Emerging markets have been out of favor for years—but that may finally be changing. JPMorgan just upgraded its outlook on emerging market equities from neutral to overweight, citing easing U.S.-China trade tensions, a softer U.S. dollar, and compelling relative valuations. With global headlines shifting and valuations still well below historical averages, investors might finally have a window to re-enter the space.
Year-to-date, the MSCI Emerging Markets Index is up 9%, already outperforming the S&P 500’s 1.3% gain. That momentum is also starting to show up in specific regions, particularly India and Brazil, which have seen strong equity inflows and outperformance so far this year.
Below are three ways to get diversified or targeted exposure to the space—each with a slightly different angle, depending on your risk appetite and focus.
iShares MSCI Emerging Markets ETF (EEM) – Broad Exposure With Renewed Momentum
If you’re looking for one-click exposure to a basket of emerging market equities, EEM is still one of the best tools out there. It provides access to large- and mid-cap companies across more than 20 developing countries.
Trading around $46, the ETF has posted a 10.6% gain so far in 2025—on pace for its best year since 2020. China’s market stabilization, combined with easing trade tensions, has been a key catalyst for the recent move. For investors looking to participate in the rebound without trying to pick winners, EEM remains a solid core holding.
iShares MSCI India ETF (INDA) – Targeted Exposure to a Fast-Growing Giant
India’s economic engine keeps gaining traction, and that growth is starting to show up in market returns. INDA gives investors access to large and mid-cap Indian equities, with financials, IT, and consumer stocks making up the bulk of the portfolio.
The ETF is currently trading near $55 and has posted a modest but steady 4% year-to-date gain. With a favorable demographic profile, growing consumer market, and expanding tech footprint, India is well-positioned to deliver long-term returns—and INDA offers a straightforward way to get in.
iShares MSCI Brazil ETF (EWZ) – Riding the Upside of Commodity and Policy Tailwinds
Brazil has quietly become one of the standout performers in emerging markets this year. EWZ, which tracks major Brazilian equities, is up 24% year-to-date—easily outpacing peers.
At $28 per share, the ETF is benefiting from both macro and micro tailwinds: stable inflation, strong commodity exports, and domestic policy stability. Financials and materials are heavily weighted here, making EWZ a compelling option for those looking to benefit from global demand for raw materials and infrastructure investment.
Emerging markets finally have a setup that looks favorable across both fundamentals and technicals. Whether you’re looking for broad exposure or more focused plays, now could be a smart time to revisit the sector.
