Best Emerging Markets ETF in Australia (2026)
Emerging markets ETFs give you companies in China, India, Taiwan, Korea, Brazil and other developing economies.
Of the 4 ETFs we compared, VGE has the lowest fee (0.48% a year) and VGE is the largest ($2.2bn). EMKT had the best five-year return, +14.7% a year. Over 5 years, IEM tracked its index most closely after fees. The right one depends on your goals: read what to consider below.
Data to 30 September 2026 from the TMX Australia funds report. Returns include distributions. General information only, not a recommendation.
All the options compared
Emerging markets ETFs
| Code | ETF | Fee | Size | 1Y | 5Y a year | Spread |
|---|---|---|---|---|---|---|
| VGE | Vanguard FTSE Emerging Markets Shares ETFLowest feeLargest | 0.48% | $2.2bn | +6.0% | +5.8% | 0.07% |
| IEM | iShares MSCI Emerging Markets ETF | 0.69% | $1.8bn | +21.2% | +8.2% | 0.05% |
| EMKT | VanEck MSCI Multifactor Emerging Markets Equity ETFBest 5Y | 0.69% | $839m | +39.6% | +14.7% | 0.09% |
| FEMX | Fidelity Global Emerging Markets Active ETF | 0.99% | $165m | +14.1% | +4.0% | 0.28% |
Compare the biggest side by side → · Check how much they overlap →
Spread is the average gap between the buy and sell price: lower is cheaper to trade. 5Y a year is the average yearly total return over five years. Past performance is not a reliable indicator of future performance.
How closely each emerging markets ETF tracks its index
An index fund should return its index, less its fee. The gap below is each fund's return after fees minus its own benchmark. A gap close to zero means it has done its job well. Over 5 years, IEM tracked its index most closely, trailing it by only 0.82% a year.
| ETF and benchmark | Fee | 1Y gap | 3Y gap a year | 5Y gap a year | Verdict |
|---|---|---|---|---|---|
| IEMMSCI Emerging Markets Index (net, AUD) | 0.69% | -0.76% | -0.57% | -0.82% | Tracking well |
| VGEFTSE Emerging Markets All Cap China A Inclusion Index (AUD) | 0.48% | -1.12% | -0.77% | -0.91% | Lagging its index |
| EMKTMSCI Emerging Markets Multi-Factor Select Index | 0.69% | -1.51% | -1.48% | -1.32% | Lagging its index |
Gap = fund return after fees minus its benchmark. Issuer figures to September 2026. Hedged funds are measured against the hedged version of their index. Funds without published benchmark figures are left out. See every ETF vs its benchmark →
What to consider
- China weighting. China is a large part of most emerging markets indexes. Check how much.
- Higher fees and more volatile than developed-market funds.
- Usually a small slice of a portfolio, often 5-10%.
