10 Best Emerging Markets ETFs of 2024 by Performance

Emerging markets ETFs have long provided investors with exposure to dynamic markets, offering opportunities for diversification and potential outperformance. 

2024 has been a pivotal year for emerging markets, with many experiencing robust economic growth, particularly in the tech sector, while a weaker Chinese economy and a stronger U.S. dollar pose threats to the market segment.  

This article will delve into the top-performing emerging markets ETFs of 2024, exploring the key trends that have driven their success, and the primary benefits and risks associated with investing in this asset class in 2024 and 2025. 

Key Economic Trends in Emerging Markets in 2024

Emerging markets present opportunities and risks in 2024 and beyond: 

• Divergent paths: Emerging markets have shown a divergence in performance. While some economies like India and South Africa have continued to grow strongly, others like China and Brazil have faced challenges. 
• China's economic recovery: China's post-COVID economic recovery has been uneven, with the real estate sector facing significant headwinds. However, government stimulus measures and policy easing have helped to stabilize the economy. 
• Commodity prices: Fluctuations in commodity prices, particularly oil, have impacted emerging market economies that are heavily reliant on commodity exports. 
• Strong U.S. dollar: Many emerging market countries and corporations borrow in U.S. dollars and a stronger U.S. currency makes dollar-denominated debt more expensive to service. A stronger dollar may also result in capital outflows from emerging markets, as investors seek higher returns or safer assets in the U.S. 
• Geopolitical risks: Geopolitical tensions, such as the ongoing Russia-Ukraine conflict, have contributed to market volatility and uncertainty in emerging markets. Donald Trump’s tariff threats also pose risks for China’s economy. 

Despite these challenges, many emerging markets continue to offer long-term growth potential, driven by factors such as urbanization, rising middle-class incomes, and technological advancements. 

Best Emerging Markets ETFs in 2024 by Performance

Data as of Nov. 11, 2024. Leveraged ETFs were not included in this list. 

Emerging Markets Internet ETF

The Emerging Markets Internet ETF (EMQQ) provides investors with exposure to the internet and e-commerce sectors within emerging markets, focusing on companies driving growth through digital platforms in regions such as China, India, and Brazil. Its holdings include businesses involved in online retail, search engines, social media, and digital payments, catering to a rising middle class and rapid digital adoption in emerging economies. 

• YTD 2024 Return: 23.30% 
• Assets under management: $392.3 million 
• Expense Ratio: 0.86% 

KraneShares Emerging Markets Consumer Technology Index ETF

The KraneShares Emerging Markets Consumer Technology Index ETF (KEMQ) focuses on capturing growth in the emerging markets consumer technology sector, specifically targeting companies benefiting from increasing internet penetration and digital consumption across Asia, Latin America, and other regions. It includes 50 holdings in e-commerce, social media, online entertainment, and fintech. 

• YTD 2024 return: 22.02% 
• Assets under management: $16.3 million 
• Expense ratio: 0.60% 

VanEck Digital India ETF

The VanEck Digital India ETF (DGIN) provides exposure to India’s rapidly growing digital economy by investing in companies focused on technology, e-commerce, and digital infrastructure. This ETF allows investors to participate in the growth of India’s tech-driven transformation, capitalizing on trends such as increasing internet penetration, mobile connectivity, and digital services across the region. 

• YTD 2024 return: 20.98% 
• Assets under management: $27.4 million 
• Expense ratio: 0.76% 

The Next Frontier Internet ETF

The Next Frontier Internet ETF (FMQQ) focuses on internet and e-commerce companies in emerging and frontier markets outside of China, such as India, Brazil, and Southeast Asia, aiming to capture the rapid digital growth in these regions. This ETF includes businesses engaged in online retail, social media, and digital payments, offering investors exposure to the expanding middle class and increasing internet adoption in fast-growing economies worldwide. 

• YTD 2024 Return: 19.37% 
• Assets under management: $30.6 million 
• Expense Ratio: 0.86% 

Putnam Emerging Markets Ex-China ETF

The Putnam Emerging Markets Ex-China ETF (PEMX) actively seeks capital appreciation by investing in stocks from emerging markets while specifically excluding China and Hong Kong. This fund targets growth opportunities in companies that may be undervalued based on earnings potential, focusing largely on technology and finance sectors within emerging regions, especially in Asia and Latin America. 

• YTD 2024 return: 18.31% 
• Assets under management: $8.2 million 
• Expense ratio: 0.85% 

VanEck India Growth Leaders ETF

The VanEck India Growth Leaders ETF (GLIN) provides investors with exposure to a broad range of Indian equities, covering large- and mid-sized companies across various sectors, including technology, finance, and consumer goods. Designed to capitalize on India’s economic growth potential, GLIN offers a diversified portfolio of Indian companies, allowing investors to access one of the world’s fastest-growing emerging markets. 

• YTD 2024 return: 17.62% 
• Assets under management: $159.3 million 
• Expense ratio: 0.87%  

India Internet & Ecommerce ETF

The India Internet & Ecommerce ETF (INQQ) offers investors a way to participate in the growth of India's digital economy by tracking an index of Indian companies operating in the internet sector, including e-commerce, online advertising, and digital payments.  

• YTD 2024 return: 16.97% 
• Assets under management: $50.9 million 
• Expense ratio: 0.86%  

iShares MSCI India Small-Cap ETF

The iShares MSCI India Small-Cap ETF (SMIN) offers exposure to small-cap companies in India, capturing growth potential from the country’s rapidly expanding businesses across industries such as industrials, consumer goods, and financials. With a focus on small-cap firms, SMIN provides investors with a way to access emerging growth opportunities within India, though it comes with higher volatility compared to large-cap-focused funds. 

• YTD 2024 return: 16.85% 
• Assets under management: $971.9 million 
• Expense ratio: 0.79%  

Schwab Fundamental Emerging Markets Large Company Index ETF

The Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE) tracks an index of emerging market stocks based on fundamental factors including sales, cash flow, and dividends/buybacks. These three metrics are combined to produce a fundamentally weighted selection universe. 

• YTD 2024 return: 16.42% 
• Assets under management: $6.5 billion 
• Expense ratio: 0.39%  

iShares MSCI South Africa ETF

The iShares MSCI South Africa ETF (EZA) offers investors a way to participate in the growth of South Africa's economy by tracking the MSCI South Africa Index, which includes large- and mid-cap companies listed on the Johannesburg Stock Exchange. 

• YTD 2024 return: 15.89% 
• Assets under management: $299.9 million 
• Expense ratio: 0.59% 

Outlook for Emerging Markets in 2025

In 2025, emerging markets present both promising growth opportunities and notable risks for investors. On the positive side, these economies, particularly in India and Latin America, are benefiting from digital transformation and rising middle-class consumption. Emerging markets with strong tech and consumer sectors are especially attractive, as urbanization and digital adoption continue to grow.  

However, risks remain due to potential for a strong U.S. dollar and increased borrowing costs for these emerging markets, impacting debt-laden companies and public budgets. Additionally, geopolitical tensions and varying inflation rates may add volatility, requiring investors to carefully weigh growth potential against these macroeconomic uncertainties.