Vanguard FTSE Emerging Markets ETF

VWO

Market cap $121B

When Chinese equities perform well, the fund benefits from that allocation. When China struggles, the country's weighting can become a drag on overall emerging market returns.

The State Street SPDR MSCI ACWI Climate Paris Aligned ETF screens for global companies aligned with Paris climate goals, whereas the Vanguard FTSE Emerging Markets ETF provides broad exposure to stocks in developing nations. The Vanguard FTSE Emerging Markets ETF offers a lower expense ratio and a higher trailing-12-month dividend yield compared to the State Street SPDR MSCI ACWI Climate Paris Aligned ETF.

The action in Emerging Markets ETFs this year has been really interesting to watch. From record-breaking asset flows to impressive results, albeit massively dispersed, this category of funds has had quite a ride so far in 2026.

The outlook for long-term total return for the Global Market Index (GMI) edged up again in June, touching the highest level in recent history. Despite the recent rise, the expected performance remains well below GMI's realized return over the trailing ten-year window.

Open your brokerage app and check the allocations. If you own a target-date fund, an S&P 500 index fund, or a portfolio your advisor built in the last decade, odds are nine out of every ten dollars sit in US stocks.

Vanguard FTSE Developed Markets ETF offers exposure to established international economies like Canada and Europe whereas Vanguard FTSE Emerging Markets ETF targets developing nations such as China and Brazil. Vanguard FTSE Developed Markets ETF carries a lower expense ratio of 0.03% compared to 0.06% for Vanguard FTSE Emerging Markets ETF.

Vanguard's Total World Stock and FTSE Emerging Markets ETFs both maintain low expense ratios of 0.06%. Vanguard FTSE Emerging Markets ETF offers a higher dividend yield of 2.4% compared to 1.6% for the total world fund.

The State Street SPDR Portfolio Developed World ex-US ETF offers a lower expense ratio and a higher dividend yield than the Vanguard FTSE Emerging Markets ETF. The State Street SPDR Portfolio Developed World ex-US ETF has delivered higher total returns over the past year and the last five years.

If you hold iShares MSCI Emerging Markets ETF (NYSEARCA:EEM), BlackRock skims 0.69% of your account every year before you see a single dividend.

Vanguard Total International Stock ETF provides exposure to both developed and emerging markets at a lower cost than the emerging-markets-only fund Vanguard FTSE Emerging Markets ETF has higher volatility and a larger maximum drawdown over the past five years compared to the broader international fund Technology makes up nearly one-third of the Vanguard FTSE Emerging Markets ETF portfolio while the broader fund is more balanced across finance and industrials