Investing term

What is Emerging markets (EM)?

Stock markets in faster-growing, less mature economies — China, India, Brazil, Taiwan, South Korea, Mexico, etc.

Emerging markets (EM) are stock markets in faster-growing but less mature economies — China, India, Brazil, Taiwan, South Korea, Mexico and others. They offer higher growth potential along with higher volatility, political risk, and currency swings. A globally diversified portfolio typically holds a modest EM slice for that growth exposure, sized to its bumpier ride.

For example

An emerging-markets fund might surge 25% in a strong year and fall 25% in a weak one — more reward and more risk than a developed-markets fund.

Emerging markets (EM) is taught hands-on in Stage 19 — Beyond Stocks.

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