Best Emerging Market ETFs (2026)

Which emerging-markets fund to hold — 10 funds ranked on cost, yield, return, risk and ETFValuer's overall grade.

Updated July 25, 2026

Every figure on this page is recalculated from market data each day, so the ranking reflects current conditions rather than whenever this page was written. Educational content — not financial advice.

Top Picks Right Now

#1
EMXC
iShares MSCI Emerging Markets ex China ETF
B+ 78.6/100
  • best risk-adjusted return (Sharpe 1.53)
  • strongest 3-year return at +83.0%
#2
IEMG
iShares Core MSCI Emerging Markets ETF
B+ 75.4/100
  • scores 75.4 on the overall model (grade B+)
#3
AVEM
Avantis Emerging Markets Equity ETF
B 72.3/100
  • scores 72.3 on the overall model (grade B)

Ranked by ETFValuer's overall score. Recalculated every day from live market data — these positions change as the underlying numbers move.

At a Glance

Cheapest
VWO
0.06%
Highest yield
FNDE
3.78%
Best risk-adjusted
EMXC
Sharpe 1.53
Largest
VWO
$163.3B
Shallowest drawdown
SCHE
-17.1%

Each superlative is measured within this group of 10 funds, not across the whole market.

All 10 Funds Ranked

FundCategoryCostYield1Y3YVolatilityMax DDSharpeAUMScoreGrade
1 EMXCiShares MSCI Emerging Markets ex China ETFEmerging Markets0.25%1.88%+46.2%+83.0%26.9%-19.1%1.53$26.1B78.6B+
2 IEMGiShares Core MSCI Emerging Markets ETFEmerging Markets0.09%1.48%+27.4%+61.1%23.2%-17.2%0.96$160.7B75.4B+
3 AVEMAvantis Emerging Markets Equity ETFEmerging Markets0.33%1.82%+28.4%+69.4%23.4%-18.0%1.00$26.2B72.3B
4 FNDESchwab Fundamental Emerging Markets Equity ETFEmerging Markets0.39%3.78%+22.6%+63.0%16.1%-18.4%1.10$9.2B70.0B
5 EEMiShares MSCI Emerging Markets ETFEmerging Markets0.72%1.18%+29.3%+62.1%24.0%-17.3%1.01$30.3B68.8B
6 DFEMDimensional Emerging Markets Core Equity 2 ETFEmerging Markets0.39%1.85%+25.5%+59.7%22.0%-18.1%0.93$9.3B66.2B
7 VWOVanguard Emerging Markets Stock Index FundEmerging Markets0.06%1.93%+15.8%+47.0%17.4%-17.4%0.62$163.3B65.5B
8 SPEMState Street SPDR Portfolio Emerging Markets ETFEmerging Markets0.07%2.53%+16.5%+49.8%17.5%-17.6%0.66$17.3B63.5C
9 SCHESchwab Emerging Markets Equity ETFEmerging Markets0.06%2.66%+16.3%+48.8%17.8%-17.1%0.64$12.5B62.9C
10 DGSWisdomTree Emerging Markets SmallCap Dividend FundEmerging Markets0.58%3.75%+12.4%+37.3%17.3%-19.3%0.43$1.8B48.5D

Max DD is the deepest peak-to-trough fall over the measurement window. Sharpe ratio measures return per unit of volatility — higher is better. Every figure is recalculated daily.

What Makes a Good Fund Here

Emerging-market funds differ sharply in how much China they hold and whether they include South Korea and Taiwan as emerging or developed. Two EM funds can therefore behave quite differently despite the shared label.

The ETFValuer score blends trailing return, risk-adjusted return, expense ratio, maximum drawdown, fund size and volatility, each percentile-ranked against the full tracked universe, into a single 0-100 figure graded A+ to F. It is a systematic summary of past data, not a forecast — read it alongside the individual columns rather than instead of them.

Head-to-Head Comparisons

Full metric-by-metric breakdowns for the closest calls in this group.

Frequently Asked Questions

What is the best emerging markets ETF?

EMXC leads the 10 EM funds tracked with a score of 78.6 (B+). VWO charges the least at 0.06%.

Are emerging market ETFs riskier?

Yes — they add currency risk, political risk and weaker shareholder protections on top of normal equity risk. The volatility and drawdown columns above quantify how that has played out over the trailing period.

Compare any of these funds directly

Side-by-side metrics, holdings overlap and return correlation for any pair.

Other Rankings