MSCI Emerging Markets Index

MSCI Emerging Markets Index

What Does MSCI Emerging Markets Index Mean?

An index created by Morgan Stanley Capital International (MSCI) that is designed to measure equity market performance in global emerging markets. The Emerging Markets Index is a float-adjusted market capitalization index. Some of the emerging economies in the index are Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, Turkey, and Venezuela.

Investopedia explains MSCI Emerging Markets Index

Emerging markets are considered relatively risky because they carry additional political, economic, and currency risks. They certainly are not for those who value safety and security above all else. An investor in emerging markets should be willing to accept greater risks for potentially greater returns. An upside to emerging markets is that their performance generally is correlated less with that of developed markets. Thus, they can play a role in diversifying a portfolio (and thus reducing overall risk).

Related Terms:
• American Depositary Receipt—ADR
• Correlation
• Exchange-Traded Fund—ETF
• Global Depositary Receipt—GDR
• Index