By Matteo Anelli, News editor, Trustnet, 06 October 2025
Experts discuss why (and how much) you should invest in fast-growing economies.
Emerging markets come in and out of favour and this year they are back with a boom: 2025 has been a ‘stellar year’ for emerging markets so far, with China and Latin America topping performance tables in September.
Part of this revival has been linked to US president Donald Trump’s trade and fiscal policies, which some managers argue have inadvertently made emerging markets great again.
Yet despite the strong returns, many investors remain underweight or entirely absent from the sector. Emerging markets are still perceived as too risky or too remote to warrant a meaningful allocation.
To test that assumption, Trustnet asked three experts – QuotedData senior analyst Matthew Read, Killik associate portfolio director Andrius Makin and Fidelity International investment director Tom Stevenson – when it makes sense to add emerging markets to a portfolio and how much exposure is appropriate..
Why should investors consider investing in emerging markets?
The main reason investors turn to emerging markets is the potential for faster economic growth than in developed economies.
Read explained: “Emerging markets tend to benefit from favourable demographics, growing middle classes and growth in areas such as technology and financial services – they are benefiting from increased digitalisation as mobile phones’ penetration increases and, without the burden of legacy systems seen in more developed markets, it is easier to play catch up by leapfrogging older technologies.”
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