Rising geopolitical tensions and intensifying crises across emerging and frontier markets have failed to halt positive performance, with these indexes outstripping returns in developed markets, data from Russell Investments show.
The Russell Emerging Markets index returned 11.1% for the year-to-date through Aug. 6, while the Russell Frontier index gained 14.6% in the same period.
The Russell Developed index ex-U.S. returned 5.2% to Aug. 6, and the Russell Developed Europe index gained 3%.
It is a similar story for the indexes from July 1 through Aug. 6. Emerging markets returned 3.3% for that period, and frontier markets, 5%. By comparison, the developed ex-U.S. index showed -1.6% and the developed Europe index, -3.6%.
The positive performance comes amid an intensifying crisis in Ukraine, increased sanctions against Russia and the on-going conflict in Gaza.
Strategists at Russell said in the statement that investors should keep an eye on geopolitical catalysts that could trigger fear and market volatility.
