Emerging Markets



Portfolio Role

Emerging Market funds focus on the cap-weighted companies of up-and-coming countries not yet considered fully developed.  They are popular in many portfolios as a source of perceived growth and as a potential hedge against correlated stock struggles of developed countries.


Country Coverage

Emerging market funds hold a wide variety of countries, but the most important four are sometimes also referred to as the BRIC countries:

  • Brazil
  • Russia
  • India
  • China



Emerging markets are quite volatile and are generally considered riskier than developed markets.  While they may backtest well, investors should be careful about overloading their portfolios based on averages alone.