Are Emerging Markets Worth the Risk?

Greater risk often comes with greater returns, but in emerging markets the benefits aren't what they used to be

Marco Caprotti 27 May, 2021 | 9:42AM
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Equities in emerging countries are slowing down after a good run in 2020 and the first part of 2021. But many investors may now be starting to wonder if it still makes sense to focus on an asset that has always been considered useful in terms of diversification but which, even when things go well, carries abundant risks.

The Morningstar Emerging Markets Index in the month  to May 6) gained just 0.1%, bringing the year-to-date performance to 4.9% (18.4% in 2020). In four weeks, the Global Markets basket recorded 2.25% (9.7% since January; 16% in 2020).

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Marco Caprotti

Marco Caprotti  è Giornalista di Morningstar in Italia.

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