Emerging markets (Schwellenländer)
Countries moving from developing to developed status, such as China, India, Taiwan or Brazil.
In short
As of 8 October 2026Emerging markets are countries on the way to developed-economy status, such as China, Taiwan, India or Brazil. The MSCI Emerging Markets index covers 24 of them. They are not part of the MSCI World, but make up around 10 percent of the MSCI ACWI. They offer growth potential but often fluctuate more and carry political and currency risks.
Emerging markets are economies that grow fast but are not yet classed as developed. The MSCI Emerging Markets index covers 24 countries; China, Taiwan, India and South Korea carry the most weight.
The MSCI World leaves them out entirely. In the MSCI ACWI they make up around 10 %. Adding emerging markets reduces concentration risk in US stocks, but brings bigger swings plus currency and political risks.
Example: some investors combine an MSCI World ETF with an emerging markets ETF in a 70/30 or 90/10 split. Others pick a single world ETF that holds both. More on spreading risk in the chapter on risk and diversification.
Related terms
As of 8 October 2026 · Educational content, not investment or tax advice.