Small-Cap Stock Surge Adds $318 Billion to Emerging Markets
- MSCI EM small-cap index has advanced almost 15% this year
- Korea, Taiwan, India lead outperformance over large-cap shares
An electronics market in New Delhi, India.
Photographer: Anindito Mukherjee/BloombergThis article is for subscribers only.
With the final quarter of 2023 approaching, one winning strategy in emerging markets is becoming clearer: buying shares in smaller companies.
The trade has produced an extra gain of 12 percentage points over the MSCI large-cap index so far this year, on course for the second-best relative returns in the past 14 years. Part of the reason is that large-cap companies are more likely to be exposed to China’s economic troubles.