| Perceptions about emerging markets (EM) usually lag behind reality, sometimes by decades. Nowhere is this more evident than in the perception about EM equities, where the consensus opinion remains that EM equities - and the MSCI EM in particular - is primarily a commodities and cyclical play.
This view is outdated and wrong. Today, the structural growth drivers constitute more than 50% of the MSCI EM equity index, while the cyclical share is down to 20%. The commodity component has fallen to just 14%, which is less than half of its share a decade ago. Moreover, the tech share of the MSCI EM now constitutes 23%, which is greater than the tech share of the S&P 500...............................................Full Article: Source
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