MSCI examines how emerging markets have evolved over three decades and what their future role may look like in global portfolios. The paper highlights how China’s rising dominance could reshape the asset class, even raising questions about whether emerging markets remain a distinct allocation.
The Future of Emerging Markets
MSCI
Dimitris Melas
Research
33 Pages
Key Takeaways
Expanding Market Share: Emerging markets grew from under 1% of global equity weight in 1987 to nearly 12% by 2019, reflecting rapid structural expansion and deeper global integration.
China Concentration Risk: China already represents about 30% of the index and could exceed 40% with full A-share inclusion, potentially shifting diversification dynamics.
Diversification Still Relevant: Historical data shows emerging markets delivered positive excess returns with low correlation, improving portfolio efficiency despite periods of volatility.
Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week
