• Investors have traditionally associated emerging markets with commodities and infrastructure.
  • Today, the MSCI Emerging Markets Index is dominated by the information technology and financial sectors.
  • The influence of technology stocks in today’s emerging-market indexes partly reflects the importance of technology companies in the economic growth of Asian countries.

Twenty years ago, the MSCI Emerging Markets Index was made up of companies from a variety of sectors and countries that were traditionally associated with commodities and infrastructure. As a result, its performance closely tracked the price of oil. This all changed in 2014, when oil prices began to trend sharply lower — and the Index began to more closely follow information technology shares as those companies grew in importance.

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