By region

Emerging-market ETFs

A single fund that spreads your money across developing economies like China, India, and Brazil.

~24 developing economies, one fund

What Emerging-market ETFs are

An emerging-market ETF is a fund that holds shares in companies from developing economies -- countries whose markets are growing but aren't yet as established as the US or Western Europe. An ETF (exchange-traded fund) is a basket of many investments you can buy in one go, like a single share.

Most of these funds follow the MSCI Emerging Markets index, a standard list of larger companies across roughly two dozen countries. China, India, Taiwan, and South Korea usually make up the biggest slices, with Brazil and others further down.

Beginners often look here for growth, since these economies can expand faster than richer ones. The trade-off is bigger ups and downs, plus extra risks like currency swings and political change -- so it's an area worth understanding well before adding it.

At a glance

Common indexMSCI Emerging Markets (also FTSE Emerging)

Countries covered~24 developing economies

Holdings~1,200-1,400 companies

Typical yearly fee~0.15%-0.65% (called the TER)

Risk levelHigher -- larger swings than developed markets

Why beginners look here

Room to grow

These economies can expand quickly, which is part of why some investors add a slice.

Broad one-click spread

One fund spreads your money across hundreds of companies in many countries at once.

Honest trade-off: more risk

Higher potential comes with bigger price swings and extra currency and political risk.

What to look for

The index it follows Check whether it tracks MSCI or FTSE Emerging Markets, as the country and company mix differs slightly.

The yearly fee (TER) The TER, or total expense ratio, is the fund's yearly cost; emerging-market funds often cost a bit more than developed-world ones.

Country concentration See how much sits in one country -- China alone can be a large share, which concentrates risk.

Fund size and how it holds shares Larger funds tend to trade more smoothly; also check whether it owns shares directly (physical) or uses contracts (synthetic).

Popular Emerging-market ETFs

A few of the largest, pulled live from the screener — an example, not a recommendation.

Good to know

Are these riskier than a world fund?

Generally yes -- prices tend to swing more, and you take on currency and political risk. Many beginners hold them as a small part of a wider mix rather than on their own.

Is China included?

Usually a large part. In most emerging-market indexes China is one of the biggest slices, alongside India, Taiwan, South Korea, and others.

Why is the fee often higher?

Trading in developing markets costs fund managers more, so the yearly fee (TER) is typically a little above a developed-world or global fund.