8 Best Emerging-Market ETFs to Buy for 2026

Warren Buffett famously said to “never bet against America,” and that advice has held up for more than a decade. Investors who avoided U.S. stocks during that period likely trailed the broad market. Those who actively bet against them outside of brief downturns in 2008 or 2022 did even worse.

Even so, Buffett’s late business partner, Charlie Munger, took a broader view of global markets. He often highlighted the opportunities he saw in China. His positions in Alibaba Group Holdings Ltd. (ticker: BABA) produced mixed results, while his early investment in BYD Company Ltd. (OTC: BYDDY) became a major long-term winner for Berkshire Hathaway Inc. (BRK.A, BRK.B).

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Munger’s interest in China shows why investors continue to look at emerging markets. These economies are still developing their industrial base and consumer sectors, which can lead to stronger long-term growth than what is available in mature markets. The trade-off is higher volatility and less stable market cycles, but the potential for new sources of return can be greater than in fully developed economies.

“The term ’emerging markets’ refers to countries that are in the middle stage of their development, only recently industrialized, or just opened their markets up to foreign investment,” explains Brendan Ahern, chief investment officer at KraneShares. “The largest examples include China, India and Brazil, with some other examples being Turkey, Thailand and Indonesia.”

Some emerging-market stocks are available through American depositary receipts, but coverage is incomplete. A more comprehensive way to access these companies is through an emerging-market exchange-traded fund (ETF), which can provide diversified exposure.

“Emerging-market ETFs present an easy, diversified, low-transaction-cost and low-friction path to invest in emerging-market countries using a brokerage account or with the help of a financial advisor,” says Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors.

Here are eight of the best emerging-market ETFs to buy for the coming year:

Vanguard FTSE Emerging Markets ETF (VWO)

“When selecting emerging-market ETFs, you should consider whether you want broad exposure to multiple developing economies around the globe, or a focus on a specific country,” Schulman says. For a broad approach, consider VWO. This low-cost Vanguard ETF tracks the FTSE Emerging Markets All Cap China A Inclusion Index, which encompasses over 6,000 emerging-market stocks.

VWO keeps costs low because it uses market-capitalization weighting. Larger companies take up more space in the portfolio as they grow, which reduces turnover and helps keep trading costs down. With no active management overlay, Vanguard is able to offer the fund at a 0.07% expense ratio. It also comes in mutual fund form as the Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX).

iShares Core MSCI Emerging Markets ETF (IEMG)

“A growing global middle-class population within emerging-market countries could fuel economic expansion at a multiple of general global GDP growth as long as there is enough support,” Schulman explains. Another way to bet broadly on emerging markets at low cost is via IEMG. This emerging-market ETF serves as BlackRock’s counterpart to VWO and charges a slightly higher 0.09% expense ratio.

Although the two ETFs hold similar countries and many of the same companies, their construction differs. IEMG tracks the MSCI Emerging Markets Investable Market Index, while VWO uses an FTSE benchmark. That distinction can matter for investors who use tax-loss harvesting, since the wash sale rule applies only when two positions are considered substantially identical.

KraneShares CSI China Internet ETF (KWEB)

“We believe it is also important for investors to understand that not all emerging markets are created equal,” Ahern says. “In particular, China is unique within emerging markets due to its size as the second-largest economy in the world, and its performance characteristics.” This is reflected in KraneShares’ flagship ETF, KWEB, which has over $9.1 billion in assets under management.

KWEB is not a broad-country emerging-market ETF. It drills down into China’s internet and e-commerce sectors via the CSI Overseas China Internet Index. Alibaba is a top holding, along with Tencent Holdings Ltd. (0700.HK) and Baidu Inc. (9888.HK). KWEB’s high volatility and options chain also make it popular with active traders, especially when it comes to selling covered calls for income.

