The emerging markets (EM) universe has experienced significant changes in the last decade with the further addition of investible countries (i.e. China A shares in 2018).
This world in transformation remains highly heterogeneous as differences between EMs exceed similarities. In EM equities field this is also, why investors can benefit from lower correlation across countries compared to the developed countries group. Nevertheless, when a risk-off mood prevails, Emerging Markets tend to move in the same direction as investors pull out money from these assets, with the most vulnerable countries facing severe challenges. This was for instance the case during the EM turmoil in 2018 when the six most solid equity markets experienced a significantly better than the six vulnerable countries: 16% extra performance on equities in 2018.
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