Equity markets: emerging markets or industrialized countries?

Article by Simon Landt

Financial blogs often tout a portfolio consisting of the MSCI World and the MSCI Emerging Markets Index as the gold standard. The highlight: with such an investment strategy, investors benefit from an extremely broadly diversified portfolio.

However, the approach currently has a catch: while the MSCI World Index has risen sharply in value since the coronavirus pandemic, the MSCI Emerging Markets Index has fallen short of expectations. So should emerging market equities disappear from the portfolio and is the MSCI World Index perhaps enough?