What's in the Emerging Markets Index?

When people hear the term “emerging markets” the first thing they think of is BRIC.  And while the BRIC nations loom large in the emerging markets equity asset class, they are by no means the whole thing.  Right now we’re playing emerging markets through a fundamentally-weighted index that actually re-weights China and India lower than they’d be if we just bought the index flat out.

To illustrate the various weightings and characteristics of the traditional EM universe, I’ve pulled in a few charts from SSGA (of SPDRs fame) below…

First, here are the countries considered to be in the EM according to MSCI:

And this is the weighting breakdown by country, BRICs are about 40% – less than half:

Keep in mind how small the emerging markets still are compared to US, Europe and Japan (developed):

Finally, here’s why EM stock markets should be good bets long-term (even though there is zero correlation between stock performance and GDP over shorter timeframes):








This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. 918kiss commented on Oct 05

    … [Trackback]

    […] Find More on on that Topic: thereformedbroker.com/2012/04/11/whats-in-the-emerging-markets-index/ […]

  2. Tornado Sport Foosball Table commented on Oct 13

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2012/04/11/whats-in-the-emerging-markets-index/ […]

  3. risk assessment commented on Nov 15

    … [Trackback]

    […] There you can find 29474 more Information on that Topic: thereformedbroker.com/2012/04/11/whats-in-the-emerging-markets-index/ […]

  4. What is Functional Testing commented on Nov 27

    … [Trackback]

    […] Read More here to that Topic: thereformedbroker.com/2012/04/11/whats-in-the-emerging-markets-index/ […]

  5. Satch Schulrucksäcke commented on Jan 12

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2012/04/11/whats-in-the-emerging-markets-index/ […]

  6. Regression testing commented on Jan 17

    … [Trackback]

    […] There you can find 18042 additional Info to that Topic: thereformedbroker.com/2012/04/11/whats-in-the-emerging-markets-index/ […]

  7. Login Area commented on Jan 29

    … [Trackback]

    […] There you will find 68225 additional Information on that Topic: thereformedbroker.com/2012/04/11/whats-in-the-emerging-markets-index/ […]