How to invest in emerging markets
There is more than one way to invest in a foreign market. This guide explains the main routes and the terms you'll see across the site. It is educational — not advice.
Who is this for?
Two kinds of researcher: a US-based investor who wants to diversify abroad and is weighing which markets may outperform; and someone relocating overseas — perhaps for a golden visa or second passport — who needs to invest in, or understand, a specific country.
What is an emerging market?
An emerging market is an economy that is growing toward developed-world status but still carries higher political, currency and liquidity risk. Index providers such as MSCI and FTSE classify countries as developed, emerging or frontier; classifications differ and change over time.
Emerging vs. frontier markets
Think of it as a spectrum. Developed markets — the US, Japan, Germany — are large, liquid and tightly regulated. Emerging markets such as China, India and Brazil are big, fast-growing economies that are increasingly open to foreign investors but still carry more currency, political and liquidity risk. Frontier markets such as Vietnam, Nigeria and Kazakhstan sit one step earlier: smaller and less liquid, with the highest potential return and the highest risk.
The line between the three is drawn by index providers such as MSCI, and it shifts as markets mature or stumble. This site tracks 24 emerging and 38 frontier markets, grouped by MSCI's classification.
Browse 24 emerging markets → Browse 38 frontier markets → How we classify countries →
Four ways to get exposure
From simplest to most hands-on:
1. US-traded ETFs
Buy a single-country or regional ETF in your normal brokerage account. Easiest access, instant diversification, but you pay an annual expense ratio and don't pick individual companies.
Browse the ETF directory →2. ADRs & cross-listings
Some foreign companies also trade in the US as American Depositary Receipts. You can buy these like any US stock, choosing specific companies without a foreign account.
3. Direct on the local exchange
Open access to the country's own exchange through a global broker (e.g. Interactive Brokers, Saxo) or a local broker. The widest choice of companies, but more paperwork, currency conversion and local rules.
4. Investment for residency
Some countries grant residency or citizenship in exchange for a qualifying investment (a 'golden visa'). The investment may be in real estate, a fund or a business rather than listed shares.
Compare residency programs →Risks to understand
Higher potential return comes with higher — and different — risks than a developed market. These are the ones specific to emerging and frontier investing.
Currency risk
You are exposed to the local currency. A market can rise in its own terms while you still lose money once it is converted back to dollars — and frontier currencies swing the most.
Political & policy risk
Elections, capital controls, sanctions and outright expropriation can strand foreign investors quickly. When Russia was sanctioned in 2022, the index funds holding it were written down to zero and foreign holdings were frozen.
Liquidity risk
Trading can be thin, especially in frontier markets — wider spreads, fewer listed companies, and funds that are hard to exit when everyone heads for the door at once.
Concentration risk
Single-country funds ride one economy, and even broad emerging-market funds lean heavily on a few countries and sectors — China's weight, or energy, financials and state-owned firms.
Fund & access risk
The vehicle itself can disappear: ETFs are liquidated, ADRs are terminated, and some markets cap foreign ownership. Several funds listed on this site are flagged 'Delisted' for exactly this reason.
Transparency & governance risk
Financial reporting is less standardised, minority-shareholder protections are weaker, and some of the largest companies are state-owned enterprises run for policy rather than profit.
Reclassification risk
When a market moves between developed, emerging and frontier status, index funds are forced to buy or sell — driving flows and volatility. A country demoted to 'standalone' can lose liquidity fast.
Common questions
What is the difference between emerging and frontier markets?
Both are developing economies, but emerging markets — for example China, India or Brazil — are larger, more liquid and easier for foreign investors to reach. Frontier markets — such as Vietnam, Nigeria or Kazakhstan — are smaller and earlier-stage, with higher potential return and higher risk. Index providers such as MSCI decide which is which and reclassify countries as they develop.
How can I invest in emerging markets from the United States?
The simplest route is a US-traded ETF, which you can buy in an ordinary brokerage account. You can also buy individual foreign companies that list in the US as ADRs, or open access to a country's local exchange through a global broker. Each country page lists the ETFs, ADRs and local-exchange options that apply.
What is the difference between an ETF and an ADR?
An ETF is a fund — a basket of many companies that trades like a single stock, giving instant diversification for an annual fee. An ADR is a US-traded certificate representing shares in one specific foreign company. ETFs spread risk across a whole market; ADRs let you pick individual companies.
Are emerging-market ETFs risky?
They carry more risk than developed-market funds: prices swing more, currencies can move against you, and political or liquidity shocks are more common. A diversified, low-cost ETF spreads that risk across many companies, but does not remove it — and frontier-market funds are riskier still.
What is a golden visa?
A golden visa is residency — sometimes a route to citizenship — granted in exchange for a qualifying investment in a country, such as real estate, a government fund or a business. It buys the right to live somewhere rather than a stake in the stock market, though the two often overlap for people relocating abroad.
Which emerging market should I invest in?
There is no single answer: it depends on your goals, your risk tolerance and your view of each economy. This site is built to help you compare markets on the data — growth, market size, valuations and the funds available — rather than to recommend one. It is research, not advice.
Glossary
- Emerging market
- A fast-developing economy with higher growth potential and higher risk than a developed market.
- Market capitalisation
- The total value of a company's shares (share price × shares outstanding). Used to rank company and market size.
- ADR
- American Depositary Receipt — a US-traded certificate representing shares in a foreign company.
- ETF
- Exchange-traded fund — a basket of securities that trades like a single stock.
- Expense ratio
- The annual fee a fund charges, as a percentage of assets. Lower is cheaper to hold.
- Golden visa
- A residency or citizenship route granted in exchange for a qualifying investment in a country.
- Withholding tax
- Tax a country deducts from dividends or interest paid to foreign investors before it reaches you. Rates vary by country and may be partly reclaimable under a tax treaty.
This guide is general information, not personalised financial, tax, legal or immigration advice.