The S&P/Citigroup Emerging Markets index gained 29.37% in 2005, compared with an 11.71% gain for the S&P/Citigroup Developed World index, according to Standard & Poor's.
Nicholas Aninos, an analyst at Standard & Poor's Index Services, said emerging markets, particularly in Latin America, were helped by currency gains against the U.S. dollar. "A larger number of emerging market currencies did well against the dollar than developed market currencies," he said. "Latin America was where a lot of the currency performance was."
Among the biggest emerging markets, South Africa returned 46.58%; Mexico, 41.33%; India, 41.15%; and Brazil, 37.16%.
Developed markets were helped mostly by strong performance in Japan and South Korea, which helped drive Asia/Pacific equity markets to a 27.41% gain for 2005, topping the 11.08% increase in Europe and the 7.86% gain in North American equity markets.
The small-cap S&P/Citigroup Extended Market index rose 15.45%, while the large-cap S&P/Citigroup Primary Market index gained 10.71%. Also, the S&P/Citigroup Growth index outperformed the value index, 13.27% to 10.12%.
The S&P/Citigroup Global Composite index, which combines developed and emerging markets, rose 12.56% in 2005.