Emerging markets stocks are carrying last year's momentum into 2026, and the Schwab Fundamental Emerging Markets Equity ETF is benefiting.

The S&P 500 is down 1.6% so far in 2026. Meanwhile, emerging markets are up sharply, developed international markets are outperforming, and a decade-long valuation gap between US and non-US equities is finally closing.

Emerging markets have surged recently, returning 14.83% year-to-date and nearly 50% over the past year—far outpacing developed markets.

By Summer Zhen HONG KONG, March 23 (Reuters) - Global hedge funds' selling of emerging Asia market stocks last week was the most since April 2025 amid heightened risk aversion, according to a Goldman Sachs client note seen by Reuters.

Once a top pick among emerging-market investors, local-currency debt is quickly becoming a pain trade. After months being boosted by a weaker dollar, slowing inflation and interest-rate cuts, the bonds have delivered a loss of more than 4.

Columbia Emerging Markets Fund returned 3.47% in Q4 2025, trailing its benchmark. Read the full analysis for more details.

The dollar nursed steep losses against major ​currencies on Tuesday in a wild start to the week after U.S. President Donald Trumpdelayed the ‌bombing of Iran's power grid, a move that allayed fear of a prolonged war in the Middle East.

Stocks rose and oil prices fell sharply after President Donald Trump on Monday said the United States would postpone further strikes on Iran’s energy infrastructure, pending the outcome of negotiations.