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This Emerging Markets ETF Beat the S&P 500 for 16 Years. Could It Happen Again?

This international ETF is a bit top-heavy with Asian tech majors -- but could be a good choice for patient investors.

This Emerging Markets ETF Beat the S&P 500 for 16 Years. Could It Happen Again?

Published July 18, 2026 · Category: Finance

Overview

Some of the biggest gains from the U.S.-led artificial intelligence (AI) boom have been going to companies in other countries. Some of the world's best semiconductor stocks are in countries like Taiwan and South Korea. These countries are often categorized as "emerging markets" by international stock ETFs.

If you want to buy some of the world's leading AI chip stocks, the iShares MSCI Emerging Markets ETF (NYSEMKT: EEM) might be a good choice. It holds a portfolio of more than 1,100 international stocks in fast-growing economies beyond America.

Details

Emerging markets stocks are often described as "risky" compared to U.S. stocks. But this emerging markets ETF has a track record of outperforming the S&P 500 index. Could it keep beating U.S. stocks?

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Source

Originally published at www.fool.com.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.