Top 9 ASX emerging markets ETFs to watch in 2026

Emerging markets ETFs hold shares in companies from economies that global index providers classify as 'developing'. The nine funds in this list range from broad equity trackers to single-country options and bond funds, with management expense ratios (MERs) from 0.26% to 0.99%.

How we built this list: We selected these funds based on their industry or investment category and ordered them by assets under management. Prices are updated daily, and the list and supporting content are reviewed roughly every quarter. All data is sourced from Stake. This list isn't a recommendation and isn't ordered by suitability.

Past performance is not a reliable indicator of future performance.

Source: Stake market data. Figures in A$. Data updated as of 11 August 2026.

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1. Vanguard FTSE Emerging Markets Shares AUD ETF ($VGE)

Vanguard FTSE Emerging Markets Shares AUD ETF (VGE) share price over the last year: started at A$86.20, ended at A$94.66, a change of +9.8%. Range over the period: high A$95.83, low A$82.31. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $94.66 · Daily: 0.1% · AUM: $2.01B · MER: 0.48%

Vanguard FTSE Emerging Markets Shares AUD ETF ($VGE) aims to track the FTSE Emerging Markets All Cap China A Inclusion Index. 'All Cap' means the index covers companies across the full size spectrum – large, mid and small-cap – within the emerging markets universe, rather than focusing only on the biggest names. The 'China A Inclusion' component incorporates mainland Chinese A-shares, which trade on China's domestic exchanges.

Dividends collected from the underlying holdings are reinvested into the index return rather than paid out as distributions. $VGE's objective is to replicate that index return before fees, expenses and tax are taken into account.

2. iShares MSCI Emerging Markets AUD ETF ($IEM)

iShares MSCI Emerging Markets AUD ETF (IEM) share price over the last year: started at A$76.68, ended at A$93.63, a change of +22.1%. Range over the period: high A$102.34, low A$76.63. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $93.63 · Daily: 0.2% · AUM: $1.72B · MER: 0.71%

Tracking the MSCI Emerging Markets Net TR Index (AUD), the iShares MSCI Emerging Markets AUD ETF ($IEM) aims to capture the performance of large and mid-cap equities across countries that MSCI classifies as emerging markets. The index covers economies across multiple regions, so the geographic mix follows index weighting rather than a concentrated country position. The 'net total return' construction means dividends are reinvested after withholding tax is deducted at source – reflecting what the fund actually receives from foreign dividends, not the gross amount.

$IEM is passively managed, so it holds equities in line with the MSCI Emerging Markets benchmark rather than making active allocation calls. That index-driven approach means the country and sector mix shifts as the benchmark is rebalanced, not at a fund manager's discretion.

3. VanEck MSCI Multifactor Emerging Markets Eq ETF ($EMKT)

VanEck MSCI Multifactor Emerging Markets Eq ETF (EMKT) share price over the last year: started at A$28.85, ended at A$34.56, a change of +19.8%. Range over the period: high A$42.38, low A$28.39. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $34.56 · Daily: 0.4% · AUM: $737.6M · MER: 0.69%

VanEck MSCI Multifactor Emerging Markets Eq ETF ($EMKT) draws from the MSCI Emerging Markets Index – a universe of large and mid-cap stocks across emerging market countries – but adds a factor-selection layer on top. The fund's reference index aims to maximise exposure to four factors: Value, Momentum, Quality and Low Size. It's designed to maintain a risk profile close to that parent index while pursuing those factor tilts.

4. iShares China Large-Cap AUD ETF ($IZZ)

iShares China Large-Cap AUD ETF (IZZ) share price over the last year: started at A$56.94, ended at A$50.02, a change of −12.2%. Range over the period: high A$63.09, low A$44.89. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $50.02 · Daily: -1.6% · AUM: $457.0M · MER: 0.60%

The iShares China Large-Cap AUD ETF ($IZZ) is designed to track the FTSE China 50 Net TR Index, which follows 50 of China's largest listed companies. Concentrating on 50 names rather than a broader sweep of the market means the fund's returns are closely tied to a relatively compact group of major Chinese businesses.

As a single-country fund, $IZZ carries the concentration risk that comes with focusing on one market and one economy. Investors in this fund take on exposure to China-specific factors – regulatory shifts, domestic policy changes and sector-level developments – more directly than a broader emerging markets fund would.

5. iShares MSCI Emerging Markets ex China ETF ($EMXC)

iShares MSCI Emerging Markets ex China ETF (EMXC) share price over the last year: started at A$29.60, ended at A$39.93, a change of +34.9%. Range over the period: high A$45.37, low A$28.82. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $39.93 · Daily: -0.2% · AUM: $405.9M · MER: 0.26%

The iShares MSCI Emerging Markets ex China ETF ($EMXC) aims to track the MSCI Emerging Markets ex China Index, which is designed to cover large and mid-capitalisation stocks across developing economies while leaving out Chinese-listed companies. That exclusion is the defining feature of the fund's construction – it targets the same broad emerging markets universe as a standard global EM tracker, just without China's weighting dragging the composition.

The fund holds a MER of 0.26%, with total assets of $405.9M. The index it follows is designed to capture performance across a range of countries that global index providers classify as emerging markets.

6. VanEck Emerging Income Opportunities Active ETF ($EBND)

VanEck Emerging Income Opportunities Active ETF (EBND) share price over the last year: started at A$10.75, ended at A$10.72, a change of −0.3%. Range over the period: high A$11.12, low A$10.54. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $10.72 · Daily: 0.5% · AUM: $295.4M · MER: 0.95%

The VanEck Emerging Income Opportunities Active ETF ($EBND) holds bonds and currencies across emerging markets, structured as an actively managed portfolio rather than a passive index tracker. A portfolio team makes the underlying allocation decisions, aiming to outperform a blended benchmark over the long term.

