It is possible to invest in emerging markets (EM) by way of a low-cost index tracker. For example, Satrix offers South African investors an MSCI EM Feeder Fund and Old Mutual offers the Old Mutual EM ESG Index Feeder Fund.

Jason Swartz, the head of portfolio solutions at Satrix, says it is important to diversify your exposure in EM through a broad selection of countries. This can be cost-effectively achieved by investing in the MSCI EM index as it captures large, mid-cap and small-cap representation across as many as 26 EM countries. With 2,842 constituents, the index covers approximately 99% of the free-float-adjusted market cap in each country...

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