For investors who want to broaden their exposure beyond developed markets such as the United States, Germany, and the United Kingdom, these diversified emerging market ETFs divide their assets among at least 20 nations with a focus on emerging markets in areas such as Latin America and Asia.

The average emerging markets ETF expense ratio is 0.64%. This is generally higher than the expense ratio of other asset classes such as U.S. stocks, TIPS, or government bonds, as trading costs in local stock exchanges in less developed nations tend to be higher. The most popular emerging market ETFs, however, tend to have significantly lower expense ratios.

 

Emerging Market ETF  Ticker (Issuer) Expense Ratio Assets Under Management YTD Performance Investment Objective

iShares Core MSCI Emerging Markets ETF

IEMG (BlackRock) 0.14% $45.5B  3.61% Large-, mid-, and small- capitalization emerging market equities
 

Vanguard FTSE Emerging Markets ETF

 VWO (Vanguard)  0.14%  $69.3B  4.25%  Track FTSE Emerging Markets All Cap China A Inclusion Index of companies of all sizes in 21 countries

iShares MSCI Emerging Markets ETF

EEM (State Street)  0.11% $41.2B  4.40% Large- and mid- capitalization emerging market equities
 

Schwab Emerging Markets Equity ETF

SCHE (Charles Schwab) 0.13%  $4.9B  4.22% Track FTSE Emerging Index of large- and mid- capitalization companies in 22 countries
 

WisdomTree Emerging Markets High Dividend Yield Fund

 DEM (WisdomTree)  0.63%  $2.1B  3.40% Emerging markets high dividend fund–all cap exposure to high dividend-yielding companies