Emerging Markets ETFs offer strong long-term growth, with several funds delivering over 40% returns in five years.
Top performers like Vanguard and HSBC ETFs provide diversified, cost-efficient exposure to global emerging economies.
Investing in Emerging Markets through ETFs ensures balanced risk and access to fast-growing regions in 2025.
Investing in emerging markets is a crucial strategy for investors who prefer long-term growth and diversification. These markets, which include countries such as China, India, Brazil, South Korea, and South Africa, experience faster economic expansion and rising consumer demand, leading to higher returns than developed markets. Exchange-Traded Funds (ETFs) provide an efficient and cost-effective way to gain exposure to these markets without directly investing in individual companies.
This article will discuss several emerging markets ETFs that have shown great performance, offering investors a wide range of options depending on their risk capacity and investment goals.
Below is a thorough overview of the best-performing Exchange-Traded Funds (ETFs) based on recent data, covering their 1-month to 5-year returns:
ISIN: IE00BKM4GZ66
iShares Core ETF has been a strong performer, gaining +5.64% over 1 month, +9.81% over 3 months, and +12.08% over 6 months. Its one-year returns exceeded +11.00%, while its 3-year and 5-year returns stood at +37.36% and +44.49%, respectively. The fund tracks the MSCI Emerging Markets Investable Market Index, offering diversified exposure to large, mid, and small-cap companies across 26 emerging economies. iShares Core ETF’s consistent long-term performance makes it a core holding for many investors.
ISIN: IE00BTJRMP35
Xtrackers ETF closely follows the MSCI Emerging Markets Index and has shown steady growth. Its performance includes +6.38% (1 month), +10.58% (3 months), and +12.22% (6 months). Over a year, it delivered +12.09%, and for longer periods, the ETF’s performance was +36.93% (3 years) and +39.32% (5 years). Xtrackers ETF is known for efficient tracking and a relatively low total expense ratio, making it suitable for long-term investors.
ISIN: IE00B0M63177
iShares MSCI is a distributing version of the iShares Emerging Markets ETF that offers dividends to investors while maintaining solid performance. The fund achieved +6.40% (1 month), +10.60% (3 months), and +12.20% (6 months). Over one year, the return stood at +12.25%, with +37.31% (3 years) and +39.94% (5 years). It provides access to a diversified basket of emerging market companies with consistent long-term returns.
ISIN: IE00B4L5YC18
iShares MSCI's accumulating version reinvests income, compounding gains over time. It has performed slightly better than its distributing counterpart with +6.41% (1 month), +10.59% (3 months), +12.22% (6 months), and +12.28% (1 year). The 3-year and 5-year gains are +37.43% and +40.15%, respectively. Its strong and steady returns make it a preferred choice among growth-focused investors.
ISIN: LU2573966905
Amundi’s swap-based ETF is designed to track the MSCI Emerging Markets Index through derivative exposure. It has shown +6.42% (1 month), +10.51% (3 months), +12.11% (6 months), and +12.08% (1 year). Although it lacks longer-term data, its recent performance aligns closely with other leading funds, suggesting strong underlying fundamentals.
ISIN: LU1437017350
Amundi Core MSCI accumulating ETF has returned +6.34% (1 month), +10.58% (3 months), +12.17% (6 months), and +12.10% (1 year). Over longer periods, it gained +36.93% (3 years) and +39.50% (5 years). Amundi’s efficient management and competitive cost structure make this ETF a solid long-term investment option for emerging markets exposure.
ISIN: LU1681045370
Amundi’s swap-based, Euro-denominated ETF recorded +6.75% (1 month), +10.59% (3 months), +12.28% (6 months), and +11.43% (1 year). It has grown by +37.32% in 3 years and by +39.29% in 5 years. Its slightly higher 1-month performance indicates potential resilience and active management effectiveness.
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ISIN: IE00B3VVMM84
Vanguard’s ETF offers broad exposure to FTSE Emerging Markets. It has shown +5.58% (1 month), +10.35% (3 months), +9.62% (6 months), and +11.00% (1 year). The 3-year return stands at +34.49% and the 5-year at +43.32%. Its slightly lower short-term growth is offset by strong long-term stability.
