Emerging markets are an important part of a well-diversified global equity portfolio. However, recent history reminds us that they can be volatile and can perform differently than developed markets. In THIS ARTICLE, Dimensional provides a longer historical perspective on the performance of emerging markets and the countries that constitute them.
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Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful.
International investing involves special risks, such as currency fluctuation and political instability. Investing in emerging markets may accentuate these risks. Sector-specific investments can also increase investment risks.
Diversification neither assures a profit nor guarantees against loss in a declining market.
Securities lending is an over-the-counter market that involves the borrowing and lending of securities predominantly for the purpose of covering short-sale positions. Participants include pension funds, mutual funds, and foundations, which lend their security holdings, as well as option traders, hedge funds, and other asset managers, which borrow security holdings. These parties rely on their respective intermediaries (custodians for the lenders and prime brokers for the borrowers) to broker their transactions and manage counterparty risk.
Securities lending involves risks. Revenue is not guaranteed and may fluctuate. Lending activities are conducted by the lending agents for the funds.