How does Emerging markets (MSCI Emerging Markets) work in practice?

The MSCI Emerging Markets (MSCI EM) index is the primary benchmark for emerging market equities. It covers approximately 1,400 large and mid-cap stocks in 24 emerging countries: Brazil, China, South Korea, India, Taiwan, Mexico, South Africa, Thailand, and others. Geographic composition (2026) China: ~27% (including A-shares, H-shares, ADRs) India: ~20% (growing strongly) Taiwan: ~16% South Korea: ~11% Brazil: ~5% Other 19 countries: ~21% Emerging market specific risks Political and geopolitical risk (China regulation, Taiwan tensions) Currency risk (less stable currencies) Higher volatility:

Indices & markets

Emerging markets (MSCI Emerging Markets)

The MSCI Emerging Markets index covers large caps in 24 emerging countries: China, India, Taiwan, Brazil... High growth potential with greater volatility.

The MSCI Emerging Markets (MSCI EM) index is the primary benchmark for emerging market equities. It covers approximately 1,400 large and mid-cap stocks in 24 emerging countries: Brazil, China, South Korea, India, Taiwan, Mexico, South Africa, Thailand, and others.

Geographic composition (2026)

China: ~27% (including A-shares, H-shares, ADRs)
India: ~20% (growing strongly)
Taiwan: ~16%
South Korea: ~11%
Brazil: ~5%
Other 19 countries: ~21%

Emerging market specific risks

Political and geopolitical risk (China regulation, Taiwan tensions)
Currency risk (less stable currencies)
Higher volatility: MSCI EM ~18-22% annual vs ~15% for MSCI World
Weaker corporate governance in some countries
Liquidity risk on less developed markets

Main MSCI EM ETFs

AEEM (Amundi MSCI Emerging Markets): TER 0.20%, synthetic, PEA-eligible
IEMA (iShares Core MSCI EM IMI): TER 0.18%, physical (includes small caps)

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