Emerging markets ETFs give investors a way to invest in companies from developing economies such as China, India, Brazil, Taiwan and South Africa through a single fund.
This guide looks at five of the top emerging markets ETFs on InvestEngine in 2026, based on the most held emerging markets ETFs on the platform. It explains what emerging markets ETFs are, how they work, what each ETF gives investors exposure to and the main risks to consider.
Capital at risk. The value of your investments can go down as well as up, and you may get back less than you invest. This article is for general information only and is not personal advice.
Top emerging markets ETFs for UK investors: quick answer
Here are five of the top emerging markets ETFs on InvestEngine.*
| Emerging markets ETF | Ticker | Suitable for investors looking for |
|---|---|---|
| Vanguard FTSE Emerging Markets ETF | VFEG | Broad emerging markets exposure with accumulating dividends |
| iShares MSCI Emerging Markets IMI ETF | EMIM | Full emerging markets exposure across large, mid and small-cap companies |
| Franklin FTSE India ETF | FRIN | Focused exposure to Indian companies |
| Vanguard FTSE Emerging Markets ETF | VFEM | Broad emerging markets exposure with distributing dividends |
| HSBC MSCI Emerging Markets ETF | HMEF | Low-cost exposure to large and mid-sized emerging markets companies |
*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 August 2025 and August 2026.
What are emerging markets ETFs?
Emerging markets ETFs are investment funds that hold shares in companies from developing economies. These can include countries such as China, India, Brazil, South Africa, Taiwan and other markets outside the main developed economies.
These ETFs often cover sectors such as:
- Banking and financial services
- Energy and natural resources
- Technology and semiconductors
- Telecoms
- Consumer goods
- Manufacturing and infrastructure
Instead of buying individual emerging market shares, investors can buy one ETF and gain exposure to a basket of companies across different countries, sectors and currencies.
Why emerging markets ETFs are gaining attention in 2026
Emerging markets are in focus as investors look beyond the usual US and European stocks. These markets can offer access to faster-growing economies, younger populations and expanding consumer markets.
The main reasons investors choose emerging markets ETFs
- Growth potential: Some emerging economies are growing faster than developed markets, helped by rising consumer demand, infrastructure investment and industrialisation.
- Global diversification: Emerging markets ETFs can add exposure beyond the US, UK and Europe.
- Commodity exposure: Some emerging economies are major producers of energy, metals and raw materials.
- Technology adoption: Emerging markets can benefit from digital payments, mobile banking, e-commerce and semiconductor demand.
- Valuation differences: Some emerging market shares may trade at lower valuations than developed market shares.
- ISA and SIPP eligibility: Eligible ETFs can be held in tax-efficient accounts such as Stocks and Shares ISAs and SIPPs.
This does not mean emerging markets ETFs are low risk. They can be more volatile than developed market ETFs and may be affected by currency moves, politics, regulation and liquidity.
How to choose an emerging markets ETF
The right emerging markets ETF depends on the countries, sectors and company sizes you want exposure to, as well as how much risk you are comfortable taking.
| For investors seeking… | They might consider… | Example ETFs |
|---|---|---|
| Broad emerging markets exposure | Diversified EM ETFs | VFEG, VFEM, HMEF |
| Full-market exposure | Large, mid and small-cap EM ETFs | EMIM |
| India exposure | Single-country India ETFs | FRIN |
| Lower ongoing charges | Passive ETFs with lower TERs | HMEF, VFEM, EMIM |
| Accumulating dividends | Accumulating ETFs | VFEG, EMIM, FRIN |
| Income payments | Distributing ETFs | VFEM, HMEF |
This table is not a recommendation. It simply shows how different emerging markets ETFs can play different roles in a portfolio.
The 5 top emerging markets ETFs in 2026
There are many emerging markets ETFs available, so it helps to understand how each fund approaches the theme.
Some ETFs offer broad exposure across many developing economies, while others focus on specific countries, company sizes or dividend types.
1. Vanguard FTSE Emerging Markets ETF (VFEG)
Vanguard FTSE Emerging Markets ETF (VFEG) 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.
