Skip to Content
US Videos

Signs of Life in Emerging Markets?

Morningstar's Gregg Wolper discusses some factors that have buoyed diversified emerging-markets funds lately.

Mentioned:

Gregg Wolper: One of the most welcome developments for many investors so far this year has been the recovery of the Morningstar diversified emerging-markets category. That covers funds that invest around the world in emerging markets, not just one country or region.

Now, last year, 2015, was terrible for emerging-markets funds. Plummeting currencies really hurt them, and also political turmoil and economic weakness in Brazil, one of the biggest emerging markets, really took its toll. This year things have turned around, especially in the past month or so. And there are several reasons; one is the recovery of the currencies. That has a tremendous impact on U.S. investors. And investors around the world who look at emerging markets, they have become more optimistic--not completely rosy, but just a lot better than they were last year. So, the emerging-markets currencies have risen. Brazil's has done very well. South Africa's has done very well. And also the outlook doesn't look quite as dire as it used to. Therefore, the diversified emerging-markets category is actually the second-best performer of all the Morningstar international-stock categories this year. It's not up that much, but it's up, and that's better than the losses in many of the other ones. It's actually better than all of the U.S. stock categories as well--the ones that focus on the style box categories.

Gregg Wolper does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.