Top Emerging Market ETFs: VWO, EEM, SCHE — Unlocking Growth Beyond Borders

When it comes to building a globally diversified portfolio, emerging markets often offer some of the most exciting growth opportunities. While developed markets like the U.S. and Europe get plenty of attention, emerging economies in Asia, Latin America, and beyond can provide strong growth potential and diversification benefits.

To tap into this potential without the complexity of picking individual stocks or currencies, I turn to ETFs — specifically, emerging market ETFs that give broad exposure at low cost.

My favorites for emerging markets exposure are VWO (Vanguard FTSE Emerging Markets ETF), EEM (iShares MSCI Emerging Markets ETF), and SCHE (Schwab Emerging Markets Equity ETF). Here’s why these funds stand out in my investment strategy.

🌍 1. VWO – Vanguard FTSE Emerging Markets ETF

Why I Like It: VWO offers a wide-reaching portfolio across key emerging economies like China, India, Brazil, and South Africa. Vanguard’s commitment to low fees and solid tracking makes VWO a favorite for many investors looking for broad, cost-effective exposure.

Key Features:

• Expense Ratio: Just 0.10%

• Holdings: Over 5,000 stocks from emerging markets

• Strategy: Tracks the FTSE Emerging Markets All Cap China A Inclusion Index

• 10-Year CAGR: ~6.5%

  
  

My Take: VWO is a dependable core holding for emerging markets. Its broad diversification and low cost make it a great way to capture growth in developing economies while managing risk.

🌏 2. EEM – iShares MSCI Emerging Markets ETF

Why I Like It: EEM is one of the most liquid and widely recognized emerging market ETFs, providing access to large and mid-cap companies across more than 20 countries. Its MSCI-based index emphasizes quality and stability within emerging markets, making it a solid choice for investors seeking familiarity and scale.

Key Features:

• Expense Ratio: 0.68%

• Holdings: About 1,300 emerging market stocks

• Strategy: Tracks the MSCI Emerging Markets Index

• 10-Year CAGR: ~6.3%

  
  

My Take: EEM is a classic option for emerging markets exposure. While its fees are higher than some peers, the fund’s size and liquidity offer ease of trading and broad market representation.

🌐 3. SCHE – Schwab Emerging Markets Equity ETF

Why I Like It: SCHE is a rising star in emerging markets ETFs, notable for its ultra-low expense ratio and strong diversification. Like the other two, it offers exposure to the same regions but with Schwab’s investor-friendly pricing and seamless trading experience.

Key Features:

• Expense Ratio: An ultra-low 0.11%

• Holdings: Around 1,300 emerging market stocks

• Strategy: Tracks the FTSE Emerging Index

• 10-Year CAGR: ~6.4%

  
  

My Take: SCHE is ideal for cost-conscious investors who want straightforward, broad exposure to emerging markets. Its low fees and solid tracking make it a powerful tool for long-term growth.

🧭 Final Thoughts: Best Emerging Market ETFs — Growth and Diversification

VWO, EEM, and SCHE each bring unique strengths but serve the common goal of providing investors easy, affordable access to fast-growing economies outside developed markets.

Including emerging markets in your portfolio can boost growth potential, reduce concentration risk, and diversify your holdings across regions and sectors the U.S. market can’t reach. These ETFs are designed to be reliable building blocks for a global portfolio — helping you capture growth beyond borders with ease.

The information provided in this blog post is intended for general informational purposes only and should not be construed as legal or tax advice. While every effort has been made to ensure the accuracy of the information, tax laws and regulations are subject to change, and individual circumstances may vary. For personalized advice and to ensure compliance with current tax laws, it is strongly recommended that you consult with a qualified tax professional, financial advisor, or legal counsel. The author and publisher of this blog assume no responsibility for any errors or omissions, or for any actions taken based on the information contained herein.