5 Best Southeast Asian ETFs to Watch in 2026 (Proven Picks)

Here’s a number that should make you pay attention: +58.1%.

That’s not a speculative crypto play. That’s not a meme stock. That’s how much the VanEck Vietnam ETF (VNM) returned over the past year — quietly, steadily, while most investors had their eyes glued to the S&P 500.

And it’s not alone. The broader ASEAN basket delivered a +22.8% total return over the same period, outpacing Wall Street. But here’s the catch: most retail investors in the US, UK, Canada, and Australia have zero exposure to this region. They’re leaving serious money on the table.

If you’ve ever wondered how to invest in Southeast Asian ETFs from the US — without opening a foreign brokerage account or wiring money abroad — this article breaks it all down. These are US-listed ETFs, fully accessible from any standard brokerage account, and they give you targeted exposure to some of the fastest-growing economies on the planet.

Let’s look at the 5 best Southeast Asian ETFs to invest in 2026, ranked from #5 to #1.

Why Southeast Asia? The Case for ASEAN Exposure in 2026

The narrative around emerging markets has shifted. For years, China dominated the conversation. But between regulatory crackdowns, geopolitical tensions, and slowing growth, institutional money has been quietly rotating into Southeast Asia — and the returns are starting to show.

ASEAN economies like Vietnam, Singapore, Malaysia, and Thailand offer a compelling mix: young, growing populations; export-driven manufacturing booms (Vietnam in particular is a direct beneficiary of supply chain diversification away from China); strong dividend yields; and relatively low equity valuations compared to developed markets.

For investors building a diversified global portfolio, Southeast Asian ETFs offer something rare: value, yield, and structural growth tailwinds — all in one package. Analysts have called emerging ASEAN an ‘under-appreciated sweet spot,’ and the data is starting to back that up.

Now, let’s rank them.

#5 — EIDO: iShares MSCI Indonesia ETF (Proceed with Caution)

Ticker: EIDO | Country: Indonesia | 1-Year Return: -7.95% | 3-Year Return: -20.82% | Dividend Yield: 4.47%

Indonesia is the fourth most populous country in the world, with a rising middle class and an enormous domestic consumer market. On paper, it should be a compelling investment.

But right now, EIDO lands at the bottom of this list for one major reason: the numbers don’t lie. A -7.95% return over one year and a brutal -20.82% over three years makes EIDO the clear underperformer in this group. Even a 4.47% dividend yield doesn’t come close to offsetting those capital losses.

What’s dragging Indonesia down? A few things. Valuation concerns have triggered institutional sell-offs, and there’s a looming threat that MSCI could downgrade Indonesia from Emerging Market status to Frontier Market status — a classification change that would force index-tracking funds to dump their Indonesian holdings, putting further downward pressure on prices.

That said, Indonesia isn’t a permanent ‘skip.’ If and when these structural issues get resolved, the long-term growth story could reassert itself. But for 2026 portfolios, the risk-reward isn’t there yet. Watch this one closely, but don’t buy it yet.

Bottom Line: Avoid EIDO until Indonesia’s market classification stabilizes and the downgrade risk is off the table.

#4 — THD: iShares MSCI Thailand ETF (Best for Dividend Income Seekers)

Ticker: THD | Country: Thailand | 1-Year Return: +43.22% | 3-Year Return: +4.61% | Dividend Yield: 2.68%–4.5% | Expense Ratio: 0.59%

Thailand’s ETF has quietly staged one of the most impressive recoveries in the Southeast Asian universe. A +43.22% one-year return is impossible to ignore — and a year-to-date gain of +24.56% shows the momentum is still building.

Here’s what makes THD interesting heading into the back half of 2026: valuations that had been stretched have now corrected, with analysts noting that the ‘valuation premium has disappeared.’ Thailand’s market is now considered undervalued relative to its regional peers, which sets up a favorable entry point for investors willing to hold for 12–24 months.

The dividend story is also improving. Yields in the 4.0%–4.5% range make THD attractive for income-focused investors, particularly those in retirement accounts looking for international yield diversification. The main knock on THD is its higher expense ratio at 0.59% — the priciest on this list — and its weaker long-term track record (only +1.95% over five years). This is a trade, not a forever hold.

