Unlocking Value: The Resurgence of International and Emerging Markets

A New Dawn for Global Investments: International and Emerging Markets' Early 2025 Rally

The year 2025 has marked a significant upturn for international equities and even fixed-income assets, indicating a fresh wave of momentum. Notably, emerging markets are exhibiting signs of a potential forward trajectory, signaling a shift in global investment dynamics.

EMXC's Remarkable Recovery: Retesting Pre-Crisis Levels and Beyond

The iShares MSCI Emerging Market ex-China ETF, identified by its ticker EMXC, recently matched its previous peak of $63.74 from June 10th, 2021, closing at $63.70 on July 18th, 2025. This resurgence suggests a renewed confidence in these markets, pushing them towards pre-crisis valuations.

The Lingering Shadows of 2008: A Decade and a Half of Modest Gains

The global financial crisis of 2008 significantly impacted both international and emerging market performance, leading to a prolonged period of subdued returns. For approximately 15 years, investors in non-U.S. asset classes have experienced predominantly single-digit annual returns, reflecting a challenging investment landscape.

Underappreciated Potential: Why International and EM Markets Still Offer Growth

Despite past performance, international and emerging markets continue to be seen as underappreciated and underinvested asset classes. Their current low valuations and nascent growth signals present a compelling opportunity for investors seeking diversification and long-term capital appreciation, challenging the prevailing sentiment of caution that has dominated since the financial crisis.