3 Winners and 3 Losers from Emerging-Market Funds’ Big Rally

3 Winners and 3 Losers from Emerging-Market Funds’ Big Rally

merging-market funds will have a tough act to follow in 2026. The category racked up big gains last year following small returns for years. And a mix of factors like trade tensions prompted many investors to shift their dollars outside the US. Should you add emerging-market funds to your portfolio? And which ones were winners or losers? Morningstar’s senior principal of ratings Russ Kinnel dug into the data. The editor of the FundInvestor newsletter is here to tell you want he found.

Subscribe to Morningstar’s FundInvestor newsletter.

On this episode:

00:00:00 Welcome

00:01:20 Why Emerging‑Market Funds Surged After Years of Sluggish Returns

00:02:29 Market Shifts of Leadership in Asia

00:03:36 2025’s Winning Emerging-Market Funds

00:05:08 2025’s Losing Emerging-Market Funds

00:09:34 What’s Next for Emerging‑Market Funds in 2026?

00:10:21 How Fidelity Contrafund’s Will Danoff Built a Successful Stock-Picking Record

00:13:38 What Everyday Investors Can Learn from Danoff

Watch more from Morningstar:

How New Retirees Can Spend More Without Risking Their Savings

Beyond AI: Are Quantum Stocks the Next Big Thing in Tech Investing?

How to Generate Steady Income in 2026

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