Emerging markets are economies that are undergoing a comprehensive transformation process and often enjoy strong economic growth[6] – hence the name “emerging markets.” Of course, these facts alone don’t amount to positive investment criteria, but many of these emerging markets have performed remarkably well in recent years. Investors who have narrowly associated China or Brazil with commodities or cheap counterfeit products until now should take a closer look. After all, the key reasons for investing in emerging markets have evolved significantly in recent times.
Exposure to emerging markets generally entails greater risks than exposure to well-developed markets, including potentially significant legal, economic and political risks. The prices of emerging market exchange rates, securities and other assets are often highly volatile. Movements in such prices are influenced by, among other things, interest rates, changing market supply and demand, external market forces (particularly in relation to major trading partners), trade, fiscal, monetary programmes, policies of governments, and international political and economic events and policies.
When investing for the long term, however, some risks can be mitigated, such as possible restrictions on the tradability of securities, or higher volatility during certain market phases.
Emerging markets expand the regional investment universe and enable exposure to countries with strong economic momentum and different currencies. In this context, Asia could be viewed as particularly interesting for an investment region, allowing for a compelling combination of an emerging market investment with future-oriented themes such as sustainability, big data and future mobility.
Emerging markets are located across the world, but a majority of important emerging markets – and those with very interesting growth potential – are in Asia. These include China, India and South Korea. Consequently, Asia offers investors one of the widest selections of interesting regional and country-specific funds.
Name | TER p.a. | ISIN | |
China, India, South Korea | |||
Xtrackers FTSE China 50 UCITS ETF 1C | 0.60% | LU0292109856 | |
Xtrackers Harvest CSI300 UCITS ETF 1D | 0.65% | LU0875160326 | |
Xtrackers Harvest FTSE China A-H 50 UCITS ETF 1D | 0.65% | LU1310477036 | |
Xtrackers MSCI China UCITS ETF 1C | 0.65% | LU0514695690 | |
Xtrackers MSCI India Swap UCITS ETF 1C | 0.75% | LU0514695187 | |
Xtrackers MSCI Korea UCITS ETF 1C | 0.65% | LU0292100046 | |
Xtrackers Nifty 50 Swap UCITS ETF 1C | 0.85% | LU0292109690 | |
All Emerging Markets Equity ETFs |
Fixed income investments in emerging markets usually aim for higher yields compared with developed market bonds. Most emerging markets worldwide fulfil this criterion. A global approach is therefore more advisable than a regional focus with fixed income ETFs, unlike with equity ETFs.
Name | TER p.a. | ISIN | |
Emerging Markets | |||
Xtrackers II Harvest China Government Bond UCITS ETF 1D | 0.35% | LU1094612022 | |
Xtrackers II USD Emerging Markets Bond UCITS ETF 1C EUR Hedged | 0.40% | LU0321462953 | |
Xtrackers II USD Emerging Markets Bond UCITS ETF 2D Core | 0.25% | LU0677077884 | |
All Emerging Markets Fixed Income ETFs |
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