
Mexico, Pakistan, Saudi Arabia, China, and Brazil are notable emerging markets. Russia had been an emerging market country, but the war in Ukraine and sanctions have pushed the Russian economy further down on the totem pole.
While U.S. and European small-cap companies can offer significant growth with substantial risks, emerging market small-cap stocks carry greater risks but can provide even more upside potential as rewards are always a function of risks. The SPDR S&P Emerging Markets Small-Cap ETF product (EWX) owns shares in emerging market companies with upside potential and commensurate risk profiles.