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Fund Spy

Emerging Markets Are on the Rebound

But beware of style differences in this broad Morningstar Category.

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Diversified emerging-markets strategies had a rough decade. From June 2010 through June 2020, the diversified emerging-markets Morningstar Category's average cumulative return of 35% was well behind all the broad, diversified foreign-focused categories and widely trailed the U.S.-focused categories. Recently, though, signs of life have sprouted. The category's 41.4% return from June 2020 through June 2021 topped the average return of the foreign large-growth, foreign large-value, and foreign large-blend categories. Investors have taken notice, and the diversified emerging-markets category attracted over $50 billion in net inflows over the trailing 12 months through June 2021.

Jack Shannon does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.