Knowledge Tree
Emerging market stocks
Also known as: Emerging Markets stocks, Emerging-market equities
Facts (14)
Sources
Wealthfront Classic Portfolio Investment Methodology White Paper research.wealthfront.com Mar 9, 2026 6 facts
claimIn Wealthfront's retirement portfolios, increasing risk levels leads to decreased allocation to conservative assets (US bonds, TIPS, and corporate bonds) and increased allocation to aggressive assets (US stocks, foreign developed stocks, emerging market stocks, and real estate).
claimEmerging market stocks represent ownership shares in companies located in developing economies, specifically Brazil, China, India, South Africa, and Taiwan.
claimAs risk levels increase, Wealthfront's investment portfolios decrease allocations to lower-risk/lower-return assets, such as TIPS and municipal bonds, and increase allocations to higher-risk/higher-return assets, such as US stocks, foreign developed stocks, and emerging market stocks.
claimEmerging market stocks are characterized by younger demographics, expanding middle classes, and faster economic growth compared to developed countries.
claimEmerging market stocks are more volatile than US stocks and foreign developed market stocks, but are expected to deliver higher long-term returns.
claimWealthfront portfolios contain between five and seven asset classes, including US stocks, foreign developed stocks, emerging market stocks, dividend growth stocks, US bonds, US corporate bonds, municipal bonds, and TIPS.
Mapping Asset Returns to Economic Regimes: A Practical Investor's ... insight.factset.com Sep 9, 2025 4 facts
claimA 'Heating' regime, characterized by a rising Composite Leading Indicator (CLI) and rising Inflation-Trend Signal (ITS), suggests economic expansion based on demand outpacing supply, which is expected to favor cyclical and risky assets like commodities and emerging market equities.
perspectiveIn the FactSet economic regime model, the 'Heating' regime (rising CLI and rising ITS) suggests economic expansion driven by demand outpacing supply, which is expected to favor cyclical and risky assets like commodities and emerging market equities.
claimEmerging-market equities provide the highest average return among all asset classes, though this performance is accompanied by higher volatility.
claimA 'Heating Regime' (rising CLI and rising ITS) suggests economic expansion based on demand outpacing supply, which is typically expected to favor cyclical and risky assets like commodities and emerging market equities.
Iran War: Potential Impact on Global Equities - Charles Schwab schwab.com 2 facts
perspectiveCharles Schwab views international developed- and emerging-market stocks as less attractive over the near term due to negative shifts in probabilities regarding the Iran War and the potential for an energy shock to cause adverse growth, inflation, and financial condition impacts.
measurementEmerging-market stocks remain less expensive than both developed-market international and U.S. stocks as of March 5, 2026, because earnings estimates for emerging-market companies have risen faster than stock prices in 2026.
The Relationship Between Risk and Return in Different Asset Classes bi-sam.com Mar 18, 2025 2 facts
measurementBetween 1926 and 2023, Emerging Markets stocks had a historical average annual return of 11.6% and a volatility (standard deviation) of 28.7%.
measurementEmerging market stocks are classified as having a very high risk level with an expected long-term annual return of 10-13%.