Guide · International Emerging
Best emerging-markets ETFs
Emerging-market funds are dominated by the same handful of names: TSMC, Tencent, Samsung, Alibaba, depending on the index. VWO (FTSE) treats Korea as developed, so Korea lives in VEA instead. IEMG (MSCI) keeps Korea in emerging. Mix the two families and you either double-count Korea or drop it. Costs are 6–9 bps at the top of the table.
Published May 18, 2026 · Updated Sep 16, 2026 · Fund data as of Oct 24, 2026
Why the ranking looks like this
The core index funds run cheap — 6-9 bps — and hold broadly similar exposure dominated by the same handful of names (TSMC, Tencent, Samsung, Alibaba, depending on index). VWO uses the FTSE All Cap China A Inclusion index, which gives it the largest China weight and the broadest small-cap reach; IEMG and SCHE use MSCI-based indexes with somewhat lower China exposure. Score gaps come from cost and AUM, not from material exposure differences.
See the methodology for the full formula behind each sub-score.
The funds
This order is editorial. The composite on each card is live. The full score-ranked table is on the category page.
-
89
composite / 100
Vanguard's emerging-markets fund. 6 bps; tracks FTSE Emerging Markets All Cap China A Inclusion. The standard emerging-markets choice in a 3-fund-style portfolio that splits VEA + VWO instead of using a single VXUS / IXUS holding.
- Expense
- 0.060%
- AUM
- $164.66B†
- Issuer
- Vanguard
- Detail
- VWO page →
-
88
composite / 100
Schwab's emerging-markets fund. 7 bps; tracks FTSE Emerging Index. Smaller AUM than VWO or IEMG but functionally interchangeable. Useful as a TLH partner.
- Expense
- 0.060%
- AUM
- $12.78B
- Issuer
- Schwab
- Detail
- SCHE page →
-
86
composite / 100
iShares' Core MSCI Emerging Markets fund. 9 bps. The MSCI alternative to VWO's FTSE methodology — South Korea is classified as emerging here (it's developed in FTSE), which means IEMG has a meaningfully higher South Korea weight than VWO does.
- Expense
- 0.090%
- AUM
- $160.08B
- Issuer
- iShares
- Detail
- IEMG page →
† Whole fund: this ETF is one share class of a fund that also sells mutual-fund shares, and the figure covers all of them. Our sources don't report the ETF class on its own.
Also in the category
Other funds in the same category, ranked by composite score.
Country classification disagreements matter
Whether South Korea belongs in the developed or emerging bucket has been an open question for years. FTSE upgraded South Korea to developed in 2009; MSCI still classifies it as emerging. The practical impact: a VEA (FTSE developed) + VWO (FTSE emerging) split holds South Korea inside VEA, while an IEFA (MSCI developed) + IEMG (MSCI emerging) split holds it inside IEMG. The total exposure ends up similar; the country shows up in a different fund. Don't mix FTSE and MSCI funds across the developed/emerging split without checking — you can end up double-counting or zero-counting Korea.
Emerging markets and tax efficiency
Foreign tax withholding on emerging-market dividends runs higher than developed markets do, and qualified-dividend treatment is less consistent (varies by treaty country). The methodology page sets emerging at a 65 base on tax efficiency vs. 70 for developed. The foreign tax credit recovers some of the withholding in a taxable account but not all; the credit is forfeit entirely in tax-advantaged accounts. For most US-domiciled passive investors, holding international equity in a taxable account is the standard placement — opposite the usual "bonds in tax-advantaged" rule.
Funds are pulled from the live composite for this category. Notes are editorial and refresh with the catalog.
PlainIndex publishes data and editorial commentary — nothing here is personalized investment advice. Read the methodology for how the scores referenced here are computed.