Provider: Vanguard
Strategy: Passive ETF tracking the FTSE Emerging Index
Why investors might consider it
- Offers a straightforward way to add emerging markets exposure
- Spreads investments across a large number of companies, countries and sectors
- Uses an accumulating dividend structure
| Key detail | VFEG |
|---|---|
| Launched | 24 September 2019 |
| Fund size | £4.45 billion |
| Ongoing charges | 0.22% |
| Dividend type | Accumulating |
| Region focus | Broad emerging markets, with large weights in China, Taiwan, India and Brazil |
Source: Bloomberg. Correct as of 13/08/26.
Useful for: investors looking for broad emerging markets exposure with accumulating dividends.
2. iShares MSCI Emerging Markets IMI ETF (EMIM)
iShares MSCI Emerging Markets IMI ETF (EMIM) tracks the MSCI Emerging Markets IMI Index.
It physically holds a wide mix of large, mid and small-cap companies, giving investors broad coverage of emerging markets across a range of sectors.
Provider: iShares (BlackRock)
Strategy: Passive ETF tracking the MSCI Emerging Markets IMI Index
Why investors might consider it
- Covers large, mid and small-cap emerging market companies
- Offers broad diversification across countries and sectors
- Has a low ongoing charge for broad emerging markets exposure
| Key detail | EMIM |
|---|---|
| Launched | 30 May 2014 |
| Fund size | £33.46 billion |
| Ongoing charges | 0.18% |
| Dividend type | Accumulating |
| Region focus | Full emerging markets exposure across company sizes |
Source: Bloomberg. Correct as of 13/08/26.
Useful for: investors looking for wide emerging markets exposure across large, mid and small-cap companies.
3. Franklin FTSE India ETF (FRIN)
Franklin FTSE India ETF (FRIN) tracks the FTSE India Index.
It gives investors focused exposure to large and mid-cap Indian companies across sectors such as technology, finance and consumer goods.
Provider: Franklin Templeton
Strategy: Passive ETF tracking the FTSE India Index
Why investors might consider it
- Provides focused exposure to India’s stock market
- Covers a range of large and mid-cap Indian companies
- May suit investors who want a specific allocation to India rather than broad emerging markets exposure
| Key detail | FRIN |
|---|---|
| Launched | 25 June 2019 |
| Fund size | £1.62 billion |
| Ongoing charges | 0.19% |
| Dividend type | Accumulating |
| Region focus | India, large and mid-cap companies |
Source: Bloomberg. Correct as of 13/08/26.
Useful for: investors looking for focused India exposure.
4. Vanguard FTSE Emerging Markets ETF (VFEM)
Vanguard FTSE Emerging Markets ETF (VFEM) aims to replicate the performance of the FTSE Emerging Index.
It offers diversified exposure to large and mid-sized companies from emerging markets across the globe.
Provider: Vanguard
Strategy: Passive ETF tracking the FTSE Emerging Index
Why investors might consider it
- Offers broad emerging markets exposure
- Has a low ongoing charge compared with many emerging markets ETFs
- Uses a distributing dividend structure, paying income quarterly
| Key detail | VFEM |
|---|---|
| Launched | 2012 |
| Fund size | £4.45 billion |
| Ongoing charges | 0.17% |
| Dividend type | Distributing quarterly |
| Region focus | Large and mid-sized company stocks in emerging markets |
Source: Bloomberg. Correct as of 13/08/26.
Useful for: investors looking for broad emerging markets exposure with income paid out.
5. HSBC MSCI Emerging Markets ETF (HMEF)
HSBC MSCI Emerging Markets ETF (HMEF) invests in a wide range of large and mid-sized companies in emerging markets across the globe.
It gives investors exposure to countries including China, India, Brazil and South Africa.
Provider: HSBC
Strategy: Passive ETF tracking the MSCI Emerging Markets Index
Why investors might consider it
- Provides broad exposure to large and mid-sized emerging markets companies
- Has one of the lowest ongoing charges among the ETFs covered here
- May suit investors looking for long-term emerging markets exposure with income paid out
| Key detail | HMEF |
|---|---|
| Launched | 5 September 2011 |
| Fund size | £4.34 billion |
| Ongoing charges | 0.15% |
| Dividend type | Distributing quarterly |
| Region focus | Global coverage with a focus on emerging markets and Asia ex Japan |
Source: Bloomberg. Correct as of 13/08/26.
