Emerging Markets: The Untapped Frontier for Explosive Growth
Emerging markets (EM) represent a structural opportunity for long-term capital appreciation, driven by profound economic and social transformations. These regions are projected to account for 60% of global GDP by 2026, yet their equities make up only 13% of international market capitalization. This mismatch underscores a significant investment opportunity as EM capital markets mature.
The demographic and GDP growth trends in EM nations suggest rapid expansion over the coming decades. Investors seeking exposure to this growth often turn to ETFs, which provide diversified access to these high-potential markets. The underrepresentation of EM equities in global portfolios highlights a mispricing that could correct as these economies evolve.