A recent analysis from Goldman Sachs indicates that stocks and currencies in emerging markets are expected to climb through the end of 2025. Notably, these markets have already seen significant growth in the first nine months of this year, showing continued momentum.
Strengthen your investment strategy:
- Consider exploring options stated in the latest analysis related to emerging markets.
The Goldman report highlights several factors contributing to this upward trend: a weakening U.S. dollar, increasing investor interest in diversification, and robust corporate earnings. With this optimistic outlook, Goldman Sachs Research has revised its predictions. They anticipate the MSCI Emerging Markets Index will hit 1,480 in the next year, which would represent a price growth of about 7.80%.
For context, the MSCI EM Index serves as a benchmark measuring large and mid-sized companies across 24 emerging market nations.
Furthermore, the forecast suggests that corporate profits in these markets will rise by 9% in 2025 and 14% in 2026. This optimism is largely fueled by advancements in technology and an increasing demand for AI, especially from firms in China, Taiwan, and South Korea.
Which emerging market ETF is best?
This year, a range of emerging market ETFs have delivered impressive returns. We’ve pinpointed the top performers heading into 2025 using an ETF comparison tool.
GREK (Global X MSCI Greece ETF), which focuses on the Greek market, has led the pack with a remarkable 64.7% growth this year.
Following closely is KEMQ (KraneShares Emerging Markets Consumer Technology Index ETF), which targets tech sectors in emerging markets, with a substantial 58% increase year-to-date.
Next in line is EZA (iShares MSCI South Africa ETF), providing exposure to South African stocks, which has gained 56% since the start of the year.
Finally, FRDM (Freedom 100 Emerging Markets ETF) focuses on companies from nations with better personal and economic freedom indicators, achieving a significant 42.1% growth so far this year.
If you’re interested in diving deeper, consider checking out all the ETFs available in the ETF Center.