Bottom Line: THD is a strong tactical play for 2026. Buy for the momentum and the dividend income, but set a clear exit target.

#3 — EWM: iShares MSCI Malaysia ETF (Best Risk-Reward Profile)

Ticker: EWM | Country: Malaysia | 1-Year Return: +19.2% | 3-Year Return: +11.5% | Dividend Yield: 4.5% | Expense Ratio: 0.48%

If you’re looking for the best risk-reward setup in Southeast Asia right now, EWM is it.

Malaysia’s ETF checks every box a value-oriented investor wants to see: a 4.5% dividend yield, the lowest expense ratio on this list at 0.48%, consistent double-digit returns over one and three years, and a 2026 outlook that analysts describe as capable of delivering 7%–8% capital returns on top of dividends. Do the math: that’s a potential 11%–12.5% total return from a low-cost, dividend-paying ETF.

What’s driving Malaysia’s outperformance? A stable political environment, strong ringgit fundamentals, and increased foreign direct investment into Malaysian manufacturing and tech sectors. Malaysia has also been a quiet beneficiary of the ‘China plus one’ strategy — global companies diversifying supply chains and looking for alternatives to Chinese manufacturing.

At 0.48%, EWM is one of the cheapest ways to access Southeast Asian exposure. For long-term, buy-and-hold investors building a global income portfolio, EWM deserves a core allocation.

Bottom Line: EWM is the sleep-well-at-night Southeast Asian ETF. Strong yield, low cost, consistent returns — it’s the backbone of any ASEAN allocation.

#2 — EWS: iShares MSCI Singapore ETF (Best for Stability and Consistent Growth)

Ticker: EWS | Country: Singapore | 1-Year Return: +22.75% | 3-Year Return: +18.10% | 5-Year Return: +8.71% | Dividend Yield: 3.91% | Expense Ratio: 0.50%

Singapore is the financial hub of Southeast Asia — and EWS reflects that stability in every metric.

Look at those returns: +22.75% over one year, +18.10% over three years, and +8.71% over five years. That’s not the explosive growth of Vietnam, but it’s something arguably more valuable for most investors: consistency. EWS has delivered positive returns across every meaningful time horizon in this comparison.

The 3.91% dividend yield adds reliable income on top of capital appreciation, and at a 0.50% expense ratio, EWS is the most cost-efficient of the non-Malaysian options on this list. Singapore’s economy benefits from world-class governance, a deeply liquid financial market, strong rule of law, and its role as a regional headquarters for major multinational corporations.

EWS’s top holdings include Singapore’s largest banks (DBS Group, OCBC, UOB), telecom giant Singtel, and real estate investment trusts — a diversified mix of blue-chip financials and income-generating assets. This makes EWS more of a developed-market ETF in feel, even though it’s classified as emerging market exposure.

For investors who want Southeast Asian diversification without the volatility of frontier markets like Vietnam or the uncertainty of Indonesia, EWS is the obvious choice. It pairs beautifully with a core US portfolio as a stable international income allocation.

If you’re also exploring broader Asia Pacific exposure, you might want to check out the

If you’re also exploring broader Asia Pacific exposure, you might want to check out the top 25 Hang Seng Index stocks ranked by weight — a useful companion read for understanding how Singapore’s financial sector compares to Hong Kong’s heavyweights.

Bottom Line: EWS is the stability anchor of any Southeast Asian portfolio. Low cost, consistent returns, and reliable dividend income make it a must-own for international diversification.

#1 — VNM: VanEck Vietnam ETF (Best for Growth — Top Southeast Asian ETF in 2026)

Ticker: VNM | Country: Vietnam | 1-Year Return: +58.1% | 5-Year Return (52-week basis): +33.1% | Dividend Yield: 5.53% | Expense Ratio: 0.68%

There’s no debate here. VNM is the standout performer of 2026 in the Southeast Asian ETF universe — and it’s not particularly close.

+58.1% over one year. A 5.53% dividend yield — the highest on this entire list. Strong earnings growth from its top holdings. Vietnam has become one of the most exciting emerging market stories of the decade, and VNM is the cleanest way to access it from a US brokerage account.

