Most investors either ignore emerging markets or hand their money to active managers who underperform. Academic research points to a better approach: factor investing in emerging markets, targeting the company characteristics that have persistently driven higher returns.
The investors who stay calmest during market volatility aren't the bravest. They hold passive investing products that don't ask them to make decisions. Research from Morningstar, Vanguard, and academic studies shows that product design, not temperament, explains why passive fund investors trade less, hold longer, and capture more of their returns. UK flow data from the current Iran-driven selloff confirms the pattern in real time.
Robin Powell
1 day ago10 min read
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