MSCI Emerging Markets Index


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 21 emerging economies: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

BREAKING DOWN '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).

  1. Diversification

    A risk management technique that mixes a wide variety of investments ...
  2. Index

    A statistical measure of change in an economy or a securities ...
  3. Emerging Market Fund

    A mutual fund or exchange-traded fund that invests the majority ...
  4. Country Risk

    A collection of risks associated with investing in a foreign ...
  5. Political Risk

    The risk that an investment's returns could suffer as a result ...
  6. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
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