ISIN: IE00B5SSQT16
HSBC MSCI ETF has been a steady performer with +6.31% (1 month), +10.59% (3 months), +11.89% (6 months), and +12.39% (1 year). Over the longer term, it gained +36.09% (3 years) and +38.03% (5 years). HSBC’s global expertise and efficient replication approach enhance this ETF’s credibility.
ISIN: LU0480132876
Unlike most ETFs on this list, this UBS fund showed negative short-term performance with -20.97% (1 month), -17.80% (3 months), and -16.57% (6 months). Its one-year return was -16.52%, though it has modestly positive 3-year (+2.41%) and 5-year (+3.60%) gains. The underperformance may be due to structural or currency factors affecting returns.
ISIN: IE00BK5BR733
Vanguard FTSE ETF’s accumulating version matches its distributing counterpart closely with +5.55% (1 month), +10.36% (3 months), +9.62% (6 months), and +11.00% (1 year). Its 3-year and 5-year performance is +34.46% and +43.34%, respectively. The reinvestment of dividends aids in compounding returns over time.
ISIN: IE00B469F816
SPDR’s ETF maintains a strong record with +6.31% (1 month), +10.55% (3 months), and +12.12% (6 months). It returned +12.24% (1 year), +37.37% (3 years), and +39.91% (5 years). Its balanced growth and global reputation make it one of the most reliable emerging market ETFs available.
ISIN: IE00B3Z3FS74
UBS’s USD-denominated accumulating ETF has shown +6.40% (1 month), +10.43% (3 months), and +11.93% (6 months). It has produced +11.74% (1 year), +37.06% (3 years), and +39.55% (5 years). UBS’s focus on sustainability and efficient replication adds to its appeal for long-term investors.
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ISIN: IE000GWA2J58
Xtrackers UCITS 1D ETF posted +6.46% (1 month), +10.70% (3 months), +12.25% (6 months), and +12.06% (1 year). The 3-year performance is +37.01%, with no 5-year data available. It remains one of the top performers in short-term growth among all ETFs listed.
ISIN: IE0004I037N4
Franklin Templeton’s ETF has posted +5.62% (1 month), +10.40% (3 months), and +9.74% (6 months). Long-term data is not yet available, but the early results indicate promising consistency aligned with other top performers.
Most ETFs tracking emerging markets have delivered strong double-digit returns over the past three and five years, highlighting the resilience of emerging economies. The top-performing ETFs, such as iShares Core MSCI Emerging Markets IMI UCITS ETF (Acc), SPDR MSCI Emerging Markets UCITS ETF, and Amundi MSCI Emerging Markets Swap UCITS ETF EUR Acc, have outperformed peers, benefiting from diversified holdings and efficient replication strategies.
Short-term trends (1month – 6 months) have also been positive, with nearly all funds recording between +5% and +7% growth over one month and around +10% to +12% over three months.
Emerging markets are one of the most attractive investment options for global investors who want growth and diversification. ETFs offer a simple and transparent way to participate in this opportunity.
Funds such as iShares MSCI EM UCITS ETF, Xtrackers MSCI Emerging Markets UCITS ETF, and Amundi Core MSCI Emerging Markets UCITS ETF have consistently provided competitive returns, supported by solid long-term growth potential in regions like Asia, Latin America, and Eastern Europe.
With increasing global economic recovery and technological advancements across emerging nations, these ETFs are expected to perform strongly, making them excellent options for a diversified portfolio.
1. What are Emerging Markets ETFs?
Emerging Markets ETFs are exchange-traded funds that invest in stocks from developing economies such as China, India, and Brazil, offering investors exposure to high-growth regions.
2. Why invest in Emerging Markets ETFs in 2025?
Emerging Markets ETFs provide access to rapidly expanding economies, helping investors benefit from industrial growth, rising consumer demand, and improving global trade dynamics.
3. Which are the best Emerging Markets ETFs to consider?
Some top-performing funds include the iShares Core MSCI Emerging Markets IMI UCITS ETF, Vanguard FTSE Emerging Markets UCITS ETF, and HSBC MSCI Emerging Markets UCITS ETF.
4. Are Emerging Markets ETFs risky?
Yes, they carry higher volatility compared to developed market ETFs due to political, currency, and economic fluctuations—but they also offer greater long-term growth potential.
5. How can investors start investing in Emerging Markets ETFs?
Investors can buy these ETFs through brokerage platforms or investment apps, selecting options like Vanguard or HSBC ETFs for diversified exposure across multiple emerging economies.