
Emerging markets have become 2025's breakout stars, outpacing AI-fueled Wall Street and defying Donald Trump‘s tariff headwinds, as strong economic growth, attractive valuations and structural reforms continue to attract a wave of global investor capital.
The iShares MSCI Emerging Markets ETF (NYSE:EEM) has gained 29% year-to-date, outperforming the SPDR S&P 500 ETF Trust (NYSE:SPY) by 15 percentage points—the biggest lead since 2009.