Percentage breakdown of the overall asset value for the group, as indicated in the table below:
In the world of investment, emerging markets have been a significant player, offering higher returns compared to developed markets. According to data from 1988 to 2019, the average annual return of the Emerging Markets ETF was 10.64%, compared to 7.81% for the MSCI World.
As of mid-2025, several Emerging Markets ETFs have shown strong performance, indicating potential for high 5-year yields. While specific 5-year yield figures are not readily available, performance data and fund popularity provide strong indicators.
The Global X MSCI Argentina ETF (ARGT) and KraneShares Hang Seng TECH Index ETF (KTEC) are among the highest performers, boasting 1-year returns of 48.99% and 45.32%, respectively. These returns suggest strong multi-year growth trends likely translating into high total yields.
The iShares MSCI Emerging Markets ETF (IEM) and Vanguard FTSE Emerging Markets Shares ETF (VGE) are well-known funds with broad, large-cap exposure to emerging markets. IEM, which tracks the MSCI Emerging Markets Index, has had consistent gains, making it a top candidate for favorable 5-year yields.
The VanEck Emerging Markets Fund outperformed the MSCI EM IMI Index in Q2 2025, driven by strong stock selection in Brazil and India, indicating potential for above-average multi-year performance.
For precise 5-year yield percentages, investors should consult current fund fact sheets or financial data platforms. However, these ETFs represent some of the top candidates in terms of emerging markets exposure and historical performance consistent with strong 5-year total returns.
It's worth noting that the MSCI Emerging Market Index represents 85% of the economies of emerging markets based on market capitalization. Regular rebalancing has been scientifically proven to often provide long-term yield advantages. Rebalancing a portfolio that includes both MSCI World and Emerging Markets ETFs is necessary to maintain the desired percentage allocation.
For those interested in sustainable investing, the iShares MSCI EM SRI ETF is particularly rigorous, excluding many companies that do not meet certain ethical standards and only including those with a high rating in environmental, social, and corporate governance (ESG) in their sector.
Investors have a wide range of funds to choose from when it comes to ETFs tracking the MSCI Emerging Markets Index, with major ETF issuers like iShares, Xtrackers, SPDR, Amundi, and UBS offering options. The IMI suffix in Emerging Markets ETFs stands for Investable Market Index, which tracks not only large and medium-sized companies but also small caps, covering approximately 99% of the market capitalization-based economic activity in each country.
Political risk in emerging markets can be difficult to calculate due to possible state interventions and authoritarian regimes. However, sustainable Emerging Markets ETFs exclude companies active in business areas involving fossil fuels, controversial weapons, tobacco, and other controversial industries.
In conclusion, Emerging Markets ETFs offer attractive returns and diversify risk for investors. By carefully considering the performance, expense ratio, and sustainability factors, investors can make informed decisions when selecting the best Emerging Markets ETF for their portfolio.
Other investors might find it beneficial to consider the Global X MSCI Argentina ETF (ARGT) and KraneShares Hang Seng TECH Index ETF (KTEC), as they have shown strong performance and high 1-year returns, potentially indicating promising multi-year growth trends. For those interested in sustainable investing, the iShares MSCI EM SRI ETF is a notable option, as it excludes several companies that do not meet certain ethical standards.
