Find growth in emerging markets

Outlook 2025Find growth in emerging markets

Political and central bank policy uncertainty dominated headlines in 2024, leading many investors to underweight emerging markets relative to US equities. While some headwinds remain, emerging markets typically have high long-term economic growth rates owing to factors like industrialization, urbanization, and a growing middle class. Many emerging markets also have younger populations with rising incomes, which can drive consumption and economic growth.

On top of providing an attractive growth opportunity, emerging market stocks are inexpensive relative to their US and other developed market counterparts. As such, today may be an opportune time for investors to consider allocating – or increasing allocations – to emerging markets equities.

Accessing earnings growth at attractive valuations

Emerging markets are projected to experience earnings growth in line with developed markets over the next three to five years, but emerging markets equities are trading at lower price-to-earnings (P/E) ratios, indicating they may offer better value. This suggests the market may not fully recognize the potential for long-term growth in emerging markets, signaling a potentially attractive entry point for investors today.

Emerging markets valuations appear favorable vs. developed markets

Emerging markets theme supporting chart

Source: FactSet. September 30, 2024. Past performance is not a guarantee of future results. Chart is for illustrative purposes only. Earnings per share (EPS) is a measure of a company's profitability that indicates how much profit each outstanding share of common stock has earned. Price-to-earnings (P/E) ratio is a valuation ratio of a company’s current share price compared to its earnings per share. Emerging markets equities are represented by the MSCI Emerging Markets Index; developed markets equities by the MSCI EAFE Index; US equities by the S&P 500 Index.

Investment solutions to consider

Delaware Emerging Markets Fund (DEMIX)

Delaware Emerging Markets Fund (DEMIX)

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Macquarie Focused Emerging Markets Equity ETF (EMEQ)

Macquarie Focused Emerging Markets Equity ETF (EMEQ)

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Delaware Ivy International Core Equity Fund (ICEIX)

Delaware Ivy International Core Equity Fund (ICEIX)

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Have questions? —

Contact us. Call 877 693 3546 or contact your regional director.

IMPORTANT INFORMATION

Investing involves risk, including the possible loss of principal.

Diversification may not protect against market risk.

Carefully consider the Fund’s investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Fund’s prospectus or the summary prospectus, which may be obtained by visiting macquarie.com/mam/literature for mutual funds, visiting macquarie.com/mam/etf-literature for ETFs, or calling 877 693-3546 Read the prospectus carefully before investing.

The Macquarie ETF Trust Funds are distributed by Foreside Financial Services, LLC. Foreside Financial Services, LLC is not affiliated with any Macquarie entity, including Macquarie Asset Management and Delaware Distributors, L.P.

ETFs may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market prices (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

Nothing presented should be construed as a recommendation to purchase or sell any security or follow any investment technique or strategy.

Risk is increased in a concentrated portfolio since it holds a limited number of securities with each investment having a greater effect on the overall performance. • The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments. • International investments entail risks including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

The MSCI Emerging Markets Index represents large- and mid-cap stocks across emerging market countries worldwide. The index covers approximately 85% of the free float-adjusted market capitalization in each country.

The MSCI EAFE (Europe, Australasia, Far East) Index represents large- and mid-cap stocks across 21 developed markets, excluding the US and Canada. The index covers approximately 85% of the free float-adjusted market capitalization in each country.

The S&P 500 Index measures the performance of 500 mostly large-cap stocks weighted by market value and is often used to represent performance of the US stock market.

Past performance does not guarantee future results.

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