How long will the emerging market equity rally last?

In a bid to combat a weakening US dollar and trade uncertainty, investors have turned their attention to emerging markets. Europe-domiciled global emerging market equity funds have just had their best net inflow performance since the first quarter of 2023, with total inflows for 2025 reaching €11.6bn. In the third quarter of the year, the Morningstar Emerging Markets Index rose by 9.5%, driven by macro tailwinds and valuation catch-ups. Investors have also changed their approach to emerging markets, with more focus on passive strategies; four of the five biggest net inflows in global emerging...