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Top 5 Emerging Market ETFs to Watch in 2024🌟

πŸ’΅ Quicklist of Emerging Market ETFs

In today's interconnected global economy, savvy investors understand the importance of looking beyond domestic markets for growth opportunities. While U.S. markets have certainly delivered impressive returns, emerging markets present compelling opportunities for portfolio diversification and long-term growth potential.

In this article, we'll dive into emerging market ETFs, discussing why they can be a strong choice for diversification, their performance compared to U.S. markets, and the specific ETFs that might suit your investment goals. Sit back and enjoy this weekend's reading tailored just for you!

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Why Emerging Market ETFs?🌎

  • 🌐Diversification with a Global Twist: Investing in emerging markets provides a chance to diversify your portfolio beyond the United States' borders. These market often behave differently from developed economies, offering potential stability when U.S. markets face turbulence. Additionally, they expose investors to growth stories fuelled by young populations, expanding middle classes, and increasing urbanisation.

  • πŸ“ˆNot US-Level, But Promising Performance: Indeed, emerging markets haven't delivered returns that rival the roaring U.S. stock market over the past decade. However, they have shown resilience and growth, especially during challenging global conditions. For long-term investors, this means opportunities to ride out volatility and benefit from these economies' upward trajectory.

  • 🌱Long-Term Potential for Patient Investors: Emerging markets often need time to grow. For patient investors, this is a chance to participate in the development of industries and technologies that define the future of global markets. Investing through ETFs allows you to tap into these opportunities without picking individual stocks.

Emerging markets grow faster with tech, demographics, and wealth

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The emerging markets represent approximately 40% of global GDP. They are home to over 85% of the world's population.

πŸ†Top Emerging Market ETFs

1. Vanguard FTSE Emerging Markets ETF (VWO)

Expense Ratio: 0.08%

Provider: Vanguard

Past 5 Years Annualised Performance: 4.58%

Introduced by ETFUNO already, VWO is one of the largest and most affordable ways to access a broad swath of emerging markets, spanning regions like China, India, and Brazil.

2. iShares MSCI Emerging Markets ETF (EEM)

Expense Ratio: 0.70%

Provider: iShares

Past 5 Years Annualised Performance: 4.70%

Also covered by ETFUNO, EEM focuses on large- and mid-cap companies in emerging markets, offering exposure to over 800 stocks.

3. Schwab Emerging Markets Equity ETF (SCHE)

Expense Ratio: 0.11%

Provider: Charles Schwab

Past 5 Years Annualised Performance: 4.33%

SCHE is a wallet-friendly ETF that provides exposure to companies from dozens of emerging market economies.

4. Avantis Emerging Markets Equity ETF (AVEM)

Expense Ratio: 0.33%

Provider: Avantis Investors

Past 5 Years Annualised Performance: 6.54%

This actively managed ETF combines systematic and active management strategies, focusing on high-quality and value-oriented stocks within emerging markets.

5. SPDR Portfolio Emerging Markets ETF (SPEM)

Expense Ratio: 0.07%

Provider: SPDR

Past 5 Years Annualised Performance: 5.41%

SPEM is known for its low cost and wide coverage of emerging market equities, making it a solid choice for cost-conscious investors.

Global Growth Made SimpleπŸ› οΈ

Emerging market ETFs offer a compelling way to add diversity and long-term growth potential to your investment portfolio. While they may not outshine the U.S. markets in the short term, their resilience and future promise make them a worthwhile consideration for patient investors.

We hope this article on emerging market ETFs has given you valuable insights for your investment journey. We encourage you to join the ETF UNO community for more in-depth analysis, market updates, and investment ideas. Our platform offers regular newsletters, expert insights, and a supportive community of like-minded investors dedicated to building better portfolios through ETF investing.

Enjoy the Thanksgiving weekend readings!

DISCLAIMER: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider consulting with a financial advisor before making investment decisions.

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