That benchmark combines two J.P. Morgan emerging market bond indices in equal parts – the Emerging Market Bond Index Global Diversified Hedged AUD and the Government Bond-Emerging Market Index Global Diversified. The bond and currency focus sets $EBND apart from the equity-oriented funds elsewhere in this article.

7. Betashares India Quality ETF ($IIND)

Betashares India Quality ETF (IIND) share price over the last year: started at A$11.43, ended at A$10.16, a change of −11.1%. Range over the period: high A$12.16, low A$9.19. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $10.16 · Daily: -0.6% · AUM: $181.6M · MER: 0.80%

Betashares India Quality ETF ($IIND) aims to track the Solactive India Quality Select Index NTR, which covers Indian companies listed in India and selected through a quality screen rather than a simple market-cap weighting. That screen ranks companies on four ratios: return on equity, earnings per share growth, debt to equity, and earnings stability.

The result is a portfolio tilted toward Indian businesses that score well across those fundamental measures. It's a more targeted approach to Indian equities than a broad market tracker would offer.

8. Fidelity Global Emerging Markets Active ETF ($FEMX)

Fidelity Global Emerging Markets Active ETF (FEMX) share price over the last year: started at A$6.66, ended at A$7.44, a change of +11.7%. Range over the period: high A$8.32, low A$6.66. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $7.44 · Daily: 0.0% · AUM: $175.2M · MER: 0.99%

Actively managed rather than index-tracking, Fidelity Global Emerging Markets Active ETF ($FEMX) gives a portfolio manager discretion over which securities to hold. The mandate aims to beat the fund's benchmark over the medium to long term, rather than simply replicate it.

At least 70% of the fund's assets go into companies that are listed, headquartered, or do most of their business in developing markets. Latin America, South East Asia, Africa, Eastern Europe and the Middle East all fall within that scope. According to the fund's mandate, the objective is long-term capital growth through those emerging market holdings.

9. iShares JP Morgan USD EM Bond (AUD Hedged) ETF ($IHEB)

iShares JP Morgan USD EM Bond (AUD Hedged) ETF (IHEB) share price over the last year: started at A$76.83, ended at A$76.82, a change of −0.0%. Range over the period: high A$80.68, low A$74.76. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $76.82 · Daily: -0.2% · AUM: $50.2M · MER: 0.53%

Fixed income rather than equities is the focus here. iShares JP Morgan USD EM Bond (AUD Hedged) ETF ($IHEB) aims to track the J.P. Morgan EMBI Global Core Index. That index is designed to measure the AUD-hedged performance of U.S. dollar-denominated bonds from emerging market governments and government-linked entities.

The index covers both fixed-rate and floating-rate debt, and $IHEB is currency-hedged. The borrower base consists of sovereign and quasi-sovereign issuers – national governments and state-backed entities rather than private companies.

Common questions

How do I invest in emerging markets ETFs in Australia?

All nine funds in this article trade on the ASX, so you buy them through any share trading platform that provides access to ASX-listed securities. You search the ticker, place an order as you would with any ASX-listed stock, and settlement follows standard ASX processes. The funds hold overseas securities, but the ASX-listed structure means you don't need to open accounts in individual emerging markets to get that exposure.

What are the key risks of emerging markets ETFs?

Currency movements are a significant factor – most of these funds are unhedged, so returns in Australian dollars will shift with exchange-rate changes between the AUD and the currencies of the underlying holdings. Emerging markets also carry political and regulatory risk: government policy can shift quickly, and governance standards and market liquidity vary considerably across countries. For the equity funds, country concentration matters too – broad EM indices typically allocate heavily to a small number of countries, meaning events in one market can have an outsized effect on the fund. The bond funds add interest rate risk and credit risk on top of those country-level considerations.

What types of emerging markets ETFs are in this list?

The funds here take several different approaches. Most hold emerging markets shares – some track a broad index across dozens of countries, while others concentrate on a single market: $IZZ covers Chinese large-caps and $IIND focuses on Indian companies that pass a quality screen. $EMXC takes a broad equity approach but removes China from its index entirely. Two funds – $EBND and $IHEB – invest in emerging market bonds rather than equities, with $IHEB currency-hedged back to AUD. Management style also varies across the list: most funds aim to track an index, $FEMX is actively managed, and $EMKT applies a factor-based screen targeting value, momentum, quality and size rather than weighting holdings by market capitalisation.

How do the fees across these funds compare?

The annual management expense ratios (MERs) in this list run from 0.26% to 0.99%. The two actively managed funds sit at the top of that range: $FEMX at 0.99% and $EBND at 0.95%. Index-tracking funds range from 0.26% for $EMXC up to 0.80% for $IIND, with the variation reflecting differences in the underlying index, the markets covered and how the fund is structured.

Disclaimer

Past performance is not a reliable indicator of future performance. When you invest, your capital is at risk. You should consider your own investment objectives, financial situation, and particular needs before making an investment decision. The value of your investments can go down as well as up and you may receive back less than your original investment. As always, do your own research and consider seeking appropriate financial advice before investing.

This is not personal financial advice nor a recommendation to invest in the securities listed. Any advice provided by Stake is of general nature only and does not take into account your specific circumstances. Trading and volume data from the Stake investing platform is for reference purposes only, the investment choices of others may not be appropriate for your needs and is not a reliable indicator of performance.

Please refer to hellostake.com/pricing for the fees that apply. When you trade securities priced in another currency, currency conversion fees may apply and movements in the exchange rate may affect your returns.

Stake Desk

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