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

“Out of the 300 companies in the CSI 300 index, only 78 are dual-listed in Hong Kong, and these dual-listed H-shares account for about 32.5% of the total market cap within the index,” explains Aram Babikian, head of Xtrackers sales, U.S. onshore, wealth at DWS Group. “ASHR offers access to the domestic companies that many foreign investors are restricted from directly purchasing.”

Investors who rely only on H-shares (shares of mainland China companies that are traded on the Hong Kong Stock Exchange or other foreign exchanges) can miss many of China’s largest and most influential A-shares companies, which trade on China’s stock exchanges. Examples include Kweichow Moutai Co. Ltd. (600519.SS), known for its premium spirits, and Ping An Insurance Group Co. of China Ltd. (601318.SS), one of the country’s biggest financial services firms. ASHR therefore provides more complete exposure than older China ETFs that focus only on H-shares.

[Read: 7 Best Europe ETFs to Buy for 2025]

VanEck India Growth Leaders ETF (GLIN)

“India remains one of the most compelling opportunities within emerging markets, supported by a powerful combination of structural reforms, resilient domestic demand and an increasingly competitive manufacturing sector,” says John Patrick Lee, product manager at VanEck. ” Government-led initiatives in digital infrastructure, tax reform and ease of doing business have laid the groundwork.”

GLIN is different from many single-country ETFs that rely on simple market-cap weighting. The fund tracks the more sophisticated MarketGrader India All-Cap Growth Leaders Index, which selects 80 Indian companies using a quantitative process focused on growth and quality. Each stock’s maximum weight is capped at 5% to limit concentration risk. The ETF charges a 0.76% expense ratio.

VanEck Vietnam ETF (VNM)

“Vietnam has rapidly become a key beneficiary of global supply chain diversification, with strong foreign direct investment and a young, increasingly skilled workforce driving industrial and export growth,” Lee explains. “The country’s stable macroeconomic environment, expanding middle class and rising domestic consumption further support its trajectory.” For Vietnam, VanEck offers VNM.

The fund tracks the MarketVector Vietnam Local Index. Performance has varied over time in a boom-or-bust manner. Since its launch in August 2009, VNM’s annualized return has been negative, and its 10-year annualized return sits at just 1.9%. However, the market has recovered more recently, and the ETF is up 50.9% year to date, outperforming the U.S. market. VNM charges a 0.68% expense ratio.

Global X MSCI Argentina ETF (ARGT)

“Despite delivering the strongest single-country performance in the world last year, Argentina continues to offer a rare combination of value and growth,” says Malcolm Dorson, senior vice president, head of the active investment team and senior emerging-markets portfolio manager at Global X ETFs. “ARGT continues to stand out as the first and only product delivering direct access to Argentina.”

However, ARGT’s trading behavior also shows a challenge that can come with some emerging-market ETFs. It carries a 0.3% 30-day median bid ask spread, which is considered wide. ETF liquidity is closely tied to how easily the underlying securities can be traded. Many Argentinian equities are less liquid, trade on smaller local exchanges and have lower foreign participation, which hinders ARGT’s liquidity.

WisdomTree Emerging Markets High Dividend Fund (DEM)

Another way to move beyond market-cap weighting in emerging markets is through dividend strategies such as DEM. The ETF selects the top 30% highest-yielding stocks from the WisdomTree Emerging Markets Dividend Index, and weights them based on the amount of cash dividends they pay each year. This structure results in a higher 4.9% 30-day SEC yield after a 0.63% expense ratio.

Dividend screens can tilt the portfolio toward companies with stronger balance sheets and steadier cash flows, which may improve overall quality and push the fund toward value-oriented names. However, investors should be aware of tax drag. Higher dividend payouts can create a heavier tax burden in a regular brokerage account, so ETFs like DEM should be prioritized for a Roth IRA.

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8 Best Emerging-Market ETFs to Buy for 2026 originally appeared on usnews.com

Update 11/18/25: This story was published at an earlier date and has been updated with new information.