ETF Trends publisher Tom Lydon spoke with Ed Kerschner, Columbia Threadneedle Chief Portfolio Strategist, at Inside ETFs conference that ran Jan. 22-25, 2017.
Kerschner talked about why the Trump Administration won’t have a major affect on Emerging Markets – that’s because only 16% of emerging market exports actually go to the U.S.
Emerging Markets Deserve a Closer Look
Investors seeking to grow their portfolios in 2017 may be too preoccupied with potential opportunities and challenges in the U.S., such as how the election might benefit companies in the infrastructure sector, or what the rising-rate environment portends for their bond holdings. Some might say they’re missing the forest for the trees—and that forest is emerging markets.
While many U.S.-based investors consider developing countries a valuable piece of their portfolio, it’s often a small percentage of their overall allocation. They may want to rethink that strategy. Emerging markets are now 40% of the global economy—a figure that has doubled over the past 25 years.