Latest news with #EEM
CNBC
19-05-2025
- Business
- CNBC
JPMorgan upgrades emerging markets. How to play the improved outlook
Emerging market stocks couldn't catch a break the past four years. Now their fortunes may be turning. JPMorgan upgraded emerging markets to overweight from neutral on Monday. Strategist Mislav Matejka cited several reasons for the change, including easing trade tensions and attractive valuations. "De-escalation on U.S.-China trade front reduces one significant headwind for EM equities," Matejka wrote. "Big picture, the [year-to-date] increase in tariffs is still extremely large in a long term context. … We remain concerned about the impact of tariffs on medium term growth in U.S. and elsewhere; however, last week's news is clearly positive, especially for China." China and the U.S. agreed last week to temporarily lower tariffs as part of an attempt to negotiate a broader trade agreement. The news sent the iShares MSCI Emerging Markets ETF (EEM) higher by 3% last week — its fifth weekly advance in six. The strategist also noted that emerging markets are trading at 12 times forward earnings "and at a bigger than typical discount to" developed markets. The EEM exchange-trade fund is up 10.6% so far in 2025, outperforming the S & P 500's meager 1.3% advance. That's also better than the European Stoxx 600's 7.6% gain. EEM's 2025 advance puts it on pace for its best year since 2020, when it rose 15.2%. This performance also marks a stark contrast from the previous four years, when the EEM lagged both the U.S. and Europe. Check out how the fund — along with the S & P 500 and Stoxx 600 — did between 2021 and 2024: Declines during that time for emerging markets were led in part by China, as the country's economy struggled to recover following strict Covid-related lockdowns. EEM also suffered after President Donald Trump last month announced steep tariffs on dozens of countries. The fund has since recovered, however. Matejka highlighted India and Brazil as potentially notable EM winners. The iShares MSCI India ETF (INDA) is up nearly 4% year to date. EWZ , its Brazilian counterpart, has soared 24%.
Forbes
22-03-2025
- Business
- Forbes
Should You Have Emerging Markets In Your Portfolio? How To Decide
Emerging markets have underperformed in recent years, but some analysts believe a resurgence is overdue. A report from RBC Capital Management notes some promising trends for these up-and-coming economies. China's dominance of the segment has lessened, emerging-market currencies have shown strength and the U.S. trade war likely won't involve some important emerging market economies—namely, India, Brazil and South Africa. Does this mean it's time to expand your portfolio beyond developed economies? Let's discuss the pros and cons of investing in emerging markets, how much you should allocate to the segment and three ways to fulfill that allocation. Emerging markets are economies in transition from developing to developed. They are economic adolescents: They show some characteristics of fully developed countries, but they remain less sophisticated than the U.S., U.K., Canada, Germany and others. Relative to developed nations, emerging economies demonstrate: Investment research firm MSCI includes 24 countries in its emerging markets index. Six of the top emerging markets are China, India, Brazil, South Korea, Taiwan and Mexico, according to Nasdaq Contributor Prableen Bajpai. The advantages of investing in emerging markets include higher growth potential, diversification benefits and attractive valuations. Emerging markets can grow quickly. You can see the growth potential informally by reviewing the history of iShares MSCI Emerging Markets ETF (EEM), which tracks the MSCI Emerging Markets index. The ETF grew 338% from April 2003 to December 2007, which averages about 96% annually. In the past five years, the fund has appreciated 8.4% annually on average and is up 11.2% over the last 12 months. To be clear, these growth periods have not been smooth and easy. The iShares ETF has demonstrated dips as extreme as its gains. Even so, the emerging markets fund outperformed the S&P 500 between early 2003 and 2010. Since then, the S&P 500 has pulled ahead. Diversification is a strategy for managing risk and volatility. By investing across sectors, company sizes, asset types and geographies, you incorporate varying behaviors into your portfolio. Ideally, these varying behaviors have a mild offsetting effect when economic or financial market conditions change. Instead of watching all your positions lose value simultaneously, you might see some rise while others fall. The net effect is less extreme behavior for your portfolio as a whole. Emerging markets contribute to this strategy. For example, Brazilian or Chinese equities may experience gains related to local conditions that wouldn't benefit, say, Apple or Microsoft. Or, your domestic stocks may react more negatively to a U.S. economic recession than your emerging markets holdings. Emerging market stocks can be better values than domestic stocks. The P/E ratio of the iShares MSCI Emerging Markets ETF portfolio is 15.63. The fund's P/B ratio is 1.97. Both metrics are modest relative to the S&P 500, which has a P/E of 28.39 and a P/B ratio of 4.87. Emerging market stocks tend to be volatile, partly because they are subject to currency risk and political risk. With greater growth potential comes greater volatility. Emerging market stocks can fall as quickly as they can rise. For example, the iShares fund and the MSCI Emerging Markets Index lost half their value in the wake of the 2008 global financial crisis. They also dipped more than 35% between mid-2021 and late-2022. If the local currency loses value relative to the U.S. dollar, it can offset returns or magnify losses. Currency risk can worsen the normal volatility of emerging markets stocks. Purdue University's Craig Brown