I have been writing a series of articles as I build my soccer team portfolio for wealth creation. In case if you have not read them yet, please feel free to access the list of articles here.
Coming to the emerging markets, I think this is the best time to start investing in emerging markets if you have not done it earlier. My Soccer portfolio — Left Midfielder position played by an emerging markets ETF. Feel free to read the details on why I have picked a particular emerging market ETF below.
Why is it the best time to invest in ‘Emerging Markets?
I have constructed a simple macroeconomic dashboard where I track all developed and emerging markets. I allocate a WIBE Score, a proprietary score based on % returns, GDP, Country’s political and economic outlook, stock volume, volatility, rate of change, and relative strength. In simple terms, the higher the WIBE score, the better is the risk-adjusted returns (or) more robust the country shall perform. The ranking changes every month based on the macroeconomic outlook, and I study them every month or once a quarter.
Here is the updated global macroeconomic dashboard for your reference.
The dashboard shows various countries ranked based on the highest WIBE score to the lowest. In this case, Canada stands first, followed by Russia, India, and the USA, to the last being South Korea. India is the only emerging country in the top ten ranks, and Mexico is another at eleventh rank.
Most emerging market countries have not performed well and are yet to recover from the COVID-19 pandemic. Some Countries to take note of are:
- South Korea (though not classified as an emerging market by Vanguard, but falls under emerging markets when it comes to iShares)
- China / Hong Kong