Useful for: investors looking for low-cost broad emerging markets exposure.
Comparing the top 5 emerging markets ETFs side by side
Each ETF offers a different route into emerging markets investing. Some provide broad exposure across many countries, while others focus on India, company size or dividend type.
| ETF name | Ticker | Strategy | TER | Dividend type | Launched | Region focus | Fund size |
|---|---|---|---|---|---|---|---|
| Vanguard FTSE Emerging Markets | VFEG | Passive | 0.22% | Accumulating | 24 Sep 2019 | Broad EM — China, Taiwan, India, Brazil | £4.45bn |
| iShares MSCI Emerging Markets IMI | EMIM | Passive | 0.18% | Accumulating | 30 May 2014 | Full EM coverage across cap sizes | £33.46bn |
| Franklin FTSE India | FRIN | Passive | 0.19% | Accumulating | 25 Jun 2019 | India only | £1.62bn |
| Vanguard FTSE Emerging Markets | VFEM | Passive | 0.17% | Distributing quarterly | 2012 | Emerging markets and Asia ex Japan | £4.45bn |
| HSBC MSCI Emerging Markets | HMEF | Passive | 0.15% | Distributing quarterly | 5 Sep 2011 | Global coverage with focus on EM and Asia ex Japan | £4.34bn |
Source: Bloomberg. Correct as of 13/08/26.
More emerging markets ETFs
The top 5 list covers some of the most popular emerging markets ETFs on InvestEngine, but there are other funds that may suit different goals.
iShares MSCI Emerging Markets ETF (SEMA)
iShares MSCI Emerging Markets ETF (SEMA) is a broad MSCI emerging markets tracker that covers large and mid-cap stocks.
It is less comprehensive than EMIM, which also includes small-cap companies, but still offers wide emerging markets exposure.
iShares MSCI India ETF (IIND)
iShares MSCI India ETF (IIND) is another ETF focused on Indian shares.
It follows MSCI’s version of the Indian market, giving slightly different stock weightings and sector tilts compared with Franklin’s FRIN.
L&G Asia Pacific ex-Japan Equity ETF (LGAG)
L&G Asia Pacific ex-Japan Equity ETF (LGAG) offers regional exposure to Asia Pacific excluding Japan.
It includes emerging markets such as India and China, alongside developed markets such as Australia.
Risks of investing in emerging markets ETFs
Emerging markets ETFs can offer growth and diversification, but they also come with risks.
Key risks to consider
- Political risk: Elections, policy changes, regulation and trade disputes can move markets quickly.
- Currency risk: A stronger pound or dollar can reduce returns from overseas investments.
- Liquidity risk: Some emerging markets trade less smoothly than developed markets, which can increase buying and selling costs.
- Concentration risk: Some ETFs are heavily weighted towards a few countries, companies or sectors.
- Volatility: Emerging markets can rise quickly, but they can also fall sharply when conditions change.
- Governance risk: Accounting standards, regulation and shareholder protections can vary between markets.
- Commodity sensitivity: Some emerging economies are affected by changes in energy, metals or raw material prices.
These risks do not mean emerging markets ETFs are unsuitable for everyone. They do mean investors should treat them as one part of a broader, balanced portfolio.
Key factors to consider when choosing an emerging markets ETF
Not all emerging markets ETFs are built the same. Before investing, it can help to look at five areas.
1. Look at country exposure
Some funds put a lot of weight on China, India or Taiwan, while others spread exposure across a wider mix of regions such as Latin America, Africa and Eastern Europe.
Country exposure can make a big difference to performance, risk and currency movements.
2. Understand sector exposure
Banks, energy companies, technology firms and semiconductor businesses often make up large parts of emerging markets ETFs.
If you already hold a lot of technology exposure elsewhere, for example, you may want to check whether an emerging markets ETF increases that concentration.
3. Compare company size exposure
Some ETFs focus on large and mid-sized companies, while others include small-cap companies too.
Small-cap exposure can increase diversification, but may also add volatility and liquidity risk.
4. Compare ongoing charges
Even small differences in charges can affect returns over time.
Compare the TER or OCF to see whether the fund offers good value for its strategy.
5. Check how it fits with your portfolio
Emerging markets ETFs can be useful for global diversification, but they should still fit with your overall portfolio.
