Emerging Market Funds
What Are Emerging Market Funds ?
Emerging market funds offer investors exposure to, in our view, some of the most compelling opportunities outside of the United States. These investments are available via mutual funds or ETFs, and in various traditional asset classes including equity and fixed income. Investors also have the option of focusing on a single country or a more diversified portfolio across emerging countries.
The term “emerging markets” can be interpreted several ways, but it generally refers to the 20+ countries that are part of the MSCI Emerging Market index1, which includes China, India, South Korea, Brazil, Russia, Taiwan and South Africa.
1. Source: MSCI
Diversification
Franklin Templeton emerging market funds are invested in a wide variety of industries, countries, and regions, which has the potential to reduce portfolio volatility. Many of these regions don’t correlate with each other or with developed markets, potentially offering further diversification protection.
Valuation
Unlike companies in developed markets, where equity valuations are well established and generally transparent, the value of companies in emerging markets is often opaque and subjective. As a result, companies in emerging markets may be undervalued compared to their developed market counterparts.
This creates opportunities for experienced active fund managers employing proprietary fundamental analysis to identify undervalued and mispriced stocks and bonds ignored or overlooked by other investors. Our investment professionals seek companies with sustainable earnings power at a discount to their intrinsic worth and compelling opportunities before they reach broader market recognition.
Opportunity
Investing in emerging markets has the potential to improve your portfolio's long-term returns compared to investing only in developed markets.
Types of Emerging Market Funds
There are a number of different types of emerging market funds, each with their own characteristics and level of risk.
Equity
Equity funds typically invest primarily in stocks in order to seek long-term capital appreciation and/or income. These funds may focus on companies in individual emerging market countries or regions or may have a specific investment style, such as investing in value or growth stocks.
Bond
Bonds are debt instruments issued by various public and private entities in emerging markets, including sovereign governments, international agencies, state and local authorities, and private corporations.
Blend
Blend funds, also called “hybrid funds,” typically invest in a mix of value and growth stocks as a means of providing diversification between the two investment styles.
Our Emerging Market Funds
We offer a wide range of emerging market investments, including:
7
Global Emerging Market Funds
17
17 Total Products, (6 Funds & 11 ETFs)
10
Regional Or Single Country ETFs
Featured products
Templeton Emerging Markets Fund
The fund seeks long-term capital appreciation by investing, under normal market conditions, at least 80% of its net assets in emerging country equity securities.
- Asset Class
- Equity
Franklin Emerging Market Core Dividend Tilt Index ETF
The fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of its corresponding underlying benchmark, the LibertyQ Emerging Markets Index.
- Asset Class
- Equity
Why Choose Franklin Templeton?
Franklin Templeton is a pioneer in emerging market investing with more than 30 years of experience navigating through multiple market cycles. Our experienced team provides extensive local research, integrated with cross-border global insights.
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Alternative funds invest in a variety of strategies and asset classes, and offer the potential to reduce volatility and improve portfolio returns.
An equity fund typically invests primarily in stocks. Learn about the different types, explore our range of products and find out how you can invest with us.
Fixed income funds invest primarily in bonds or other debt securities, and offer investors the potential for income generation and capital preservation.
We offer a number of different types of income-producing funds designed to meet a wide range of investor goals. Learn more about our approach today.
A multi-asset fund offers exposure to a broad number of asset classes, often offering a level of diversification typically associated with institutional investing.
Municipal bonds, or munis, are debt securities issued by states, counties, cities & local districts to finance capital and infrastructure projects. Learn more.
Are you as geographically diversified as you think you are? Explore our range of single country and regional ETFs, and see if they're a fit for your portfolio.
Our portfolio analysis can help you choose the right investments for your clients.
Explore our different types of funds.
Important Information
This website does not provide investment advice or investment recommendations. It is intended for educational and informational purposes only.
What Are the Risks?
All investments involve risks, including possible loss of principal.
Investments in emerging market countries involve special risks including currency fluctuations, economic and political uncertainties, in addition to those associated with these markets' smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the fund adjust to a rise in interest rates, the fund's share price may decline. The risks associated with higher-yielding, lower-rated securities include higher risks of default and loss of principal. Sovereign debt securities are subject to various risks in addition to those relating to debt securities and foreign securities generally, including, but not limited to, the risk that a government entity may be unwilling or unable to pay interest and repay principal on its sovereign debt, or otherwise meet its obligations when due. By clicking on the fund name, you will be taken to a more detailed fund information page which includes main investments and risks.
For more information on any of our funds, contact your financial professional or download a free prospectus.
Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. Download a summary prospectus and/or prospectus, which contains this and other information. Please carefully read a prospectus before you invest or send money.