How 4 Emerging-Market Funds Have Performed Since Their Latest Upgrades

Emerging-market stocks staged a notable comeback in 2025, snapping a multiyear streak of underperformance relative to developed markets. A weaker US dollar, easing global interest rate pressures, and resilient economic growth across key economies in Asia, Latin America, and the Middle East all contributed to the rally. In addition, commodities that are produced in emerging markets, such as gold and oil, surged. Geopolitical conflict and a stronger dollar stalled that momentum in the first quarter of 2026, but the pullback appeared short-lived. Artificial intelligence-related spending continues to bolster multiple regions.

Here’s how four funds in the diversified emerging-markets Morningstar Category have performed since earning their current Morningstar Medalist Rating pillars.

Dodge & Cox Emerging Markets Stock DODEX

This Gold-rated fund’s Process Pillar was upgraded to Above Average in April 2025. Since then, its 61.1% cumulative return through May 2026 beat the average category peer by about 4 percentage points. An efficient mix of analyst research and quantitative tools earned this strategy its Above Average Process rating. The portfolio typically shares 15-25 holdings with Dodge & Cox International Stock DODFX, where the firm’s analysts thoroughly scrutinize all holdings. The firm’s quantitative model extends the portfolio’s reach by screening for features that Dodge & Cox’s analysts like, such as cheap stocks of firms with good management teams and decent growth prospects.

Fidelity Emerging Markets FEMKX

This fund’s Process Pillar earned an upgrade to Above Average in April 2022, thanks to a sensible approach that yielded a portfolio comprising niche disruptors with long-term growth potential, situations where Fidelity had an informational edge, and MSCI Emerging Markets Index constituents with macro tailwinds. Quantitative tools help the fund avoid unintended bets. Since the upgrade, this share class delivered an annualized 15.7% return through May 2026, edging out the average category peer by about half a percentage point. The manager of this Silver-rated fund defines an emerging-market stock as any business that derives material economic interests from an emerging-market country, which has opened the door for some big winners not widely held by peers.

GQG Partners Emerging Markets Equity GQGPX

This Silver-rated fund’s People Pillar rating was upgraded to High in May 2023 to match its High Process rating, but recent performance has been uncommonly weak compared with its strong long-term record. The investor share class’ 14.1% annualized return since the upgrade through May 2026 lagged the MSCI Emerging Market Index’s 25.2% gain. Manager Rajiv Jain’s wariness of investor enthusiasm for AI growth beneficiaries was a detractor. Jain and his team use a creative “quality growth” approach. They want reliably growing companies but only if they’re on solid financial footing and have demonstrated the ability to weather slow economies. Above all, the team wants to avoid stocks that it considers vulnerable to steep price declines.

JOHCM Emerging Markets Opportunities JOEAX

Unlike many peers, this Bronze-rated fund’s investment approach is driven by top-down analysis of the 26 countries making up the MSCI Emerging Markets Index. The managers analyze several factors, including the growth, liquidity, currency, political risks, and valuation of each market. At the stock level, they look for growth at a reasonable price. Impressive macro insights and consistent strategy implementation led to a Process rating upgrade to High in February 2023. The investor shares’ 20.5% annualized gain through May 2026 trailed the average category peer’s 21.5% return.

This article first appeared in the June 2026 issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor by visiting this website.