As world economies continue to globalize operations and trade, poorer countries are beginning to represent a higher portion of global GDP. That sounds like good news for emerging market exchange traded funds (ETFs).
According to Catherine Rampell of Economix, developing countries are on track to account for 57% of world GDP by 2030. In 2000, that figure was at 40%. In 2010, it increased to 49%. The numbers are based on research done by the late Angus Maddison. [Emerging Market ETFs: Growing Power On Two Fronts.]
Just look at this chart to see how it’s all changed, and how much more it’s expected to change: