Entering 2023, there were expectations that this could finally be the year that emerging markets equities give investors something to cheer about following a lengthy run of laggard status.
While the year is still in its early innings, there’s evidence to suggest that the above thought could play out as 2023 unfolds, as the widely observed MSCI Emerging Markets Index is higher by almost 9%, as of January 17. Should that performance continue, investors could be compelled to examine exchange traded funds such as the SPDR Bloomberg SASB Emerging Markets ESG Select ETF (REMG).
REMG could be at the right place at the right time because on the back of its COVID-19 reopening, China is expected to be a global growth leader. Plus, other emerging economies are tipped to contribute to the cause.
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.