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.
New research covering 100 years of US stock market data shows that just 46 firms out of nearly 30,000 drove half of all shareholder wealth creation — down from 89 in the original study. With wealth increasingly concentrated in fewer winners, the case for indexing has never been stronger. Here's what the numbers mean for your portfolio.
Robin Powell
16 hours ago8 min read
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