Emerging Markets are countries with developing economies that are experiencing rapid growth and industrialization. Examples include India, Brazil, Mexico, Indonesia, and South Africa.
These markets often offer higher growth potential than developed countries, but they can also be more volatile and carry greater political, economic, and currency risks. As a result, investment returns may fluctuate more significantly over time.
Many global ETFs include emerging markets to increase diversification and provide exposure to regions with strong long-term growth prospects.