Goldman Sachs Predicts Emerging Markets Stocks to Rally - Here Are the Sector’s Top ETFs to Watch

Emerging markets are heating up again - and the big players are taking notice.

The Goldman Stamp of Approval

When Goldman Sachs talks rally forecasts, markets listen. The investment giant's latest analysis signals fresh momentum building across developing economies. Their track record suggests this isn't just another flash in the pan prediction.

ETF Hunting Ground

The real action lies in identifying which funds capture this emerging wave. Top-performing ETFs in the sector typically cluster around specific geographic and thematic exposures. Smart money flows toward vehicles with proven management and liquidity profiles.

Timing the Tides

Emerging markets move in cycles - and catching the right wave separates winners from tourists. Current valuations suggest we're early in this particular upswing. Though as any seasoned investor knows, Wall Street forecasts have about the same accuracy as weather predictions in London.

The emerging markets playbook remains simple: diversify, watch currency risks, and remember that today's darling can become tomorrow's cautionary tale.

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The Goldman report explains that a weak U.S. dollar, investor interest in geographical diversification, and strong company earnings are all catalysts for emerging markets’ growth. Backed by its belief in these markets, Goldman Sachs Research has raised its forecast. It now expects the MSCI EM index to reach 1,480 over the next 12 months, reflecting growth in price returns of around 7.80%.

For context, the MSCI EM index is a benchmark index that measures the performance of large and mid-cap companies in 24 emerging market countries.

Furthermore, the Goldman Sachs report predicts that company earnings in emerging markets will grow 9% in 2025, and 14% in 2026. Stronger tech and greater demand for AI, particularly in Chinese, Taiwanese, and South Korean companies, are the key reasons for these raised earnings expectations.

Which Emerging Markets ETFs are Best?

Year-to-date, multiple emerging markets ETFs have produced bumper returns. Using TipRanks’ Compare ETFs chart, we have identified the top-performing emerging markets ETFs so far in 2025.

GREK (Global X MSCI Greece ETF), which gives exposure to the Greek markets, comes out ahead, with 64.7% growth year-to-date.

KEMQ (KraneShares Emerging Markets Consumer Technology Index ETF), which offers exposure to the information technology sector of emerging markets, is next, with 58% growth year-to-date.

Right behind that is EZA (iShares MSCI South Africa ETF), providing exposure to the South African equities market. EZA has increased by 56% year-to-date.

FRDM (Freedom 100 Emerging Markets ETF) holds companies from countries that have relatively higher scores of personal and economic freedoms. The FRDM ETF has also performed robustly in 2025, showing a 42.1% increase year-to-date.

Interested in learning more? Research all ETFs at TipRanks’ ETF Center.