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.
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
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:
17
17 Total Products,
(6 Funds & 11 ETFs)
7
Global Emerging
Market Funds
10
Regional Or
Single Country ETFs
Featured products:
1/2
1/2
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.
How to Invest in Mutual Funds
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