Trading Emerging Markets: Top Emerging Markets ETFs for Traders

When it comes to investing in countries and their markets, no two markets are ever the same. In fact, risk and reward vary disproportionately across these different economies.

It is generally agreed that there are three types of economies, namely the advanced, emerging, and frontier (developing) economies.

In this article, we will cover everything you need to get started investing in emerging markets. What's more? We’ve compiled a list of the top 10 emerging markets you can check out right away. So, let’s get it moving.

What Are Emerging Markets?

Emerging markets are nations transitioning from low-income, less-developed statuses to more industrialized, higher-income economies.

This means that this kind of market is typically marked by rapid economic growth, increased integration into the global economy, and improving living standards.

While emerging markets are usually well on their way to becoming more stable and advanced, they don’t match the level of market efficiency, regulation, or even regulatory bodies that advanced markets have just yet.

Think of frontier markets, on the other hand, as the training ground before a country graduates to emerging market status. These are the smaller, less-developed economies that haven’t quite made the leap yet.

Unlike emerging markets, which are already seeing rapid growth and industrialization, frontier markets are still in the early stages of economic development. Some of these developed markets are just beginning to open up to foreign investment, while others are struggling to gain momentum.

These markets tend to have lower liquidity, weaker infrastructure, and more unpredictable economic conditions, but they can also present unique opportunities for investors willing to take on higher risk, as they often generate a higher economic growth rate.

Characteristics of Emerging Markets

Emerging markets are often seen as the sweet spot for investors looking for higher growth potential. These economies are expanding faster than advanced markets, offering exciting opportunities.

Of course, with that growth also comes risk. They tend to be more volatile, meaning prices can swing dramatically in response to economic and political shifts.

One key reason for this volatility is that emerging markets are still in a phase of industrialization. Their economies are growing at above-average rates, but their per capita income remains lower compared to developed nations.

For instance, countries like China and India have experienced significant industrialization and urbanization, contributing to their classification as emerging markets. China’s GDP of around $19.5–$20 trillion and India’s roughly $4.2–$4.5 trillion, as of early 2026, are nothing compared to the USA's $29.17 trillion.

Also, a rapidly expanding middle class and young, growing populations fuel demand, making these markets attractive for long-term investments. However, their financial systems and institutions are still evolving, which can sometimes create instability.

Currency fluctuations are another challenge. Many emerging market currencies experience wild swings against stronger ones like the US dollar.

Governments often try to stabilize their exchange rates to prevent capital flight, where citizens move their money abroad, and to attract foreign investment. At the same time, these economies are highly sensitive to commodity prices, which means that changes in oil, metals, or agricultural goods can have a big impact on growth.

To mitigate these risks, many emerging markets are pushing for economic reforms. They’re working towards more open-market policies, greater financial transparency, and stronger legal systems to boost investor confidence.

The goal of these emerging market countries is to create a more stable and business-friendly environment, one that encourages both domestic and international investment while reducing the risks that have long been associated with these markets.

Emerging markets are often seen as the sweet spot for investors looking for higher growth potential. These economies are expanding faster than advanced markets, offering exciting opportunities.

How to Trade Emerging Markets ETFs

Investing in emerging markets can be approached through various avenues, each offering different levels of exposure and risk.

One of the most accessible methods is through Exchange-Traded Funds (ETFs), which provide diversified exposure to a basket of securities within these economies. ETFs are traded on major stock exchanges, offering liquidity and ease of access for investors. There are two ways to trade ETFs - one via a conventional stockbroker that connects you directly to the exchange. The second option is via CFDs (Contract for Difference), which are basically derivative instruments that enable you to speculate on the price of an asset without owning it. Switch Markets, for example, offers a huge variety of Exchange Traded Funds (ETFs), including some of the most popular emerging markets ETFs.

For example, the Vanguard FTSE Emerging Markets ETF (VWO), which is available on Switch Markets, seeks to track the performance of the FTSE Emerging Markets All Cap China A Inclusion Index, providing exposure to large, mid, and small-cap companies in emerging markets.

For investors seeking more direct exposure, purchasing individual stocks of companies based in emerging markets is also an option. However, this strategy requires thorough research and an understanding of the specific companies and industries within these markets.

It's important to note that investing directly in individual stocks can be riskier for a lot of reasons, especially market volatility and company-specific risks. As such, investing in emerging markets ETFs is the best way to expose yourself to these markets.

Top 10 Emerging Market ETFs to Consider

Now, let’s check some of the top ETFs available on our platform that focus on emerging markets.

These ETFs provide exposure to a variety of sectors, regions, and economies, giving you a well-rounded investment option.

1. iShares MSCI Emerging Markets ETF (EEM)

The iShares MSCI Emerging Markets ETF (EEM) is designed to provide investors with exposure to large and mid-capitalization companies across emerging markets. As of April, 2026, the fund's net asset value (NAV) stood at $46.7, with a 52-week range between $38.19 – $65.96.

