Emerging Markets ETF Australia: VGE, VAE and EMKT Compared (2026)

Last updated: Q2 2026. Figures are computed from ETFLens data as at Q2 2026, sourced from each issuer's published disclosure documents and reviewed quarterly.

Most global share ETFs on the ASX, such as VGS, cover only developed markets and leave out the developing world entirely. An emerging markets ETF fills that gap, adding exposure to economies such as Taiwan, India, Brazil and South Africa. This guide on emerging markets ETF ASX options compares the main funds, VGE and VAE, with live data, explains where EMKT fits, and sets out the factual points to weigh. It is general information only and not a recommendation.

This article is general information only and not personal financial advice. ETFLens does not hold an Australian Financial Services Licence (AFSL).

Emerging market ETFs available on the ASX

The two broad funds covered here with live data are VGE and VAE.

• VGE (Vanguard FTSE Emerging Markets Shares) tracks a broad emerging markets index, charges 0.48% p.a., holds approximately 6,515 companies and has a fund size of approximately $1.9B. It distributes Quarterly with a recent yield of approximately 2.3%. Past performance is not a reliable indicator of future returns.
• VAE (Vanguard FTSE Asia ex Japan Shares) is narrower geographically, focused on Asia. It charges 0.4% p.a., holds approximately 1,936 companies and has a fund size of approximately $814M, distributing Quarterly with a recent yield of approximately 2.6%. Past performance is not a reliable indicator of future returns.
• EMKT is another emerging markets ETF listed on the ASX. ETFLens does not currently track EMKT in its dataset, so this guide does not quote its fee or size; check the issuer's product disclosure statement for current figures.

VGE vs VAE: key differences

VGE and VAE both lean heavily on Asia, but they are not the same fund.

Feature	VGE	VAE
Scope	Broad emerging markets	Asia ex Japan
MER	0.48% p.a.	0.4% p.a.
Holdings	approximately 6,515	approximately 1,936
Fund size	$1.9B	$814M
Top country	Taiwan (23.8%)	Taiwan (24.1%)
India weight	9.2%	9.8%

The biggest difference is scope. VGE reaches across Latin America, the Middle East, Africa and emerging Europe as well as Asia, while VAE is concentrated in Asia and includes developed Asian markets such as Hong Kong and Singapore. VAE is therefore not a pure emerging markets fund.

What is the overlap between these ETFs?

Because both funds are Asia-heavy, they hold many of the same large companies, so their holdings overlap is meaningful. The ETFLens estimate puts the VGE and VAE overlap at approximately 86%. That matters if you are tempted to hold both: a high overlap means you are paying two fees for substantially similar exposure. Confirm it yourself, and test any pairing, with the ETFLens Overlap Checker (try VGE vs VAE, or VGE vs your global fund).

How emerging markets ETFs compare to developed market ETFs

Set against a developed markets fund like VGS, which holds around 73.1% in the United States, emerging markets funds are a different animal. They carry different country composition, different currency exposure and, historically, higher volatility. Past performance is not a reliable indicator of future returns. Because VGS holds developed-market companies and VGE holds emerging-market companies, they share essentially no holdings, which is why some investors hold them as complements rather than substitutes. For the developed-market counterpart, see our VGS vs VEU comparison.

Things to consider when looking at emerging market ETFs

Factual points to weigh, none of which is advice:

• Country concentration. Both VGE and VAE are concentrated in a handful of Asian markets led by Taiwan. How a provider classifies Chinese companies (by listing location) can shift the country breakdown, so the same economic exposure may appear under different country labels across funds.
• Currency risk. These funds are unhedged, so your return also reflects movements between the Australian dollar and a basket of emerging-market currencies.
• Liquidity of underlying holdings. Some emerging markets are less liquid than developed ones, which can affect trading.
• Fee versus developed funds. Emerging markets ETFs typically charge more than a developed-market index fund; weigh the added exposure against the higher MER on the screener.

Whether emerging markets exposure suits your situation, and in what amount, depends on your objectives and circumstances, which ETFLens cannot assess. For the broader question of how many funds to hold, see how many ETFs you actually need.

A note on volatility and time frame

Emerging markets have historically shown wider swings than developed markets, with longer stretches of both underperformance and outperformance. The reasons include less mature financial systems, greater political and currency variability, and heavier concentration in a handful of large companies and sectors. Past performance is not a reliable indicator of future returns. For that reason, emerging markets exposure is generally treated as a longer-term, higher-risk part of a portfolio rather than a short-term position. How much of it suits you, if any, depends on your time frame, objectives and circumstances, which ETFLens cannot assess. You can size a position against the rest of your holdings with the overlap checker and the screener.

This article is general information only and not personal financial advice. ETFLens does not hold an Australian Financial Services Licence (AFSL). Consider your own objectives, financial situation and needs, or speak with a licensed financial adviser before making investment decisions. Past performance is not a reliable indicator of future returns.