Line chart compares the MSCI Emerging Markets (EM) excluding Asia Index, the MSCI Emerging Markets Index, and Bloomberg Commodities.
Y-axis: Index level (indexed to 100 on 11/1/2010); X-axis: 2010 to 2021.
From 2010 to about mid-2014 the three indexes tracked each other fairly closely. By July 2014, however, the emerging markets index begins to outperform the EM ex-Asia index and commodities, rising to a value of nearly 110 by August, when EM ex-Asia was at about 93.7 and commodities were just short of 91. Since that time the emerging markets index has consistently outperformed the other two indexes, with the EM ex-Asia index generally stronger than the commodities index.
Emerging markets peaked during this period in January 2018 at over 127 and EM ex-Asia just over 85, when commodities were near 63. All three indexes dipped sharply in Q1 2020: emerging markets (just over 112 at year-end 2019 to near 86 in March), EM ex-Asia (75 at year-end 2019 to about 44 in March), and commodities (from just over 58 at year-end 2019 to about 44 in March).
As of Q3 2021 emerging markets stood at over 126; ex-Asia to over 70, and commodities to over 72.
Sources: Bloomberg and Wells Fargo Investment Institute. Monthly data from January 1, 2010 to September 30, 2021. The MSCI Emerging Markets Index and Emerging Markets excluding Asia Index are equity Indexes that capture large- and mid-cap representation across 24 emerging market countries, and 17 emerging markets, respectively, around the world. Index returns do not represent investment performance or the results of actual trading. Index returns represent general market results, assume the reinvestment of dividends and other distributions, and do not reflect deduction for fees, expenses or taxes applicable to an actual investment. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results. Equity securities are subject to market risk which means their value may fluctuate in response to general economic and market conditions and the perception of individual issuers. Investments in equity securities are generally more volatile than other types of securities. Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility. These risks are heightened in emerging markets.
MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.
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