EM: Not So Risky Business After All

Emerging markets are often viewed by investors as riskier than U.S equities, but data on risk-adjusted returns proves otherwise.

Volatility for in the MSCI Emerging Markets Index this year peaked at a lower level than the MSCI U.S. and has seen a steeper decline, according to Bloomberg, and thus EM investors would have seen a higher degree of certainty on returns.

Emerging economies are also on track to grow much quicker than developed nations, with the International Monetary Fund predicting that the GDP of developing nations will grow 1.6 percent compared to a contraction of 3.8 percent for advanced economies.

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View the full EEM chart at Wikinvest