Markets

The many faces of EM investing

Aggie11 / Shutterstock
Aggie11 / Shutterstock

Emerging markets (EMs) have grown substantially, both as an economic force and an asset class. When the MSCI Emerging Markets Index was launched nearly three decades ago, in 1988, investing in stocks of developing countries was a niche strategy for large investors. Take a look at the chart below. Back then, the EM index represented just 10 countries and less than 1% of world market capitalization. Today, it's a very different picture. The index has grown to 23 countries representing 11% of world market cap. China (added to the index in 1996), once a mere 0.5% sliver, now consumes more than a quarter of the index.

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Not your father's asset class

the recent uncertainty around emerging markets

1. Dedicated investor base

2. Divergence among economies

across-the-board economic growth India

3. Rise of the local investor

4. Development of bond markets

local fixed income markets

5. Easier access through ETFs

Breaking up the set

single-country ETFs

Rounding out the toolkit

IEMG EEMV INDA EIDO MCHI Martin Small is the Head of U.S. iShares and a regular contributor to The Blog .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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