Consider whether the ETF adds useful exposure, increases concentration or overlaps with funds you already hold.
How to buy emerging markets ETFs with InvestEngine
InvestEngine is a UK-based ETF investing platform, authorised and regulated by the Financial Conduct Authority, built for long-term investors who want to create DIY ETF portfolios.
With InvestEngine, you can buy and sell emerging markets ETFs with 0% dealing fees and 0% platform fee on DIY portfolios. ETF costs apply.
You can invest through:
- A Stocks and Shares ISA
- A Self-Invested Personal Pension
- A General Investment Account
- A Business Investment Account
How it works
- Create an InvestEngine account
- Choose your account type — ISA, SIPP, GIA or Business Account
- Search for the emerging markets ETF you want
- Choose how much to invest
- Set up a one-off investment or a regular Savings Plan
Why use InvestEngine?
✅ 0% dealing fees and 0% platform fee on DIY portfolios
Buy and sell emerging markets ETFs with 0% dealing fees and 0% platform fee on DIY portfolios. ETF costs apply.
✅ Wide ETF choice
Access the emerging markets ETFs covered in this article, plus a wide range of other ETFs across markets, sectors and themes.
✅ Regular investing
Set up a Savings Plan to invest regularly. Just choose how often and how much you want to invest.
✅ Your choice of account
Invest through an ISA, SIPP, GIA or Business Account.
Start investing in emerging markets ETFs with InvestEngine
Capital at risk. T&Cs apply.
FAQs about emerging markets ETFs
What are the top emerging markets ETFs for UK investors?
The right emerging markets ETF depends on your goals, risk appetite and investment timeframe. Popular emerging markets ETFs on InvestEngine include Vanguard FTSE Emerging Markets (VFEG), iShares MSCI Emerging Markets IMI (EMIM), Franklin FTSE India (FRIN), Vanguard FTSE Emerging Markets (VFEM) and HSBC MSCI Emerging Markets (HMEF).
What is an emerging markets ETF?
An emerging markets ETF is an exchange-traded fund that invests in a basket of companies from developing economies. These may include countries such as China, India, Brazil, Taiwan, South Africa and others.
Are emerging markets ETFs risky?
Yes, emerging markets ETFs can be risky. They may be more volatile than developed market ETFs and can be affected by currency movements, political changes, regulation, liquidity and commodity prices.
Can you buy emerging markets ETFs in a Stocks and Shares ISA?
Yes. Eligible emerging markets ETFs can be held in a Stocks and Shares ISA. Investing through an ISA can help protect returns from UK capital gains tax and dividend tax.
Can you buy emerging markets ETFs in a SIPP?
Yes. Eligible emerging markets ETFs can be held in a Self-Invested Personal Pension, or SIPP. SIPPs are designed for long-term retirement investing and come with specific rules on access, tax relief and withdrawals.
Does InvestEngine charge dealing fees for emerging markets ETFs?
InvestEngine charges 0% dealing fees for buying and selling ETFs. DIY portfolios also have 0% platform fees. ETF costs apply.
Are emerging markets ETFs suitable for beginners?
Emerging markets ETFs may be suitable for some beginners, but only if they understand the risks. They can provide diversified exposure to developing economies, but they can still fall in value and may be more volatile than broader developed market ETFs.
In summary
Emerging markets ETFs give UK investors a way to invest in developing economies while spreading exposure across companies, sectors and countries.
Some of the top emerging markets ETFs on InvestEngine include VFEG for broad accumulating exposure, EMIM for large, mid and small-cap exposure, FRIN for India exposure, VFEM for broad distributing exposure and HMEF for low-cost broad emerging markets exposure.
With InvestEngine, you can invest in emerging markets ETFs through an ISA, SIPP, GIA or Business Account, with 0% dealing fees and 0% platform fee on DIY portfolios. ETF costs apply.
Emerging markets can offer long-term growth and diversification, but they can also be volatile. Before investing, make sure the ETF fits your goals, risk appetite and wider portfolio.
Capital at risk. The value of your investments with InvestEngine can go down as well as up. You may get back less than you invest. Past performance is not a reliable indicator of future results.
ETF costs apply. This communication is for general information only and does not constitute personal advice.
Tax treatment depends on your personal circumstances and may change in future.