Jasmine Birtles
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The 5 Best Emerging Markets ETFs to Buy in 2026 (Simple Guide for UK Investors)
Ruby Layram
23rd Dec 2025
Emerging markets are one of those investing topics that can feel over your head, but they shouldn’t. These are countries like China, South Korea, Chile and more that are growing fast, industrialising, increasing consumer demand, and often bouncing back quicker than developed markets.
In fact, in 2025, some emerging market stocks and funds significantly outpaced the U.S. market, showing investors that this part of the world still has real growth potential.
If you’re thinking about spreading your wings beyond the UK and U.S., one of the easiest ways to do that is with emerging markets ETFs, simple baskets of stocks that track entire countries or regions.
Here are 5 popular emerging markets ETFs worth considering for 2026.
What Is an Emerging Markets ETF?
Before we dive in, a quick reminder: an ETF is like a ready-made investment basket. Instead of buying 10 or 100 individual stocks, you buy one ETF that owns them all for you.
Emerging markets ETFs are a low-cost way to get exposure to developing economies, often with thousands of companies inside one fund.
1. Vanguard FTSE Emerging Markets ETF (VWO)
Why it’s popular: One of the broadest and cheapest ways to own emerging market stocks.
- Tracks the FTSE Emerging Markets All Cap China A Inclusion Index
- Huge diversification (thousands of stocks)
- Very low cost, usually under 0.10% annual fees.
Good for: Long-term buy-and-hold investors who want the “whole world except the West.”
Best bit: China, India, and Taiwan all make up big slices of this ETF, giving you exposure to the biggest emerging markets.
Your money is at risk.
2. iShares Core MSCI Emerging Markets ETF (IEMG)
Best overall core holding: Similar to VWO but includes small-cap companies too.
- Tracks the MSCI Emerging Markets Investable Market Index
- Covers large, mid and small companies
- Extremely liquid and well-established
Good for: Investors who want the broadest possible exposure to the entire emerging market universe.
Worth knowing: Large economies like China, India, South Korea and Taiwan tend to dominate the holdings.
Your money is at risk.
3. Franklin FTSE South Korea ETF (FLKR)
Why this one stands out: South Korea has been a strong emerging market performer recently, led by tech giants like Samsung and SK Hynix.
- Focuses on the South Korean stock market
- Good tech and consumer exposure
- Lowish fees for a single-country ETF
Good for: Investors who want regional exposure instead of broad global EM.
South Korea’s market was one of the best performers in 2025, making this an intriguing regional play.
Your money is at risk.
4. VanEck India Growth Leaders ETF (GLIN)
India is often dubbed “the future growth engine”, and this ETF gives you more concentrated exposure to Indian companies.
- Tracks leading companies in India
- Benefits from rapid consumer demand and economic expansion
Good for: Investors bullish on India’s long-term story but who don’t want a super-wide emerging markets basket.
Your money is at risk.
5. WisdomTree Emerging Markets High Dividend Fund (DEM)
A slightly different flavour: Instead of pure growth, this ETF focuses on companies that pay higher dividends.
- Holds a mix of emerging market stocks with above-average dividends
- Lower turnover than growth-only funds
Good for: Investors who want income from emerging markets and growth potential.
Also read: The best growth ETFs
Your money is at risk.
Tips Before You Buy Emerging Markets ETFs
Investing in emerging markets can be exciting, but it’s not without risks. Here’s how to do it smartly:
1. Diversify Within Your Portfolio
Emerging markets should be a slice, not the whole pie, of your portfolio. A typical range is 5–15% of your total investments, depending on your risk tolerance.
2. Understand Regional Risks
Different countries have different economic and political risks. For example, currency swings, trade tensions or government policy changes can have a bigger impact than in developed markets.
3. Watch Costs
ETFs are generally low-cost, but fees do matter over the long term. Always check the expense ratio before you buy.
4. Think Long Term
Emerging markets are often more volatile. That means short-term dips are normal, but long-term investors can be rewarded for staying patient.
Final Thoughts
Emerging markets ETFs are a great way to diversify your portfolio beyond the UK and U.S., tapping into fast-growing economies around the world.
Whether you prefer broad exposure like VWO and IEMG, or more specialised plays like South Korea (FLKR) or India (GLIN), there’s something for every type of investor.
And remember: this isn’t about chasing the next hot thing. It’s about smart, diversified exposure with a long-term mindset, exactly what beginner investors should be focused on heading into 2026.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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