notes that the current trade policy uncertainty will likely increase currency volatility globally. Global U.S. companies like McDonald's and Amazon also face currency risk. However, these companies generate a lot of revenue in the U.S., which limits the relative currency effects. War, changing monetary policy and fluid regulations are political risk factors present in emerging market economies. These dynamics can destabilize the business environment, reduce earnings and shrink investment returns. Emerging markets assets are too volatile to be core holdings, no matter how risk-tolerant you are. Their ideal role is a complementary one. Alongside more stable assets, emerging market securities can add upside and improve portfolio diversification. Many investors limit their emerging markets exposure to a single-digit allocation. Here are some allocation data points to consider: The right allocation for your portfolio depends on your risk tolerance and investing timeline. You could start with a small allocation, say 2%, and then build your exposure as you get comfortable with these assets. To decide if emerging market investing is right for you, consider two questions: There are three common ways to invest in emerging markets. The lowest-risk option is purchasing a global securities fund that includes emerging markets exposure. You can also pursue a more targeted emerging markets investment with a dedicated ETF. The riskiest approach is via American Depository Receipts (ADRs), which are stocks of foreign companies trading on U.S. exchanges. Some global funds include emerging markets coverage alongside securities from developed countries. An example is Vanguard FTSE All-World ex-US ETF (VEU). The fund has more than 3,800 non-U.S. stocks from around the world. The emerging markets securities account for 26.4% of the portfolio. You can alternatively invest in a dedicated emerging markets fund. iShares MSCI Emerging Markets ETF (EEM) holds more than 800 emerging markets stocks. Another option is Vanguard Emerging Markets Bond Fund Investor Shares (VEMBX), which holds primarily government bonds from Mexico, South Africa, Turkey, Brazil, Peru and others. If you prefer individual positions, you can seek out emerging market stocks trading on U.S. exchanges. Examples include chip foundry Taiwan Semiconductor (TSM), Chinese tech company Alibaba (BABA) and PDD Holdings (PDD), an ecommerce company that originated in China. For more investing ideas, see best stocks to buy for 2025. Bottom Line Emerging market securities have risk, but they add a new layer of diversification and upside potential to your portfolio. If you decide to invest, move ahead with a small allocation to funds or individual stocks, and build your exposure over time. Depending on your risk tolerance and investing timeline, you could invest 2% to 9% of your portfolio in emerging markets. Emerging market stocks are riskier than U.S. stocks. Political unrest, regulatory changes and reactive currency values can affect business results and equity values. China, India, Brazil, South Korea, Taiwan and Mexico are emerging markets in 2025. Emerging markets can outperform developed markets. This occurred between 2003 and 2010. However, over the past 15 years, developed markets have performed better.
Associated Press
12-03-2025
- General
- Associated Press
EEM to Provide 600,000 Children's Bibles in 2025
'Now I know that God is my dad' - young girl after reading the Bible FORT WORTH, TEXAS / ACCESS Newswire / March 12, 2025 / Nastya's world was shattered when war took her parents, leaving her alone in an orphanage, overwhelmed with sorrow and hopelessness. She had no one to turn to - until she received a children's Bible in 2024. Clutching its pages every night, she searched for comfort and hope. Her teacher soon saw a transformation: the light returning to her eyes, a sense of peace settling in her Orphan With Bible Ukrainian Orphan Girl Holding Children's Bible One night, Nastya whispered, 'Now I know that God is my dad.' For the first time since losing her parents, Nastya knew she was not alone. Then, two months later, she experienced another miracle - she was adopted into a loving family. The one thing she refused to leave behind: her Bible. Right now, thousands of children like Nastya are waiting for the hope found in God's Word. Through the 2025 Bibles for Kids campaign, EEM aims to provide 600,000 illustrated children's Bibles in 21 languages to kids across Eastern Europe and beyond. In the last four years, EEM has provided 2.1 million children and teens with their own copy of God's Word through the ministry's annual Bibles for Kids campaigns. 'When kids grow up with a copy of the Bible in their own language, they discover that God's love is real, personal and everlasting,' said EEM CEO and President Bob Burckle. 'Children who receive a Bible find strength, peace, and the promise of eternal life with Jesus.' For more than six decades, EEM has faithfully worked to provide free Bibles and Bible-based materials to people in former Communist bloc countries and beyond. From smuggling Bibles behind the Iron Curtain in the 1960s to working with ministry partners to provide Bibles to refugees in the 2020s, EEM's mission is simple: to share God's Word with everyone. Through partnerships with churches, schools, orphanages, refugee ministries and rehabilitation centers, EEM distributes Bibles in over 36 countries in more than 32 languages. 'The Bibles for Kids campaign invites Christians worldwide to come alongside these children in faith - through prayer and financial partnership. Every Bible placed into these precious hands is a chance for a child's future to be changed for eternity,' said Dirk Smith, EEM Vice President. 'With this year's matching fund campaign, every $5 donation provides two Bibles to two children,' Smith added. 'More than a book; it's a life-changing message - an invitation to eternity with Jesus!' To learn more about Bibles for Kids, visit About EEM (Eastern European Mission)
