I've been saying I should add emerging markets exposure for about two years. This week, I finally stopped talking about it and did it.
£150 into the iShares Core MSCI Emerging Markets IMI UCITS ETF (EMIM) on Trading 212. This fund covers large, mid, and small-cap companies across emerging markets — China, India, Taiwan, Brazil, South Africa, and about 20 other countries. The fee is 0.18% which is reasonable for EM exposure.
Why emerging markets? Because the global economy isn't just the US and Europe. Countries like India and Vietnam are industrialising rapidly. They have young populations, growing middle classes, and increasing consumption. Over the next 20-30 years, a meaningful chunk of global economic growth will come from these markets. Whether that translates into stock market returns is a separate question — EM equities have been disappointing for years — but I want some exposure just in case.
Why now? No particular reason. Markets weren't doing anything special. I just realised that if I kept waiting for the 'right time' I'd never do it. Sometimes the best reason to invest is simply that you've decided to.
This is a small position — about £150, maybe 1% of my portfolio — and I'll build it up slowly. Emerging markets are volatile, currencies move, and the risks are real. But over a long enough time horizon, I think a bit of EM exposure makes sense. Whether it actually pays off is something I'll only know in 20 years.
As always: this is what I did. Not what you should do. Do your own research. All investing carries risk. Emerging markets involve additional risks including political instability, currency fluctuations, and different regulatory environments. Past performance doesn't predict future returns.