Percentage Breakdown of Group's Asset Values Shown in Tabular Form
In the realm of exchange-traded funds (ETFs), MSCI Emerging Markets ETFs have been a popular choice for investors seeking exposure to up-and-coming markets. These funds track the performance of emerging economies, often including small caps in addition to large and medium-sized companies.
One such fund, the Amundi Prime Emerging Markets ETF, has a total expense ratio (TER) of 0.10% and tracks the Solactive GBS Emerging Markets Large & Mid Cap Index. Another notable ETF is the iShares MSCI EM UCITS ETF (Acc), which has a 5-year return of 31.49%.
For investors seeking the highest returns within the MSCI Emerging Markets ETF space, the UBS MSCI EM SF UCITS ETF USD acc, Invesco MSCI Emerging Markets UCITS ETF, Xtrackers MSCI Emerging Markets Swap UCITS ETF, and Amundi MSCI Emerging Markets III UCITS ETF USD Acc stand out with returns near or above 30% annually. These figures are current as of mid-2025.
These European-listed UCITS ETFs provide clear examples of leading MSCI EM index ETF returns over 5 years. It's worth noting that no specific U.S.-listed MSCI Emerging Markets ETFs were highlighted in the top performers list from tradethatswing.com, which focused on very high performers but more sector/concept specific ETFs like Bitcoin or uranium.
In addition to high returns, MSCI Emerging Markets ETFs offer diversification for investors, helping to spread risk across various markets. However, these funds tend to fluctuate more than MSCI World ETFs, making them potentially more volatile.
A common split for a portfolio is 70% MSCI World ETF and 30% MSCI Emerging Markets ETF, but many investors prefer a lower weighting of emerging markets. If an 11% share for emerging markets in a portfolio is sufficient, investing in a single ETF on the MSCI ACWI may be a better option.
It's important to note that the MSCI Emerging Markets index, calculated by Morgan Stanley Capital International (MSCI) since 1988, covers approximately 1,200 companies from 24 countries, including China, Taiwan, India, and Brazil. The index represents 85% of the market capitalization of emerging markets.
For investors who prioritise ethical investments, there are several MSCI Emerging Markets ETFs that exclude companies with significant business activities in certain areas, such as nuclear energy, tobacco, and gambling. The Amundi MSCI Emerging ESG Leaders UCITS ETF, for example, limits individual positions to 5% and excludes companies with poor ESG ratings.
In conclusion, MSCI Emerging Markets ETFs offer attractive returns and diversification for investors. While these funds can be more volatile than MSCI World ETFs, they provide a valuable opportunity to invest in up-and-coming markets. For those seeking the highest returns, the UBS, Invesco, Xtrackers, and Amundi UCITS ETFs are current top performers. For investors prioritising ethics, there are also ETFs available that exclude companies with poor ESG ratings.
Investors interested in the finance sector might consider investing in high-performing MSCI Emerging Markets ETFs, such as the UBS MSCI EM SF UCITS ETF USD acc, Invesco MSCI Emerging Markets UCITS ETF, Xtrackers MSCI Emerging Markets Swap UCITS ETF, and Amundi MSCI Emerging Markets III UCITS ETF USD Acc, offering returns near or above 30% annually. For those prioritizing ethical investments, MSCI Emerging Markets ETFs like the Amundi MSCI Emerging ESG Leaders UCITS ETF are available, excluding companies with poor ESG ratings.