Launched on April 7, 2003, EEM seeks to replicate the performance of the MSCI Emerging Markets Index, encompassing over 800 stocks from diverse sectors and regions. The fund's top holdings include Taiwan Semiconductor Manufacturing (10.50%), Tencent Holdings Ltd (4.53%), Alibaba Group Holding Ltd (2.24%), and Samsung Electronics Ltd (2.24%).

Over the past year, EEM has delivered an annual return of 1.94%, and it has a YTD return of 4.62% in 2025. The fund's expense ratio is 0.72%, which is higher than some of its peers.

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2. Vanguard FTSE Emerging Markets ETF (VWO)

The Vanguard FTSE Emerging Markets ETF (VWO) is designed to provide investors with broad exposure to emerging market economies by tracking the FTSE Emerging Markets All Cap China A Inclusion Index. This index encompasses large-, mid-, and small-cap companies across various sectors in emerging markets, including countries such as China, Brazil, Taiwan, and South Africa.

As of April 2026, VWO's market price is $53.82.

The fund's top holdings include prominent companies such as Taiwan Semiconductor Manufacturing Co., Tencent Holdings Ltd., and Alibaba Group Holding Ltd., providing exposure to leading firms in technology, consumer discretionary, and financial sectors.

VWO is favored by investors for its low expense ratio of 0.08%, making it a cost-effective option for accessing a diversified portfolio of emerging market stocks.

Over the past five years, VWO has delivered an average annual return of approximately 3.92% to 4.05%, reflecting the performance of emerging markets during this period.

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3. SPDR Portfolio Emerging Markets ETF (SPEM)

This ETF offers investors broad exposure to emerging market equities. As of April 2026, the fund's NAV was $36.96, with assets under management totaling approximately $16.09 billion.

The fund boasts a low gross expense ratio of 0.07%, making it a cost-effective option for those seeking to invest in emerging markets.

The fund held 3,072 securities, with the top 10 holdings accounting for 21.4% of the total assets. Notable holdings include Taiwan Semiconductor Manufacturing Co. Ltd. (9.17%), Tencent Holdings Ltd. (3.43%), and Alibaba Group Holding Ltd. (1.80%).

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4. iShares Core MSCI Emerging Markets ETF (IEMG)

The iShares Core MSCI Emerging Markets ETF (IEMG) offers investors exposure to a broad spectrum of large-, mid-, and small-cap companies across emerging markets. As of April 2026, the fund's net asset value was $69.75, with a 52-week range between $47.29 – $77.68. The ETF boasts a low expense ratio of 0.09%, making it a cost-effective option for diversifying into emerging markets.

Launched on October 18, 2012, IEMG seeks to replicate the performance of the MSCI Emerging Markets Investable Market Index. As of December 31, 2024, the fund held 2,807 securities, with top holdings including Taiwan Semiconductor Manufacturing (8.96%), Tencent Holdings Ltd (3.86%), and Alibaba Group Holding Ltd (1.91%).

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5. JPMorgan ActiveBuilders Emerging Markets Equity ETF (JEMA)

This is an actively managed fund that seeks to provide long-term capital appreciation by investing primarily in equity securities economically tied to emerging markets. The fund aims to outperform the MSCI Emerging Markets Index over time while maintaining similar risk characteristics.

As of April 2026, JEMA's top holdings included Taiwan Semiconductor Manufacturing Company (~13%), Samsung Electronics (~6-7%), and Tencent Holdings (~4-5%). The fund's sector allocation was notably concentrated in information technology, consumer discretionary, and financials.

In 2026, JEMA has delivered a return of 5.74%, slightly underperforming its benchmark, the MSCI Emerging Markets Index. The fund's performance was hindered by stock selection in China and an overweight allocation to the information technology sector. Conversely, stock selection in India and Argentina contributed positively to its performance.

As of April 2026, JEMA's market price was $51.98, reflecting a slight increase from the previous close. The fund's expense ratio is 0.33%, which is competitive within the actively managed emerging markets ETF category.

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6. Invesco Emerging Markets Sovereign Debt ETF (PCY)

The Invesco Emerging Markets Sovereign Debt ETF (PCY) offers investors exposure to U.S. dollar-denominated government bonds issued by emerging market countries. The fund seeks to track the DBIQ Emerging Market USD Liquid Balanced Index, which measures the potential returns of a theoretical portfolio of such bonds.

As of April 2026, PCY had a 30-day SEC yield of 6.27%, reflecting the income earned over the past 30 days, annualized as a percentage of the fund's net asset value. The fund's effective duration was 10.48 years, indicating its sensitivity to interest rate changes.

The ETF's portfolio is diversified across various emerging markets, with top holdings including government bonds from Kenya, El Salvador, and Pakistan. For instance, the Republic of Kenya's 7.25% bond maturing in 2028 constitutes 1.70% of the fund's assets.

The fund's expense ratio is 0.50%, which covers management fees and other operating expenses.

