Key Takeaways
- • Emerging markets equities have delivered strong, broad-based gains year-to-date in 2026, continuing momentum from 2025, with performance distributed across multiple countries rather than concentrated in a narrow set of winners.
- • International equities, particularly emerging markets, have posted strong gains over the past year driven by improving fundamentals and the global artificial intelligence build-out, with supportive macroeconomic and structural trends expected to sustain further growth.
- • Key emerging market opportunities cited include South Korea, Taiwan, Brazil, and India, each offering distinct economic strategies and sectoral dynamics analogous to different competitive approaches in global sports.
- • Favorable emerging markets demographics remain a structural tailwind supporting long-term growth potential, positioning EM equities as a meaningful component of diversified global equity portfolios.
- • BlackRock's iShares Core MSCI Emerging Markets ETF (IEMG) provides efficient, low-cost broad exposure across large-, mid-, and small-cap emerging markets equities for investors seeking EM allocation.
Summary
BlackRock's analysis positions emerging markets equities as an attractive strategic allocation for diversified investors, drawing parallels between the competitive dynamics of global soccer and the evolution of international equity markets. The timing of the commentary coincides with the 2026 global soccer tournament across the U.S., Mexico, and Canada, providing a thematic framework for discussing how different regional economies compete and evolve similarly to international sports competitors.
Emerging markets have built substantial momentum, posting strong year-to-date gains in 2026 that follow a successful 2025 performance. A distinguishing feature of recent EM equity performance is its broad-based nature—gains are distributed across multiple countries and sectors rather than concentrated in a narrow set of outperformers. This diversification across geographies suggests underlying strength in fundamental drivers rather than a momentum trade concentrated in specific markets or themes.
The primary drivers of emerging markets outperformance include improving fundamentals and accelerating participation in the global artificial intelligence infrastructure build-out. These factors have propelled EM equities higher over the past year, and BlackRock identifies supportive macroeconomic conditions and favorable demographic trends as structural tailwinds likely to sustain growth momentum. Favorable emerging markets demographics—younger, growing working-age populations in many EM economies—provide a long-term structural advantage that differentiates EM from developed markets facing aging demographics.
BlackRock highlights four specific emerging markets warranting investor consideration: South Korea, Taiwan, Brazil, and India. Each market is characterized by distinct economic strategies, sectoral compositions, and regional dynamics. For investors seeking efficient exposure to emerging markets, BlackRock recommends the iShares Core MSCI Emerging Markets ETF (IEMG), which offers low-cost, broad-based access across large-cap, mid-cap, and small-cap EM securities. This recommendation reflects a strategic view that emerging markets merit meaningful portfolio weighting within global equity allocations.
The underlying thesis positions emerging markets not as a speculative tactical bet but as a structural allocation decision grounded in improving fundamentals, demographic advantages, and participation in secular technology trends. The breadth of recent performance gains and the durability of supporting macro and structural trends suggest that emerging markets may warrant increased consideration within institutional and alternative investment portfolios pursuing global equity diversification.
Emerging markets have built substantial momentum, posting strong year-to-date gains in 2026 that follow a successful 2025 performance. A distinguishing feature of recent EM equity performance is its broad-based nature—gains are distributed across multiple countries and sectors rather than concentrated in a narrow set of outperformers. This diversification across geographies suggests underlying strength in fundamental drivers rather than a momentum trade concentrated in specific markets or themes.
The primary drivers of emerging markets outperformance include improving fundamentals and accelerating participation in the global artificial intelligence infrastructure build-out. These factors have propelled EM equities higher over the past year, and BlackRock identifies supportive macroeconomic conditions and favorable demographic trends as structural tailwinds likely to sustain growth momentum. Favorable emerging markets demographics—younger, growing working-age populations in many EM economies—provide a long-term structural advantage that differentiates EM from developed markets facing aging demographics.
BlackRock highlights four specific emerging markets warranting investor consideration: South Korea, Taiwan, Brazil, and India. Each market is characterized by distinct economic strategies, sectoral compositions, and regional dynamics. For investors seeking efficient exposure to emerging markets, BlackRock recommends the iShares Core MSCI Emerging Markets ETF (IEMG), which offers low-cost, broad-based access across large-cap, mid-cap, and small-cap EM securities. This recommendation reflects a strategic view that emerging markets merit meaningful portfolio weighting within global equity allocations.
The underlying thesis positions emerging markets not as a speculative tactical bet but as a structural allocation decision grounded in improving fundamentals, demographic advantages, and participation in secular technology trends. The breadth of recent performance gains and the durability of supporting macro and structural trends suggest that emerging markets may warrant increased consideration within institutional and alternative investment portfolios pursuing global equity diversification.
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