152: Emerging Trends in Emerging Markets

Nov 10, 2023

This podcast explores the increasing importance of emerging markets and the potential benefits of interest rate cuts. It discusses factors driving forward emerging markets, such as supply chain rewiring and demographic population shifts. India's potential outperformance and rise as the world's third-largest economy are examined. The impact of near-shoring on emerging market economies is explored, with focus on Mexico, Poland, and Vietnam. The evolving approach to emerging markets, including the trend of investing in ETFs that exclude China, is also discussed.

Ask episode

Chapters

Transcript

Episode notes

Introduction

00:00 • 2min

Factors Driving Forward Emerging Markets

01:34 • 7min

Potential Outperformance of India in Emerging Markets

08:09 • 2min

The Impact of Near-Shoring on Emerging Market Economies

10:11 • 4min

The Evolving Approach to Emerging Markets

14:02 • 5min

In a world filled with financial uncertainties and rapidly changing economic landscapes, one thing remains clear. Emerging markets are becoming increasingly pivotal in shaping the global investment landscape. Jeff Spiegel, U.S. Head of Megatrend International and Sector ETFs at BlackRock joins host Oscar Pulido to delve into specific global trends that are paving the way for emerging markets, including the intriguing concepts of supply chain rewiring, and demographic population shifts.

Sources: BlackRock Investment Institute, “Capital Market Assumptions,” 08/2023; The Economist, “Global firms are eyeing Asian alternatives to Chinese manufacturing,” 02/20/2023;McKinsey & Company. Lithium Mining: How New Production Technologies Could Fuel the Global EV Revolution, 4/12/22;International Energy Agency. “The role of critical minerals in clean energy transitions”, May 2021; World Economic Forum, “This chart shows the growth of India's economy,” 09/26/2022; The Economic Times, “India likely to become third biggest economy behind US and China by FY28,” 10/16/2022; The Economic Times, “India's economy likely to grow 7% in FY23: First advance estimates,” 01/07/2023; Reuters, “India to review production incentive scheme this month-end,” 06/13/2023; Morningstar, MSCI. China constitutes 30% of the MSCI Emerging Markets Index as of 9/30/2023. BlackRock, as of 9/30/2023; Morningstar. The iShares MSCI Emerging Markets ex-China ETF has a YTD total return of 6% as of 09/30/2023. The iShares Core MSCI Emerging Markets ETF has a YTD total return of 3% as of 09/30/2023; Morningstar. The iShares MSCI India ETF has a YTD total return of 7% as of 09/30/2023. The iShares MSCI South Korea ETF has a YTD total return of 4% as of 09/30/2023; BlackRock, as of 9/30/2023.

This content is for informational purposes only and is not an offer or a solicitation. Reliance upon information in this material is at the sole discretion of the listener.

In the UK and Non-European Economic Area countries, this is authorized and regulated by the Financial Conduct Authority. In the European Economic Area, this is authorized and regulated by the Netherlands Authority for the Financial Markets.

For full disclosures go to Blackrock.com/corporate/compliance/bid-disclosures

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.