Developed Markets Equity

Developed market equity mutual funds and ETFs own equity securities listed on... Developed market equity mutual funds and ETFs own equity securities listed on developed market stock exchanges. These funds, which can be actively or passively managed, may, depending on their mandate, own stocks in developed market economies that are highly advanced, and include countries such as the U.S., Canada, Japan, Australia, the United Kingdom, Italy, Germany, and France. Investors buy these funds to gain broad exposure to industrialized countries that are perceived as safer than developing market economies like India and China. Technology stocks have become a huge share of developed markets. For instance, in the U.S, the so-called Magnificent 7 (Meta, Nvidia, Microsoft, Apple, Google, Amazon, and Tesla) comprises a huge share of NASDAQ - the technology sector's benchmark stock index. The Magnificent 7 also accounted for the majority of the index’s growth in 2023. On the flip side, energy shares account for a much smaller share of developed market stock indexes than a decade ago. These funds may be appropriate for most investors, although worries about overvaluation and concentration risk in certain stocks mean that investment returns are far from guaranteed. Last Updated: 12/08/2023 View more View less

Developed market equity mutual funds and ETFs own equity securities listed on developed market stock exchanges. These funds, which can be actively or passively managed, may, depending on their mandate, own stocks in... Developed market equity mutual funds and ETFs own equity securities listed on developed market stock exchanges. These funds, which can be actively or passively managed, may, depending on their mandate, own stocks in developed market economies that are highly advanced, and include countries such as the U.S., Canada, Japan, Australia, the United Kingdom, Italy, Germany, and France. Investors buy these funds to gain broad exposure to industrialized countries that are perceived as safer than developing market economies like India and China. Technology stocks have become a huge share of developed markets. For instance, in the U.S, the so-called Magnificent 7 (Meta, Nvidia, Microsoft, Apple, Google, Amazon, and Tesla) comprises a huge share of NASDAQ - the technology sector's benchmark stock index. The Magnificent 7 also accounted for the majority of the index’s growth in 2023. On the flip side, energy shares account for a much smaller share of developed market stock indexes than a decade ago. These funds may be appropriate for most investors, although worries about overvaluation and concentration risk in certain stocks mean that investment returns are far from guaranteed. Last Updated: 12/08/2023 View more View less