From “if” to “where:” Which emerging markets are rebounding

Emerging market equities have surged in 2025, achieving record highs and outperforming major indices like the S&P 500. The momentum is fueled by a weakening US dollar, favorable policy shifts, and robust growth prospects compared to developed markets. Notably, South Korea and China lead this resurgence with significant returns driven by technological advancements, cultural exports, and strategic economic reforms.

China's targeted stimulus has revitalized its market while maintaining attractive valuations relative to developed peers. As diplomatic relations with the US show signs of improvement, China's long-term growth potential remains strong.

Meanwhile, South Korea's diverse economy benefits from booming semiconductor demand and cultural exports like K-pop and cosmetics. Investors are increasingly focusing on single-country ETFs to capture these unique opportunities within emerging markets as they continue to drive global economic leadership.