Emerging markets are becoming an increasingly important part of global equity markets, with countries such as China, India, South Korea and Taiwan playing major roles in areas including semiconductors, artificial intelligence hardware, automotive manufacturing and renewable energy.
Emerging markets generally refer to countries moving towards more advanced and industrialised economies while developing deeper equity markets and stronger institutions. The classification is primarily used by index providers rather than being a formal economic definition.
The MSCI Emerging Markets Index is one of the most widely used benchmarks for the asset class. As of the end of March 2026, the index covered 24 countries across Asia, Latin America, Europe, the Middle East and Africa. Its constituents include major economies such as China, India and Brazil alongside smaller emerging markets.
The markets within the emerging-market category vary significantly. Differences in economic development, political systems, regulation, reliance on natural resources and financial market structures can result in substantial differences between individual countries and companies.
This variation is reflected in equity market performance and company fundamentals. Emerging markets contain businesses operating across technology, financial services, manufacturing, commodities, consumer industries and energy, providing exposure to a broad range of economic drivers.
Several emerging economies have also become important parts of global supply chains. China, South Korea, Taiwan and India have developed significant positions in areas including semiconductor manufacturing, artificial intelligence hardware, automotive production and renewable energy technology.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.
