The best MSCI Emerging Markets ETF
When choosing a suitable emerging markets ETF, you basically have the choice between distributing and accumulating (reinvesting) ETFs. For example, if you prefer a distributing ETF, you can use your capital in ComStage Emerging Markets UCITS ETF (ISIN LU0635178014 / WKN ETF127). This ETF fund synthetically tracks the MSCI Emerging Markets index. Anyone who invests in the ComStage ETF must expect annual running costs (TER) of 0.25 percent. In the fund test by Stiftung Warentest, this fund received the award “1. Choice”.
The distributing one UBS MSCI Emerging Markets UCITS ETF (USD) A-dis (ISIN LU0480132876 / WKN UB42AA) is slightly more expensive than the ComStage ETF in terms of TER at 0.23 percent per year. The replication is physically optimized. With over $ 1.5 billion, the UBS fund is one of the ETFs with the largest fund volume. This fund also received the rating “1. Choice”.
Those who prefer to buy a reinvesting ETF on the MSCI Emerging Markets Index can go to Amundi MSCI Emerging Markets UCITS ETF EUR (C) (ISIN LU1681045370 / WKN A2H58J). The ETF replicates the underlying index synthetically, with running costs (TER) of 0.20 percent per year, the Amundi ETF is very cheap in a product comparison. The ETF fund manages assets of approximately 5.5 billion euros. Stiftung Warentest also describes this exchange-traded index fund as “1st choice”.
Reinvesting is also cheap Xtrackers MSCI Emerging Markets UCITS ETF 1C (ISIN IE00BTJRMP35 / WKN A12GVR) with a TER of 0.20 percent per year. Xtrackers uses optimized sampling as a replication method. Although the fund is still very young, the Xtrackers MSCI Emerging Markets ETF already has a fund volume of more than 1.1 billion US dollars.
Our recommendation: Investing in emerging market ETFs is a cheap and time-saving alternative to a direct investment. Thanks to the large number of different emerging market indices and emerging market ETFs, investors can also choose an individual focus for their investment with index funds.