Best Emerging Market ETFs

ETF Trends

With global growth, copious liquidity and low interest rates spurring riskier investment strategies, emerging market equities and exchange traded funds have been among the most attractive assets this year.

“The main argument for investing in international equities is for diversification through exposure to different countries and economies, slightly different sector weightings, and foreign currencies,” according to Morningstar analyst Patricia Oey. “Not surprisingly, emerging-markets equities offer greater diversification benefits for a U.S. equity-dominated portfolio, relative to international developed-markets equities.”

Additionally, emerging markets as a whole have been outperforming developed economies, despite the heavy sell-offs in recent years due to high market volatility.

“The MSCI Emerging Markets Index [has returned] an annualized 15% over the past 10 years to Nov. 30, 2011, far outpacing the S&P 500’s 3%,” Oey added. “At this time, valuations in emerging markets (as measured by the MSCI Emerging Markets Index) are near 10-year lows.”

Currently, emerging market observes are closely monitoring the debt situation in Europe, as any signs of uncertainty will affect emerging market equities first. [Emerging Market ETF Buying Spree Pauses]

“Emerging markets are still focused on what’s happening in the Eurozone,” Simon Quijano-Evans, an emerging-markets economist at ING Groep NV, said in a Bloomberg article. “The Eurozone has confirmed that it will not let Greece default in the short term, but we obviously need to start seeing longer-term issues like a fiscal union being concretized.”

ETF investors may choose from a range of funds to gain regional or broad exposure to the emerging markets. Additionally, investors may also choose from individual country ETFs to take on more focused exposure. [Emerging Market Currency ETFs]

Broad Emerging Markets

  • db-X MSCI Emerging Markets Currency-Hedged Equity Fund (NYSEArca: DBEM)
  • EGShares Emerging Markets Consumer ETF (NYSEArca: ECON)
  • EGShares Emerging Markets Metals/Mining ETF (NYSEArca: EMT)
  • EGShares Energy GEMS ETF (NYSEArca: OGEM)
  • EGShares GEMS Composite ETF (NYSEArca: AGEM)
  • EGShares Low Volatility Emerging Markets Dividend ETF (NYSEArca: HILO)
  • First Trust Emerging Markets AlphaDEX Fund (NYSEArca: FEM)
  • Global X FTSE ASEAN 40 ETF (NYSEArca: ASEA)
  • Global X Russell Emerging Markets Growth ETF (NYSEArca: EMGX)
  • Global X Russell Emerging Markets Value ETF (NYSEArca: EMVX)
  • Guggenheim Frontier Markets ETF (NYSEArca: FRN)
  • Index IQ Emerging Markets Mid Cap ETF (NYSEArca: EMER)
  • iPath Long Enhanced MSCI Emerging Markets Index ETN (NYSEArca: EMLB)
  • iPath Short Enhanced MSCI Emerging Markets Index ETN (NYSEArca: EMSA)
  • iShares MSCI Emerging Markets Index Fund (NYSEArca: EEM)
  • iShares MSCI Emerging Markets Small Cap Index Fund (NYSEArca: EEMS)
  • iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSEArca: EEMV)
  • iShares S&P Asia 50 Index Fund (NYSEArca: AIA)
  • iShares MSCI Emerging Markets Eastern Europe Index Fund (NYSEArca: ESR)
  • iShares MSCI Emerging Markets EMEA Index Fund (NYSEArca: EEME)
  • iShares MSCI Emerging Markets Financials Sector Index Fund ETF (NYSEArca: EMFN)
  • iShares MSCI Emerging Markets Latin Amer (NYSEArca: EEML)
  • iShares MSCI Emerging Markets Materials Sector Index Fund ETF (NYSEArca: EMMT)
  • iShares S&P Emerging Markets Infrastructure Index Fund ETF (NYSEArca: EMIF)
  • Market Vectors Africa Index ETF (NYSEArca: AFK)
  • Market Vectors-Gulf States (NYSEArca: MES)
  • PowerShares BLDRS Emerging Markets 50 ADR Index Fund (NasdaqGM: ADRE)
  • PowerShares DWA Emerging Markets Technical Leaders Portfolio (NYSEArca: PIE)
  • PowerShares FTSE RAFI Emerging Markets Portfolio (NYSEArca: PXH)
  • PowerShares MENA Frontier Countries Portfolio (NYSEArca: PMNA)
  • PowerShares S&P Emerging Markets Low Volatility Portfolio (NYSEArca: EELV)
  • Powershares Global Emerging Markets Infrastructure Portfolio ETF (NYSEArca: PXR)
  • Rydex MSCI Emerging Markets Equal Weight ETF (NYSEArca: EWEM)
  • Schwab Emerging Markets Equity ETF (NYSEArca: SCHE)
  • SPDR S&P Emerging Asia Pacific ETF (NYSEArca: GMF)
  • SPDR S&P Emerging Markets ETF (NYSEArca: GMM)
  • SPDR S&P Emerging Markets Dividend ETF (NYSEArca: EDIV)
  • SPDR S&P Emerging Markets Small Cap ETF (NYSEArca: EWX)
  • SPDR S&P Emerging Middle East & Africa ETF (NYSEArca: GAF)
  • SPDR S&P Emerging Europe ETF(NYSEArca: GUR)
  • Vanguard MSCI Emerging Markets ETF (NYSEArca: VWO)
  • WisdomTree Emerging Markets High-Yielding Equity Fund (NYSEArca: DEM)
  • WisdomTree Emerging Markets SmallCap Dividend Fund (NYSEArca: DGS)
  • WisdomTree Middle East Dividend Fund (NYSEArca: GULF)
  • Direxion Daily Emerging Markets Bear 3x Shares ETF (NYSEArca: EDZ)
  • Direxion Daily Emerging Markets Bull 3X Shares ETF (NYSEArca: EDC)
  • ProShares Short MSCI Emerging Markets ETF (NYSEArca: EUM)
  • ProShares Ultra MSCI Emerging Markets ETF (NYSEArca: EET)
  • ProShares UltraShort MSCI Emerging Markets ETF (NYSEArca: EEV)

