Emerging markets are economies in developing nations that are experiencing rapid industrialization, growing financial markets, and increasing integration into the global economy. They include countries such as China, India, Brazil, and South Africa, and their assets typically offer higher growth potential alongside greater volatility and political risk.
Example
“During the 2023 risk-on rally, the MSCI Emerging Markets Index outperformed developed market indices as investors poured capital into high-growth economies like India and Indonesia.”