Investors are becoming more selective in their regional allocations as macro tensions and questions around the validity of broad emerging market benchmarks increase the appeal of single-country ETFs.
While disparate monetary policy pathways and reconfiguration of supply chains represent known unknowns, greater uncertainties may emerge as more than four billion people head to the polls in 2024.
“When it comes to emerging markets, some of our clients have stopped treating it as a monolith,” Saurabh Katiyar head of index solutions research, EMEA, at MSCI, told ETF Stream. “Geopolitics is driving demand for a more selective emerging market view.”
As the toolkit of targeted, low-cost products expands, ETF Stream has highlighted five ETFs that could deliver outperformance in 2024.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.