BRICs: Brazil, Russia, India and China

  • Guggenhiem BRIC ETF (NYSEArca: EEB)
  • First Trust Bick Index Fund (NYSEArca: BICK)
  • iShares MSCI BRIC Index Fund (NYSEArca: BKF)
  • SPDR S&P BRIC 40 ETF (NYSEArca: BIK)
  • Direxion Daily BRIC Bear 2x Shares ETF (NYSEArca: BRIS)
  • Direxion Daily BRIC Bull 2x Shares ETF (NYSEArca: BRIL)

Brazil

  • DBX MSCI Brazil Currency-Hedged Equity Fund ETF (NYSEArca: DBBR)
  • EGShares Brazil Infrastructure ETF (NYSEArca: BRXX)
  • First Trust Brazil AlphaDEX ETF (NYSEArca: FBZ)
  • Global X Brazil Consumer ETF (NYSEArca: BRAQ)
  • Global X Brazil Financials ETF (NYSEArca: BRAF)
  • Global X Brazil Mid Cap ETF (NYSEArca: BRAZ)
  • iShares MSCI Brazil Index Fund ETF (NYSEArca: EWZ)
  • iShares MSCI Brazil Small Cap Index Fund ETF (NYSEArca: EWZS)
  • Market Vectors Brazil Small-Cap ETF (NYSEArca: BRF)
  • ProShares Ultra MSCI Brazil ETF (NYSEArca: UBR)
  • ProShares UltraShort MSCI Brazil ETF (NYSEArca: BZQ)

China

  • EGShares China Infrastructure (NYSEArca: CHXX)
  • First Trust China AlphaDEX ETF (NYSEArca: FCA)
  • Global X China Consumer ETF (NYSEArca: CHIQ)
  • Global X China Technology ETF (NYSEArca: CHIB)
  • Global X China Energy ETF (NYSEArca: CHIE)
  • Global X China Financials ETF (NYSEArca: CHIX)
  • Global X China Industrials ETF (NYSEArca: CHII)
  • Global X China Materials ETF (NYSEArca: CHIM)
  • Global X NASDAQ China Technology ETF (NYSEArca: QQQC)
  • Guggenheim China All-Cap ETF (NYSEArca: YAO)
  • Guggenheim China Small Cap ETF (NYSEArca: HAO)
  • Guggenheim China Technology ETF (NYSEArca: CQQQ)
  • Guggenheim China Real Estate ETF (NYSEArca: TAO)
  • iShares MSCI China ETF (NYSEArca: MCHI)
  • iShares FTSE/Xinhua China 25 Index Fund (NYSEArca: FXI)
  • iShares FTSE China (HK Listed) Index Fund (NYSEArca: FCHI)
  • iShares MSCI China Small Cap Index Fund (NYSEArca: ECNS)
  • Market Vectors China ETF (NYSEArca: PEK)
  • Powershares Golden Dragon Halter USX China Portfolio (NYSEArca: PGJ)
  • SPDR S&P China ETF (NYSEArca: GXC)
  • Direxion Daily China 3X Bear Shares ETF (NYSEArca: YANG)
  • Direxion Daily China 3X Bull Shares ETF  (NYSEArca: YINN)
  • ProShares Short FTSE/Xinhua China 25 (NYSEArca: YXI)
  • ProShares Ultra FTSE/Xinhua China 25 (NYSEArca: XXP)
  • ProShares UltraShort FTSE/Xinhua China 25 (NYSEArca: FXP)

