Archive · 22 Dec 2025
Emerging Markets Gain Favor in 2026
Emerging markets are becoming very popular with investors.
After many years of not doing well, these markets are now performing better than those in the US.
Investors are putting a lot of money into these markets, especially in stocks and bonds.
This is the most money that has gone into these markets since 2009.
Experts think this trend will continue into 2026, with even more money expected to flow in.
However, there are some risks, like the strength of the US dollar and challenges from China.
But overall, investors are optimistic and see a good opportunity to invest in these markets.
Emerging markets are gaining favor among investors, with significant inflows in 2025.
Emerging stocks are outperforming US peers for the first time since 2017.
The gap between emerging-market bond yields and US Treasuries has shrunk to the lowest in 11 years.
Carry trade strategies have reaped the best profits since 2009.
Investors are diversifying from the US and are drawn by developing nations' progress in cutting debt and taming inflation.
- Who
- Money managers, investors, and financial institutions
- What
- Emerging markets are gaining favor among investors
- When
- Starting 2026, with significant inflows in 2025
- Where
- Globally, with a focus on emerging markets
- Why
- Due to better performance, diversification from the US, and progress in cutting debt and taming inflation
- Investment Inflows
- Best since 2009 across all emerging-market securities
- Emerging Stocks Performance
- Outperforming US peers for the first time since 2017
- Bond Yields Gap
- Shrunk to the lowest in 11 years
- Carry Trade Profits
- Best since 2009
- US ETF Inflows
- Almost $31 billion in 2025
- Emerging Debt Funds Inflows
- Over $60 billion in 2025
- Emerging Markets Share in Global Benchmarks
- Approaching 13% in the Bloomberg World Large & Mid Cap Index
- Projected Inflows for 2026
- Up to $50 billion into emerging-debt funds