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7. KraneShares CSI China Internet ETF (KWEB)

This ETF offers investors exposure to China's burgeoning internet sector by tracking the CSI Overseas China Internet Index. This index comprises China-based companies primarily engaged in internet and internet-related activities, including sectors such as e-commerce, social networking, and online gaming. Notably, KWEB focuses on companies listed outside mainland China, particularly those on the Hong Kong Stock Exchange, NASDAQ, and the New York Stock Exchange.

As of April 2026, KWEB manages net assets totaling approximately $6.06 billion. The fund's top holdings include prominent firms such as Tencent Holdings Ltd., Alibaba Group Holding Ltd., and Meituan, which together represent a significant portion of the portfolio. The ETF is diversified across various sectors, with substantial allocations in communication services and consumer cyclical industries.

KWEB's expense ratio stands at 0.70%, reflecting the annual cost to investors for fund management and operational expenses. The ETF's performance is closely tied to the dynamics of China's internet industry, which has experienced rapid growth due to increasing internet penetration and rising consumer spending.

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8. iShares JP Morgan USD Emerging Markets Bond ETF (EMB)

The iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) offers investors exposure to U.S. dollar-denominated government bonds issued by emerging market countries. By tracking the J.P. Morgan EMBI Global Core Index, EMB provides access to sovereign debt from over 30 emerging market nations, facilitating diversification within a single fund.

As of April 2026, EMB manages approximately $14 billion in net assets. The fund's portfolio comprises 639 holdings, with significant allocations to countries such as Turkey, Saudi Arabia, Brazil, Mexico, and the Philippines. These top issuers represent a substantial portion of the fund's investments.

EMB has an expense ratio of 0.39%. The fund's 30-day SEC yield stands at 5.89%, indicating the potential income investors might receive based on the current portfolio and market conditions. Over the past year, EMB has delivered a total return of 6.11%, though its three-year and five-year annualized returns are -1.29% and -0.21%, respectively.

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9. Schwab Emerging Markets Equity ETF (SCHE)

The Schwab Emerging Markets Equity ETF (SCHE) is designed to replicate the performance of the FTSE Emerging Index. This ETF offers investors a cost-effective avenue to access a diversified portfolio within these burgeoning economies.

As of April 2026, 2025, SCHE manages assets totaling approximately $12 billion. The fund's portfolio includes 2,064 holdings, with the top three holdings collectively representing nearly 17% of the fund's assets.

SCHE is recognized for its competitive expense ratio of 0.11%, making it an attractive option for cost-conscious investors. Over the past year, the fund has delivered a market price return of 10.59%, with a five-year annualized return of 2.39%.

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10. Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR)

The Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) basically tracks the CSI 300 Index. This index comprises the 300 largest and most liquid stocks listed on the Shanghai and Shenzhen Stock Exchanges, representing a broad spectrum of China's economy.

As of January April 2026, ASHR manages approximately $1.43 billion in total net assets, with 92.75 million shares outstanding. The fund's top holdings include prominent companies such as Kweichow Moutai Co., Ltd., Contemporary Amperex Technology Co., Ltd., and Ping An Insurance (Group) Company of China, Ltd. These holdings provide investors with exposure to leading firms across various sectors of China's economy.

ASHR has an expense ratio of 0.65%, which is competitive within the realm of China-focused ETFs. Over the past year, the fund has delivered a return of approximately 15.45%.

It's important to note that investing in emerging markets, particularly in single-country funds like ASHR, can be subject to higher volatility and risks, including political instability, regulatory changes, and currency fluctuations.

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Key Reasons to Trade Emerging Markets ETFs

Emerging markets ETFs offer investors a unique opportunity to tap into some of the world’s fastest-growing economies. While they come with higher risk, they also provide access to powerful long-term growth drivers that can enhance a diversified portfolio.

1. Strong Growth Potential - Emerging markets often experience faster economic growth compared to developed economies, offering investors the potential for higher long-term returns.
2. Diversification Benefits - Adding emerging markets ETFs can help diversify a portfolio by providing exposure to different economies, industries, and currencies.
3. Expanding Middle Class - Rising incomes and a growing middle class in emerging economies are driving increased consumption and economic expansion.
4. Undervalued Opportunities - Many emerging market assets trade at lower valuations compared to developed markets, creating potential opportunities for investors.
5. Exposure to Key Global Trends - Emerging markets are at the center of major trends such as urbanization, digital adoption, and infrastructure development.
6. Currency Appreciation Potential - As emerging economies grow, their currencies may strengthen over time, potentially boosting returns for foreign investors.
7. Access to Hard-to-Reach Markets - ETFs provide an easy and cost-effective way to gain exposure to markets that may otherwise be difficult to access directly.

Why Choose Switch Markets?

At Switch Markets, we make investing in emerging markets simple and accessible. Our platform offers:

Investing in emerging markets can be a rewarding venture, especially when approached with the right tools and knowledge. Choosing ETFs allows you to simplify the process while gaining diversified exposure to some of the world’s fastest-growing economies.

Ready to get started? Sign up with Switch Markets today and explore the top emerging market ETFs we offer. Your journey to smarter investing begins here.