Emerging vs. Developed Market Total Returns Since 1987

Emerging markets have outperformed developed markets this year. As of  Sept 9, the MSCI Emerging Markets Index is up 14.5% while the MSCI World Index is up 2.7% according to an article by investment guru Mark Mobius. The MSCI World index is a proxy for developed markets.

The following chart shows the total return of Emerging vs. Developed Market since 1987:

Click to enlarge


Source: Emerging-Market Resilience, Mark Mobius, Franklin Templeton Investments, Sept 15, 2016

In addition to the resilience of emerging markets this year, Mr.Mark  is bullish on the long-term investment case for these markets. Factors like rising purchasing power, favorable demographics, etc. should benefit developing countries.

Related ETFs:

  • iShares MSCI Emerging Markets ETF (EEM)
  • Vanguard FTSE Emerging Markets ETF (VWO)

Disclosure: No Positions

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