3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries

Key Points

• Emerging markets may be increasingly attractive if concerns about inflation, the price and availability of oil, and interest rates continue to mount in the United States.
• ETFs are among the most direct and efficient ways to gain exposure to emerging market stocks, and a range of country-specific funds highlight different parts of the world.
• FLBR, VNM, and EWY are three stand-out EM funds focused on Brazil, Vietnam, and South Korea, respectively.

Despite a downward trend for several weeks at the beginning of the year, in spring 2026 the S&P 500 has once again shot upward, achieving fresh new all-time highs in the process. Still, even the most bullish investors may be wondering how long the trend can continue, given the prolonged war in Iran and its impacts on the global oil market—not to mention preexisting factors like inflation, aggressive interest rate hikes, and more.

That's all to say that now may be a good time to consider diversifying geographically to build non-U.S. exposure. Even though the market seems to have new momentum, maintaining access to companies outside of the United States is a good way to protect against country-specific threats. Emerging markets (EM) can be a particularly ripe area to explore as well, given their strong potential for growth and strengthening consumer trends. Of course, relatively unproven names in other parts of the world can also present new risks that investors should keep in mind, too. The exchange-traded funds (ETFs) below may be a good place to begin an EM search.

A Low-Cost, High-Momentum Entry Point to the Brazilian Market

Brazil has the largest economy in Latin America and grew by 2.3% in 2025 despite interest rate headwinds, and the Franklin FTSE Brazil ETF NYSEARCA: FLBR is one of the easiest ways for U.S. investors to access this market. One factor distinguishing FLBR from other single-country LatAm ETFs is its expense ratio: the fund will cost investors an annual fee of only 0.19%.

In exchange, investors may have to give up a bit of fund size and liquidity, as FLBR is smaller and has a lower trading volume than some of its larger rivals. Still, with $624 million in managed assets and a one-month average trading volume slightly under 500,000, this should not have a major impact.

When it comes to portfolio, FLBR targets nearly 70 larger Brazilian firms across industries, though financials, energy, utilities, and materials names dominate. A handful of large firms have outsized positions, with the largest name representing close to 12% of assets. For investors who don't mind a bit of portfolio clumping in this way, FLBR's recent track record demonstrates the savviness of its approach: the fund has returned about 30% year-to-date (YTD) and 45% in the last year.

Rare Vietnam-Focused Fund Seeks to Maintain the Past Year's Momentum

The VanEck Vietnam ETF BATS: VNM is not as cheap as FLBR—it has an annual fee of 0.68%, more than three times that of its single-country peer—but it is one of only a small handful of ETFs with a focus on this Southeast Asian nation.

Vietnam's economic growth is robust, climbing by nearly 7.7% in Q1 2026 despite the adverse impacts of the conflict in the Middle East.

VNM aims to capture that momentum—though it has essentially traded flat YTD, it is up almost 60% in the last 12 months. This is thanks to a basket of close to 60 names leaning heavily on financials, real estate, and consumer staples companies. Like FLBR above, VNM's portfolio is dominated by a couple of large firms with outsized positions. Its asset base and trading volume are roughly in line with FLBR as well, although VNM has slightly lower assets at around $568 million and somewhat higher average trading volumes.

Excellent Momentum From a South Korea-Focused Large- And Mid-Cap Fund

South Korea does not show up on every list of emerging market economies, but this nation nonetheless shares some of the appealing growth qualities of more common EMs. Across multiple ETFs focused on South Korea, the iShares MSCI South Korea ETF NYSEARCA: EWY has some of the best liquidity—the fund is close to $21 billion in size and has one-month average trading volumes around 17.5 million.

With a focus on large- and mid-cap Korean companies, EWY holds more than 80 firms, though it's important for investors to note that just two names make up about 45% of the entire portfolio. This may not be an issue, however, if EWY can maintain its incredible pace of growth into the second half of 2026: the fund is up over 65% YTD and an impressive 190% in the last 12 months.

Considering this notable performance, investors may be more willing to spend 0.59% in annual fees on EWY. The fact that the fund also pays a dividend yield of 1.3% is another point in its favor.