter to you.
- Gives exposure to emerging markets but with a focus on companies that deliver regular payouts.
- Easy way to add both income and global diversification in a single fund.
| Key Details | |
| Launched | 25 November 2011 |
| Fund Size | ~£452m |
| Ongoing Charges | 0.65% TER |
| Dividend Type | Distributing (quarterly) |
| Region Focus | High-dividend companies across emerging markets |
Invesco MSCI China Technology All Shares Stock Connect (Ticker: MCTS)
Provider: Invesco
Strategy: Offers targeted exposure to China’s tech innovators by physically holding stocks across mainland China, Hong Kong and beyond. It brings together software, internet services, hardware and other fast-growing tech firms in a single, focused fund.
Why consider it?
- A convenient way to invest in China’s booming tech sector without juggling multiple funds.
- Focused exposure to innovation and growth from leading Chinese tech names.
- Accumulating dividends lets your dividends reinvest automatically so more of your cash stays in the market.
| Key Details | |
| Launched | 11 June 2021 |
| Fund Size | ~£33m |
| Ongoing Charges | 0.49% TER |
| Dividend Type | Accumulating |
| Region Focus | Chinese technology firms across mainland China |
Comparing the Top 5 Emerging Markets ETFs Side by Side
Each of these ETFs takes a slightly different approach to emerging markets. The table below puts them side by side, making it easy to compare costs, performance, and focus areas at a glance.
| ETF Name | Ticker | Strategy | TER | Dividend Type | Launched | Region Focus | Fund Size |
| Vanguard FTSE Emerging Markets | VFEG | Passive (FTSE Emerging Markets index; large & mid caps) | 0.22% | Accumulating | 24 Sep 2019 | Broad EM – largest weights in China, Taiwan, India, Brazil | ~£2,225m |
| iShares MSCI Emerging Markets IMI | EMIM | Passive (MSCI EM IMI; large, mid & small caps) | 0.18% | Accumulating | 30 May 2014 | Full EM coverage across cap sizes | ~£16,820m |
| Franklin FTSE India | FRIN | Passive (FTSE India 30/18 capped; large & mid caps) | 0.19% | Accumulating | 25 Jun 2019 | India only | ~£658m |
| iShares Emerging Markets Dividend | SEDY | Passive (high-dividend EM companies) | 0.65% | Distributing (quarterly) | 25 Nov 2011 | EM dividend focus | ~£452m |
| Invesco MSCI China Technology All Shares Stock Connect | MCTS | Passive (Chinese technology companies) | 0.49% | Accumulating | 11 Jun 2021 | China tech via Stock Connect (Mainland & HK) | ~£33m |
Beyond the top 5: Other emerging markets ETFs worth watching
While our main list covers a mix of broad, income, and thematic plays, there are a few more emerging markets funds that may better suit your investing style:
Vanguard FTSE Emerging Markets (Ticker: VFEM)
Another Vanguard fund tracking the FTSE Emerging Markets index. Very similar to VFEG, but with a distributing share class, so it suits investors who prefer regular income payments.
iShares MSCI Emerging Markets (Ticker: SEMA)
A broad MSCI EM tracker that covers large and mid-cap stocks. It’s less comprehensive than EMIM (which also includes small caps) but still offers wide exposure at a low cost.
HSBC MSCI Emerging Markets (Ticker: HMEF)
Tracks the same MSCI EM index but from HSBC. Fees are competitive, and some investors like to diversify providers rather than sticking to just iShares or Vanguard.
iShares MSCI India (Ticker: IIND)
An alternative to Franklin’s FRIN. It follows MSCI’s take on the Indian market, giving slightly different stock weightings and sector tilts, while still keeping the focus on one of the fastest-growing economies.
L&G Asia Pacific ex-Japan Equity (Ticker: LGAG)
A regional option that mixes emerging and developed Asia. Alongside countries like India and China, it also holds exposure to developed markets such as Australia, making it a more blended way to access the region.
Key factors to consider before choosing an emerging markets ETF
When you’re comparing emerging markets ETFs, the first thing to check is where the money actually goes. Some funds put a lot of weight on China or India, while others spread across a mix of regions like Latin America, Africa, and Eastern Europe. That geographic balance can make a big difference to performance.
It’s also worth looking at the sectors inside the fund. Banks, energy companies, and tech firms often dominate, but each ETF has its own tilt. If you already hold a lot of tech in your portfolio, for example, you might prefer a fund with more exposure to finance or consumer goods.
Practical details matter too. Larger ETFs tend to be easier and cheaper to trade, thanks to higher liquidity. Fees are another piece of the puzzle even a small difference in charges can add up over time.
And don’t forget currency. Your returns are influenced not only by the companies in the fund but also by how local currencies move against the pound or dollar.
Finally, think about how the ETF fits into your bigger picture. Is it there to boost growth, add diversification, or simply give you a foothold in faster-growing economies? Having that clear in your mind makes choosing the right fund much easier.
Risks and considerations with emerging markets ETFs
Emerging markets have plenty of appeal, but they also carry a few extra risks to keep in mind:
- Political shifts: Elections, policy changes, or trade disputes can move markets quickly.
- Currency swings: A strong pound or dollar can reduce returns from overseas stocks.
- Liquidity: Smaller markets often trade less smoothly, which can mean higher costs when buying or selling.
- Concentration: Some ETFs are heavily weighted toward just a few countries or sectors, so performance depends on how those areas do.
- Volatility: These markets can rise faster than developed ones, but they can also fall harder when conditions change.
Taken together, these risks don’t make emerging markets ETFs a bad choice, they just mean it’s wise to treat them as one part of a broader, balanced portfolio.
How to buy emerging markets ETFs easily with InvestEngine
Getting started with emerging markets ETFs is simple on InvestEngine. The platform is built for ETF investors, with no hidden costs and plenty of flexibility.
Why use InvestEngine?
✅ No trading fees or platform fees
Buy and sell ETFs commission free, so more of your money goes into the market (ETF costs apply).
✅ Powerful portfolio tools
Track your holdings clearly, compare ETFs side by side and adjust your portfolio whenever you need.
✅ Automate your investing
Set up a Savings Plan to invest regularly, just choose the amount and frequency, and the platform takes care of the rest.
✅ Flexible account options
Pick from an ISA, SIPP, General Investment Account, or even a Business Account, all with zero platform fees on DIY portfolios.
With these features, adding an emerging markets ETF to your portfolio is straightforward whether you’re testing the waters with a small investment or building long-term exposure to faster growing economies.
In summary
Emerging markets ETFs offer a straightforward way to invest in potentially high growth economies while adding global balance to a portfolio. They provide access to regions with strong long-term potential, but also come with extra risks like currency swings and political uncertainty.
Used as part of a diversified portfolio, they can help investors capture growth beyond developed markets. With platforms like InvestEngine making them easy and low cost to buy, emerging markets ETFs are a practical option for anyone looking to broaden their global exposure in 2025 and beyond.
Important information
Capital at risk. The value of your investments may go down as well as up, and you may get back less than you invest.
ETF costs apply. If in doubt, you may wish to consult a professional adviser for guidance.
Tax treatment depends on your personal circumstances and may change in future. This article is for general information only and does not constitute financial advice.