Goldman Sachs ActiveBeta Emerging Markets Equity ETF

GEM

Market cap $1.43B

If 2025 was a very kind year for emerging markets, what will 2026 hold? Many investors and market watchers are anticipating a strong repeat performance for ex-U.S. stocks.

Even the tidal wave of tariffs wasn't enough to hold back the rally in global equities last year. As it turns out, emerging markets were the single best-performing major regional indices in 2025.

Even the tidal wave of tariffs wasn't enough to hold back the rally in global equities last year. As it turns out, emerging markets were the single best-performing major regional indices in 2025.

China equities have had their highs and lows in recent years. Having historically provided high levels of growth, debt and governance concerns saw many investors turn from them.

Ex-U.S. equities have been a bright spot for portfolios this year, offering a source of return as U.S. markets have faced volatility. Entering 2025, many investors were already moving to add ex-U.S. stocks to address a recent underwriting trend; Liberation Day and further tariffs have added to that momentum.

In a year that has seen foreign equities ETFs stand out so strongly, emerging markets may be somewhat underrated. Broad, global equities strategies — especially those that exclude U.S. firms — have done very well as investors have looked abroad to diversify.