Emerging Market Diversification Offers New Potential
Investors seeking to balance their portfolios are looking at EMEA markets to offset high concentration in Asian benchmarks.
Updated on Oct. 27, 2026 in Investing
Live Poll
Is now a good time to diversify your investments beyond the largest Asian emerging markets?
As of October 27, 2026, analysts are highlighting the potential of emerging markets in Eastern Europe, the Middle East, and Africa (EMEA). Investors looking to diversify portfolios beyond the Asia-dominated MSCI benchmark are increasingly examining opportunities in regions like Poland, Hungary, and Saudi Arabia.
Why it matters
Asian markets account for 80% of the standard MSCI emerging markets benchmark, which can leave investors unintentionally exposed to a narrow geographic concentration. By considering EMEA holdings, investors may find alternative growth drivers in banking, infrastructure, and renewable energy sectors.
Asian markets comprise 80% of the MSCI emerging markets benchmark, including 50% from Taiwan and South Korea and 30% from China and India. Consequently, many investors are exploring alternative regional exposure to mitigate this high concentration.
The players
Adnan El-Araby
An investment analyst who recommends focusing on emerging markets within the EMEA region.
Barings Emerging EMEA Opportunities Trust
A financial trust that manages diversified assets across emerging markets in Eastern Europe, the Middle East, and Africa.
MSCI
A global provider of equity benchmarks used to track the performance of international emerging markets.
The details
The Barings Emerging EMEA Opportunities Trust provides exposure to non-Asian regions by allocating 30% of holdings to South Africa, 23% to Saudi Arabia, and 12% to the United Arab Emirates. Investors gain access to these markets by selecting companies focused on local banking, infrastructure, and renewable energy. Potential for innovation in markets like Hungary remains tied to the execution of planned government policy reforms.
Timeline
South Africa established a Government of National Unity in 2024.
This analysis was published on October 27, 2026.
Money Landscape
The standard MSCI emerging markets index is heavily weighted toward Asia, creating a structural concentration that leaves many portfolios tethered to that region's performance. Emerging EMEA markets offer a distinct alternative for investors looking to balance this benchmark-driven exposure.
Investors should review their current fund allocations to determine if their exposure to emerging markets is overly concentrated in Asian equities. Consult with a qualified financial professional to assess if adding EMEA-focused vehicles aligns with your long-term risk tolerance and goals.
The takeaway
Focusing exclusively on the primary MSCI benchmark may mask significant growth opportunities in other developing regions. Review your account statements to confirm your geographic diversification and discuss how regional pivots impact your total portfolio risk with a professional advisor.
Further reading
For more on managing a diversified portfolio, review our guide to Investing.
Source note: This article includes information reported by MoneyWeek.
Live Poll
Is now a good time to diversify your investments beyond the largest Asian emerging markets?
