How emerging-markets stocks can keep trouncing the S&P 500

How emerging-markets stocks can keep trouncing the S&P 500Listen(8 min)Listen(8 min)Emerging-market stocks have broadly crushed the U.S. equities market this year, in one of the biggest market surprises of 2025.“EM outperformance comes after years and years of underperformance,” Arjun Jayaraman, a portfolio manager for emerging-market equities and head of quantitative research at Causeway Capital Management, said in a phone interview. “It’s like the rubber band got really stretched in one direction,” as the U.S. had long beaten emerging-market equities, he said. About the AuthorChristine Idzelis is a markets reporter at MarketWatch and is based in New York.Copyright © 2025 MarketWatch, Inc. All rights reserved.