If you’re exploring ways to diversify your portfolio beyond developed markets, you’ve likely come across the term “emerging markets.” These regions are known for their growing economies, evolving industries, and expanding financial systems. In this guide, you’ll get a clear look at emerging markets, why you should consider investing in them, how to invest, and the potential risks and opportunities that come with the territory.
Let’s dive in.
An emerging market refers to a country or region that is in the process of rapid economic growth and industrialization, but hasn’t yet reached the level of a fully developed economy. These markets sit somewhere between developing countries, which may have less infrastructure and slower growth, and developed markets, like the U.S. or Western Europe, with mature financial systems and higher income levels.
Emerging markets typically feature growing industrial sectors, expanding middle classes, increasing urbanization, developing financial markets (stock exchanges, banking systems), and ongoing regulatory improvements.
The term “emerging market” is not static. As countries evolve, some may graduate to “developed” status, while others may be reclassified based on economic or political changes.
The MSCI Emerging Markets Index, a common benchmark, includes 24 countries across various regions and industries. The list of emerging markets changes over time, but as of 2025, some of the most widely recognized include:
| Brazil | Czech Republic | Mexico |
|---|---|---|
| China | Greece | Philippines |
| Colombia | Hungary | Poland |
| India | Indonesia | Qatar |
| Korea (South) | Kuwait | Saudi Arabia |
| Malaysia | Thailand | South Africa |
| Taiwan | Turkey | United Arab Emirates (UAE) |
| Chile | Egypt | Peru |
Source (Data as of June 2025)
There is no single, universally accepted list of emerging markets. Several organizations maintain their own lists and criteria, including:
These organizations consider factors such as income levels, economic growth, market accessibility, and regulatory environment.
Emerging markets have increasingly become a part of global investment portfolios. Here’s why they may be relevant when you’re considering diversification:
Since emerging markets often move differently from developed markets, adding exposure to these regions may help spread risk in a portfolio. Their economies may respond to different drivers such as commodity prices, demographic trends, or domestic policies.
Because emerging markets can grow faster than developed economies, they might offer potential for higher returns over the long term. For example, the rise of technology companies in India or manufacturing hubs in Southeast Asia has attracted international investors.
Emerging markets often lead in sectors like renewable energy, critical minerals, digital finance (FinTech), and sustainable agriculture. For instance, Latin America is a major supplier of lithium for electric vehicles, while Africa is making strides in mobile money and digital inclusion
Here’s a snapshot of well-known companies from emerging markets, including their market capitalization, sector, and ticker symbols.
| Names | Ticker | Market Cap | Sector |
|---|---|---|---|
| Taiwan Semiconductor | TSM | $895.71B | Info Tech |
| Tencent Holdings Limited | TCEHY | $604.66B | Comm Svcs |
| Alibaba Group Holding Ltd | BABA | $288.60B | Cons Discr |
| HDFC Bank | HDB | $184.45B | Financials |
| Xiaomi Corp | XIACY | $150.5B | Info Tech |
| Reliance Industries | RELI | $3.43M | Energy |
| ICICI Bank | IBN | $119.43B | Financials |
| Meituan | MPNGF | $103.87B | Cons Discr |
| China Construction Bank Corp | CICHY | $213.37B | Financials |
Source (Data as of June 2025)
To buy emerging market stocks, you can follow the simple steps below:
You can sign up for an account on our website or download the Public app from the App Store (iOS) or Google Play Store (Android).
Once your account is set up and verified, you’ll need to deposit funds. There are multiple ways to fund your Public account—from linking a bank account to making a deposit with a debit card or wire transfer.
Use the search bar to find your preferred stocks. Click on the stock to view its details. This includes the current price, historical performance, and relevant news or analysis.
Once you’ve decided to purchase a stock, click on the “Buy” button. You’ll be prompted to enter the amount you want to invest or the number of shares you wish to buy. Complete the purchase by selecting either a Limit order or a Market order
Review your purchase details and total cost, then confirm your order. You’ll receive a confirmation, and your shares will appear in your portfolio once the trade is executed.
After purchasing, you can monitor your investment on Public.com. You can also track your portfolio’s performance and stay updated on market news.
Emerging markets may offer a way to diversify your portfolio by providing exposure to economies that are still developing but growing rapidly. These markets often behave differently from those in developed countries, which may add both variety and complexity to your investment mix.
If you’re considering investing in emerging markets, you’ll find several tools available, ranging from ETFs and mutual funds to individual stocks and bond funds. Each option may comes with its own level of risk, liquidity, and accessibility.
With Public.com, you can explore a variety of these investment vehicles in one place. Whether you’re looking at ETFs, stocks, bonds, or mutual fund options, we at Public offer features like advanced tools, research, and insights that may help you make informed decisions.
Sign up on the Public app today!
