How to Find the Best Emerging Market Stocks

Emerging market stocks often get overlooked, but adding them to your portfolio allows for diversification and potentially big returns. Just tread lightly.

concept of emerging markets with digital globe and financial charts superimposed on city skyline
(Image credit: Getty Images)

Emerging market stocks often get overlooked. Indeed, the U.S. stock market has long been one of the world's best sources for investment growth, and there's little reason to believe that will change going forward.

But it's important for investors to know that it's not the only place to stash your dollars if you want them to blossom.

Emerging markets (EMs) are a one-two punch, offering both the ability to spread out risk geographically, as well as the potential for explosive returns. But they carry plenty of risks all their own – sometimes too many, and too much, for more cautious investors. So it's best to know what you're getting into before you take the plunge into international waters.

Today, we'll discuss emerging markets, including what they are, why they have a place in certain portfolios, and what you should consider as you're seeking out the best emerging market stocks.

Kyle Woodley

Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.

Kyle was previously the Senior Investing Editor for, and the Managing Editor for before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism. 

You can check out his thoughts on the markets (and more) at @KyleWoodley.