What’s fueling Vietnam’s rally? Vietnam is one of the primary beneficiaries of the global supply chain restructuring away from China. Major manufacturers — from Samsung to Intel to Nike — have relocated significant production capacity to Vietnam. This has driven a surge in factory output, export revenue, GDP growth, and corporate earnings. The manufacturing boom is real, it’s structural, and it’s not going away.

VNM’s top holdings tell that story clearly: Vingroup (8.4%) and Vinhomes (8.2%) dominate the fund, giving investors exposure to Vietnam’s largest conglomerate and its premier real estate developer. These aren’t speculative small-caps — they’re the blue-chip backbone of the Vietnamese economy.

Yes, there are caveats. VNM carries the highest expense ratio on this list at 0.68%, and Vietnam is classified as a frontier market, meaning it carries more volatility than Singapore or Malaysia. Liquidity in individual Vietnamese stocks can be thin, and the ETF’s three-year return data is limited. But when a fund returns +58.1% in a year while paying a 5.53% dividend, those are the kinds of problems investors are happy to have.

For investors comfortable with emerging market volatility, VNM is the highest-conviction play in Southeast Asia right now. It’s growth AND income in a single ticker.

If you want to expand your Asia exposure beyond Vietnam, also check out our breakdown of the 10 best Chinese stocks to buy — another high-growth Asian market that sophisticated investors are watching closely.

Bottom Line: VNM is the #1 Southeast Asian ETF for 2026. Maximum growth potential, highest dividend yield, and a structural bull case that’s still in its early innings.

Key Performance Comparison (2026)

ETF	Country	1-Yr Return	3-Yr Return	5-Yr Return	Div. Yield	Exp. Ratio
VNM	Vietnam	+58.1%	N/A	+33.1%	5.53%	0.68%
EWS	Singapore	+22.75%	+18.10%	+8.71%	3.91%	0.50%
EWM	Malaysia	+19.2%	+11.5%	+0.8%	4.5%	0.48%
THD	Thailand	+43.22%	+4.61%	+1.95%	2.68%	0.59%
EIDO	Indonesia	-7.95%	-20.82%	-5.46%	4.47%	N/A

Source: VanEck, iShares, MarketBeat, ETF Research Center. Data as of mid-2026.

How to Build a Southeast Asian ETF Portfolio in 2026

Southeast Asia works best as a regional allocation — not a single-country bet. The data backs this up: the ASEAN basket as a whole delivered +22.8% total return in the past year, demonstrating the value of diversification across different economies at different stages of development.

A simple, balanced ASEAN allocation for 2026 might look like this: VNM as the growth core (highest return potential), EWS as the stability anchor (consistent returns, lowest volatility), and EWM for the risk-reward sweetspot (best yield + lowest cost). THD can add dividend income if that’s a priority, while EIDO is best watched from the sidelines until the MSCI downgrade risk clears.

For investors who are newer to ETF investing generally, our guide to the 10 best Vanguard ETFs for beginners is a great starting point for building the US-focused foundation of your portfolio before adding international allocations like these.

The key takeaway: don’t pick one country and go all in. Spread your ASEAN exposure across two or three of these ETFs, and let the regional diversification do the heavy lifting.

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Frequently Asked Questions

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Final Verdict: The Best Southeast Asian ETFs for 2026

Southeast Asia is no longer a footnote in global investing — it’s becoming the main event. With the ASEAN basket outperforming the S&P 500, Vietnam delivering near-60% annual returns, and Singapore providing the kind of steady, income-generating stability that institutional portfolios are built on, the case for ASEAN exposure has never been stronger.

Here’s your 2026 ASEAN playbook:

VNM is your growth engine — the highest returns, highest dividend yield, and strongest structural tailwinds. EWS is your stability anchor — consistent, low-cost, reliable. EWM is your value play — best risk-reward, cheapest expense ratio outside Singapore, and a compelling 2026 total return outlook. THD adds dividend income if that’s a priority. And EIDO stays on the watchlist until Indonesia’s market story improves.

You don’t need to trade on the Ho Chi Minh Stock Exchange or open a Singapore brokerage account to access these opportunities. These ETFs trade right on US exchanges, and they’re available to any investor willing to look beyond their home market.

The question isn’t whether Southeast Asia belongs in a diversified 2026 portfolio. The question is how much.