Why invest in emerging markets?
Capitalizing on the growth opportunity in emerging markets takes more than just an investment in the conventional benchmark index.
Emerging markets are an opportunity for growth-oriented investors — they are almost 40% of global GDP, and demographic trends suggest this will continue to grow. However, simply buying into the emerging market benchmark index provides little exposure to the largest growth opportunity. The big story in emerging markets today is the consumer sector. The rising affluence of more than three billion largely emerging market consumers is causing this sector to grow more rapidly than emerging markets as a whole. Emerging market benchmarks only have modest exposure to the consumer sector, accounting for about 15% of assets. In this video Ed Kerschner discusses how investors who are attracted to emerging markets can get the most out of their investment.
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