Chile

  • iShares MSCI Chile Index Fund ETF (NYSEArca: ECH)

Colombia

  • Global X FTSE Colombia 20 ETF (NYSEArca: GXG)
  • Market Vector Colombia ETF (NYSEArca: COLX)

Egypt

  • Market Vectors Egypt Index Fund (NYSEArca: EGPT)

Hong Kong

  • iShares MSCI Hong Kong Index Fund ETF (NYSEArca: EWH)
  • iShares MSCI Hong Kong Small Cap (NYSEArca: EWHS)

India

  • EGShares Indxx India Small Cap ETF (NYSEArca: SCIN)
  • EGShares India Infrastructure ETF (NYSEArca: INXX)
  • iShares MSCI India Index Fund (NYSEArca: INDA)
  • iShares MSCI India Small Cap Index Fund (NYSEArca: SMIN)
  • iShares S&P India Nifty 50 Index Fund (NYSEArca: INDY)
  • iPath MSCI India Index ETN (NYSEArca: INP)
  • Market Vectors India Small-Cap Index ETF (NYSEArca: SCIF)
  • PowerShares India Portfolio (NYSEArca: PIN)
  • WisdomTree India Earnings Fund (NYSEArca: EPI)

Indonesia

  • iShares MSCI Indonesia Investable Market Index Fund (NYSEArca: EIDO)
  • Market Vectors Indonesia Index ETF (NYSEArca: IDX)

Mexico

  • Global X Mexico Small-Cap ETF (NYSEArca: MEXS)
  • iShares MSCI Mexico Index Fund ETF (NYSEArca: EWW)
  • ProShares Ultra MSCI Mexico Investable Market ETF (NYSEArca: UMX)
  • ProShares UltraShort MSCI Mexico Investable Market ETF (NYSEArca: SMK)

Malaysia

  • iShares MSCI Malaysia Index Fund (NYSEArca: EWM)

Peru

  • iShares MSCI All Peru Capped Index Fund ETF (NYSEArca: EPU)

Philippines

  • iShares MSCI Philippines Investable Market Index Fund (NYSEArca: EPHE)

Poland

  • iShares MSCI Poland Investable Market Index Fund (NYSEArca: EPOL)
  • Market Vectors Poland Fund (NYSEArca: PLND)

Russia

  • iShares MSCI Russia Capped Index Fund (NYSEArca: ERUS)
  • Market Vectors Russia ETF (NYSEArca: RSX)
  • Market Vectors Russia Small-Cap ETF (NYSEArca: RSXJ)
  • SPDR S&P Russia ETF (NYSEArca: RBL)
  • Direxion Daily Russia Bear 3x Shares ETF (NYSEArca: RUSS)
  • Direxion Daily Russia Bull 3x Shares ETF (NYSEArca: RUSL)

Singapore

  • iShares MSCI Singapore Index Fund ETF (NYSEArca: EWS)
  • iShares MSCI Singapore Small Cap Fund (NYSEArca: EWSS)

South Africa

  • iShares MSCI South Africa Index Fund (NYSEArca: EZA)

South Korea

  • First Trust South Korea AlphaDEX ETF (NYSEArca: FKO)
  • IndexIQ South Korea Small Cap ETF (NYSEArca: SKOR)
  • iShares MSCI South Korea Index Fund ETF (NYSEArca: EWY)

Taiwan

  • iShares MSCI Taiwan Index Fund ETF (NYSEArca: EWT)

Thailand

  • iShares MSCI Thailand Investable Market Index Fund (NYSEArca: THD)

Turkey

  • iShares MSCI Turkey Investable Market Index Fund (NYSEArca: TUR)

Vietnam

  • Market Vectors Vietnam ETF (NYSEArca: VNM)

For more information on the emerging markets, visit our emerging markets category.

Max Chen contributed to this article.

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