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ETF Specialist

What Is an Emerging Market?

MSCI will answer this question with its June 14 announcement regarding changes to its indexes.

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In April this year, the World Bank released its 2016 edition of World Development Indicators, and for the first time, it stopped classifying countries as "developing" and "developed." According to the organization, the distinction was no longer relevant, as it aims to use a set of sustainable development goals that can be applied to all countries.

The investment world, for the most part, continues to view developed and developing (or emerging) markets as two separate allocations within a diversified portfolio. And the question "what is an emerging market" comes up when MSCI makes its annual announcement regarding market (or country) changes to its developed-markets and emerging-markets indexes.

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

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