Investing in Emerging Markets: A Guide to Building a Global Investment Portfolio
December 2, 2025
Article
When it comes to investing, one of the key strategies for building a diversified portfolio is to include exposure to emerging markets. These markets, which include countries that are in the process of rapid industrialization and growth, can offer investors the potential for high returns.
One way to gain exposure to emerging markets is through exchange-traded funds (ETFs) such as FLKR and EWY. Before investing in an ETF, it's important to do your research and understand the holdings of the fund. Different emerging markets ETFs may have different compositions, so it's crucial to choose one that aligns with your investment goals and risk tolerance.
In addition to ETFs, investors can also consider allocating a portion of their portfolio to alternative assets and real assets. By diversifying across different asset classes, investors may be able to outperform passive multi-asset benchmarks and enhance their overall investment performance.
But how exactly should investors go about investing in emerging markets? According to Alex Watts, a senior investment analyst at Interactive Investor, the key is to stay focused on the big picture. Emerging markets have the potential for rapid economic growth, but they also come with higher levels of risk compared to more developed markets. By carefully considering your investment goals and risk tolerance, you can make informed decisions about how to allocate your assets.
Foreign investments are increasingly outperforming their U.S. counterparts, making it an opportune time to consider adding international market assets to your portfolio. There are three key reasons for this trend: favorable policy and macroeconomic conditions, the potential for higher returns, and the benefits of diversification.
Looking ahead to the investment outlook for 2026, experts predict that risk assets, especially U.S. stocks, will continue to drive investment performance. With favorable economic conditions and policy support, U.S. stocks are expected to deliver strong returns for investors.
Short-term performance in international stocks is never guaranteed, but adding them to a portfolio of U.S. stocks can help provide valuable diversification benefits. By spreading your investments across different markets and asset classes, you can reduce risk and potentially enhance your overall returns.
As we head into 2026, emerging markets are coming out from behind the scenes and attracting more attention from investors. These markets represent an opportunity for countries to grow and develop, and investing in them can offer the potential for high returns.
To invest confidently in emerging markets, it's important to explore strategies for managing risk premia, hedging foreign exchange exposure, and building a resilient portfolio. By understanding the unique characteristics of emerging markets and taking a strategic approach to investing, you can position yourself for success in these dynamic economies.
In conclusion, adding exposure to emerging markets to your investment portfolio can provide diversification benefits, potential for high returns, and opportunities for growth. By carefully researching your investment options, staying focused on your long-term goals, and seeking guidance from investment professionals, you can build a strong global investment portfolio that is well-positioned for success.
One way to gain exposure to emerging markets is through exchange-traded funds (ETFs) such as FLKR and EWY. Before investing in an ETF, it's important to do your research and understand the holdings of the fund. Different emerging markets ETFs may have different compositions, so it's crucial to choose one that aligns with your investment goals and risk tolerance.
In addition to ETFs, investors can also consider allocating a portion of their portfolio to alternative assets and real assets. By diversifying across different asset classes, investors may be able to outperform passive multi-asset benchmarks and enhance their overall investment performance.
But how exactly should investors go about investing in emerging markets? According to Alex Watts, a senior investment analyst at Interactive Investor, the key is to stay focused on the big picture. Emerging markets have the potential for rapid economic growth, but they also come with higher levels of risk compared to more developed markets. By carefully considering your investment goals and risk tolerance, you can make informed decisions about how to allocate your assets.
Foreign investments are increasingly outperforming their U.S. counterparts, making it an opportune time to consider adding international market assets to your portfolio. There are three key reasons for this trend: favorable policy and macroeconomic conditions, the potential for higher returns, and the benefits of diversification.
Looking ahead to the investment outlook for 2026, experts predict that risk assets, especially U.S. stocks, will continue to drive investment performance. With favorable economic conditions and policy support, U.S. stocks are expected to deliver strong returns for investors.
Short-term performance in international stocks is never guaranteed, but adding them to a portfolio of U.S. stocks can help provide valuable diversification benefits. By spreading your investments across different markets and asset classes, you can reduce risk and potentially enhance your overall returns.
As we head into 2026, emerging markets are coming out from behind the scenes and attracting more attention from investors. These markets represent an opportunity for countries to grow and develop, and investing in them can offer the potential for high returns.
To invest confidently in emerging markets, it's important to explore strategies for managing risk premia, hedging foreign exchange exposure, and building a resilient portfolio. By understanding the unique characteristics of emerging markets and taking a strategic approach to investing, you can position yourself for success in these dynamic economies.
In conclusion, adding exposure to emerging markets to your investment portfolio can provide diversification benefits, potential for high returns, and opportunities for growth. By carefully researching your investment options, staying focused on your long-term goals, and seeking guidance from investment professionals, you can build a strong global investment portfolio that is well-positioned for success.