MSCI Emerging Markets Index

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Dictionary Says

Definition of 'MSCI Emerging Markets Index'

An index created by Morgan Stanley Capital International (MSCI) that is designed to measure equity market performance in global emerging markets.

The Emerging Markets Index is a float-adjusted market capitalization index that consists of indices in 26 emerging economies: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, Turkey and Venezuela.
Investopedia Says

Investopedia explains 'MSCI Emerging Markets Index'

Emerging markets are considered relatively risky because they carry additional political, economic and currency risks. They certainly aren't for those who value safety and security above all else. An investor in emerging markets should be willing to accept volatile returns - there is a chance for large profit at the risk of large losses.

An upside to emerging markets is that their performance is generally less correlated with developed markets. As such, they can play a role in diversifying a portfolio (and thus reducing overall risk).

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