Emerging-Markets Mavericks Target Regional Funds for Payoffs

MSCI’s sub-index for Latin America is up 25%, while the Eastern Europe sub-index is up 45%. That compares with an advance of less than 5% on the S&P 500. — MSCI’s sub-index for Latin America is up 25%, while the Eastern Europe sub-index is up 45%. That compares with an advance of less than 5% on the S&P 500.
Photographer: Mauricio Palos/Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Selcuk Gokoluk and Srinivasan Sivabalan

June 29, 2025 at 8:30 AM EDT

Updated on

June 30, 2025 at 3:56 AM EDT

In a banner year for emerging markets, the best returns have gone to investors who targeted regional indexes and ignored the Asia-heavy global benchmarks.

While the most widely tracked gauge of developing-nation stocks, the MSCI Emerging Markets Index, is beating the S&P 500 for the first time since 2017, returns for sub-indexes in Latin America and Eastern Europe are as much as four times higher. That’s because the benchmark global indexes are dominated by companies in Asia, the region most impacted by President Donald Trump’s tariff threats that has also been the biggest laggard in an otherwise extraordinary year for the asset class.