iShares MSCI Emerging Markets ETF Posts Nine-Week Rally, Longest Since 2005
iShares MSCI Emerging Markets ETF has gained for nine consecutive weeks, its longest rally since 2005, boosting its share of global market capitalization. International stocks account for 38% of the $97 trillion equity universe after rebounding from a 33% low in December 2024, signaling a rotation away from U.S. dominance.
1. Record Rally for Emerging Markets ETF
iShares MSCI Emerging Markets ETF has recorded nine straight weeks of gains, its longest rally since 2005. The streak highlights a shift in investor appetite towards emerging market equities.
2. Rebound in Global Market Share
International stocks now represent 38% of the $97 trillion global equity market, up from a 33% low in December 2024. This rebound bolsters emerging markets exposure as investors diversify beyond U.S. technology dominance.
3. Structural Drivers of Rotation
Fiscal expansion, rising populism and the end of global deflation are cited as key catalysts fueling non-U.S. equities. Meanwhile, AI disruption may compress U.S. service-sector margins more than manufacturing-heavy emerging markets.
4. Outlook and Risks
Continued policy support and real-asset demand could sustain emerging markets outperformance into the late 2020s. However, risks from geopolitical tensions, inflation variability and currency fluctuations could reverse the current trend.