Associated Press
11-02-2025
- General
- Associated Press
EEM Celebrates 2024 HOPE Campaign, Meaning More Bibles to Transform Lives in Eastern Europe and Beyond
Generous Partners Faithfully Give 'Heart Language' Translations of God's Word FORT WORTH, TEXAS / ACCESS Newswire / February 11, 2025 / Following a record-setting 2024, in which two million Bibles were distributed, EEM (Eastern European Mission), a ministry that has given free Bibles to Eastern Europe and the surrounding nations for 64 years, reports its end-of-year 2024 'HOPE' campaign was a tremendous Woman With Bible An Eastern European Woman reads a Bible gifted to her by EEM. 'Thanks to generous partners who are committed to seeing God's Word go forth and transform lives, EEM will be able to send more Bibles and Bible-based resources throughout Eastern Europe and beyond in the first quarter of 2025 than expected,' said EEM Vice President Dirk Smith. 'Each and every Bible that rolls off the printing presses already has an address attached to it. The demand and hunger for God's Word continues to grow and exceed our ability to print and share Bibles,' said Smith. Many of these Bibles and resources will be given to families and individuals who have never owned a Bible in their heart language. Despite the ongoing Russo-Ukrainian war and brutal winter, EEM's distribution of God's Word continues. In fact, Bibles are one of the top requested resources among the people, even in these war-torn regions. 'People are desperately seeking hope. Many are asking for Bibles to read in their bomb shelters,' shares EEM President Bob Burckle. 'It's beautiful how they are finding such remarkable solace and joy within the Word of God in this time of continued turmoil and darkness; their hope and resilience in prayer is an example to the rest of the world,' said Burckle. EEM continues to give accurate native-language translations of God's Word to the nations of Eastern Europe and beyond - to individuals, churches, public schools, orphanages, hospitals, prisons and rehabilitation institutions. In nations such as Ukraine, Romania, Croatia, North Macedonia and Moldova, EEM has distributed Bibles both in public schools and directly to students through Bible elective courses, which have been offered in schools for more than 15 years now. EEM field workers report Christians continue to actively minister through evangelism, refugee missions, children's camps, women's ministries and discipleship programs. 'We have witnessed an awakening to the Spirit of God throughout Eastern Europe, which has produced a profound transformation to this region of the world, something many in the West have yet to hear about,' said Smith. 'These resilient people are changing their communities and the entire region for good.' 'God's Word is still the most powerful tool to put in the hands of those who don't know Him,' said Smith. 'The ancient, timeless truth of Scripture continues to be relevant, transforming lives across the world.' About Eastern European Mission
Associated Press
27-01-2025
- General
- Associated Press
2 Million Free Bibles Distributed in 36 Nations and 32 Languages in 2024
EEM Gives Glory to God for Eternal Impact of Generous Donors Partnering to Spread Hope in the Region FORT WORTH, TEXAS / ACCESS Newswire / January 27, 2025 / As requests for Bibles continue to pour in from the 36 nations EEM (Eastern European Mission) is blessed to serve, the ministry gives glory to God that it has been able to fulfill 2 over million requests for free Bibles in 2024 - the most ever in the ministry's history. EEM has been faithfully serving in this region for more than six decades, distributing free Bibles to all who have need, including smuggling them under the Iron Curtain in the early years. Just as Bible sales in the U.S. grew in 2024 with more people looking for sources of hope and strength in these challenging times, individuals throughout Eastern Europe and the surrounding regions - especially those impacted by the war in Ukraine - have similarly turned to faith as the only sure foundation in an unsteady world. EEM shares reports of growing church attendance and an openness to Bible education in public schools alongside stories of lives changed as hearts are exposed to God's Word, often for the very first time in their own language. 'We are grateful to God for what He has done through our donors' generous giving in 2024,' said EEM President Bob Burckle. 'We look forward to continued growth, as despite these amazing numbers, the need still outweighs the provision.' From a leader in Lithuania being miraculously healed and sharing God's Word with the nurse who attended him, seeing faith blossom in her life, to dozens of refugees cared for weekly through a ministry in Athens, Greece, to many baptized at partner summer camps, new stories come in every day of how God is working through Bibles being distributed throughout Eastern Europe. 'We are humbled to be a part of the amazing work that God is doing, as we celebrate every day the fact that His Word will accomplish its purposes,' said EEM VP Dirk Smith. 'Just imagine, if each Bible given means a new believer welcomed into the Kingdom - which is always our prayer and aim - what joy these numbers bring to our hearts!' To learn more about EEM, see Eastern European Mission (EEM) was established in 1961 to provide Bibles and Bible-based materials throughout the former communist bloc countries in Eastern Europe. Today, EEM publishes and prints Bibles and New Testaments as well as Teen Bibles, Children's Bibles and Bible activity books, distributing them through a vast network of partner churches and organizations reaching more than 35 countries in 26 different languages. EEM is an accredited member of ECFA. For more information, visit EEM's website at
