Emerging markets stocks are carrying last year's momentum into 2026, and the Schwab Fundamental Emerging Markets Equity ETF is benefiting.

The S&P 500 is down 1.6% so far in 2026. Meanwhile, emerging markets are up sharply, developed international markets are outperforming, and a decade-long valuation gap between US and non-US equities is finally closing.

By Summer Zhen HONG KONG, March 23 (Reuters) - Global hedge funds' selling of emerging Asia market stocks last week was the most since April 2025 amid heightened risk aversion, according to a Goldman Sachs client note seen by Reuters.

Emerging markets have surged recently, returning 14.83% year-to-date and nearly 50% over the past year—far outpacing developed markets.

Once a top pick among emerging-market investors, local-currency debt is quickly becoming a pain trade. After months being boosted by a weaker dollar, slowing inflation and interest-rate cuts, the bonds have delivered a loss of more than 4.

Iranian missiles and drones targeted Israel and Gulf Arab states as Tehran kept its chokehold on the Strait of Hormuz, even as U.S. President Donald Trump said talks were ongoing with the Islamic Repu

Columbia Emerging Markets Fund returned 3.47% in Q4 2025, trailing its benchmark. Read the full analysis for more details.

As the U.S.-Israeli war with Iran enters its fourth week, the economic consequences continue to rattle markets.