FYI: Large differences in returns between countries affects choice of active or index management.
Is South Korea a “developed” or “emerging” stock market? Most investors haven’t thought about this question, but a lot is riding on the answer.
FTSE Russell, one of the world’s leading index providers, considers South Korea’s stock market to be in the developed category. Rival MSCI puts that country’s market into the “emerging” category.
Welcome to the surprisingly complex world of asset allocation. Many investors are surprised to learn of this disagreement about how to classify South Korea. Investors have assumed that the “emerging market equity” category is well defined, both in terms of which countries are included and also how the category differs from others.
Regards,
Ted
https://www.marketwatch.com/story/adding-emerging-markets-to-your-stock-portfolio-is-tougher-than-it-looks-2018-10-17/print
