{"id":512140,"date":"2023-11-09T11:37:38","date_gmt":"2023-11-09T11:37:38","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=512140"},"modified":"2026-02-09T14:54:06","modified_gmt":"2026-02-09T14:54:06","slug":"emerging-markets-etfs","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/share-trading\/invest-in\/exchange-traded-funds-etfs\/emerging-markets-etfs","title":{"rendered":"Emerging markets ETFs"},"content":{"rendered":"

Emerging markets have been a somewhat unloved sector over the last decade, but the world is changing and this could benefit these regions. Overall, emerging economies account for 50% of global GDP and 66% of global GDP growth in the last 10 years. One of the best ways to capitalise on possible future growth in these areas is by investing in an emerging market exchange-traded fund (ETF)<\/a>.<\/p>

Best emerging markets ETFs in the UK<\/h2>

No one can predict the future, so it\u2019s impossible to say what will be the best emerging markets ETF in the coming years. However, we can gain some useful insights from the past, and below are the best-performing emerging markets ETFs from recent years.<\/p>

Table: sorted by 5-year performance based on data from JustETF.com to 3 July<\/div>
Icon<\/th>Fund<\/th>5-year performance<\/th>YTD performance (to 3 July 2024)<\/th>Link to invest<\/th><\/tr><\/thead>
\"SPDR<\/td>SPDR MSCI Emerging Markets Small Cap UCITS ETF (EMSM)<\/td>57.82%<\/td>8.27%<\/td>Invest with HL<\/a>Capital at risk<\/td><\/tr>
\"iShares<\/td>iShares MSCI Emerging Markets Small Cap UCITS ETF (IEMS)<\/td>54.28%<\/td>6.98%<\/td>Invest with HL<\/a>Capital at risk<\/td><\/tr>
\"WisdomTree<\/td>WisdomTree Emerging Markets SmallCap Dividend UCITS ETF (DGSE)<\/td>38.80%<\/td>6.11%<\/td>Invest with InvestEngine<\/a>Capital at risk<\/td><\/tr>
\"Xtrackers<\/td>Xtrackers MSCI Emerging Markets ESG Screened UCITS ETF 1C (XDEX)<\/td>38.48%<\/td>7.03%<\/td>Invest with ii<\/a>Capital at risk<\/td><\/tr>
\"iShares<\/td> iShares Edge MSCI EM Value Factor UCITS ETF USD(Acc) (EMVL)<\/td>36.66%<\/td>15.41%<\/td>Capital at risk<\/td><\/tr><\/table>

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you\u2019re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.<\/p><\/div><\/article>

What are emerging markets ETFs?<\/h2>

This is simply an ETF that tracks either a single or multiple emerging markets. In a similar way that you can use ETFs to invest in developed economies like the UK and the US, emerging market ETFs allow you to invest in the potential growth of these regions.<\/p>

Although there\u2019s no dictionary definition for an emerging market, it tends to refer to the 24 countries that make up the MSCI Emerging Market Index. This includes countries such as:<\/p>