To be sure, there are some limitations to the analysis. For instance, it’s based on 2011 revenue data since that was what was most widely available. In addition, when companies didn’t disclose the geographic origin of their revenue, he estimated how much came from emerging markets versus developed markets using gross domestic product data.
That said the information can be helpful to investors who want to access emerging market growth through sources other than emerging market stocks themselves. In fact, large exposure to emerging markets is one reason why I currently hold overweight views of the energy and technology sectors, which are accessible through the iShares S&P Global Energy Sector Fund (IXC) and the iShares S&P Global Technology Fund (IXN) respectively.
Russ Koesterich, CFA, is the iShares Global Chief Investment Strategist.
The author is long IXC.