Emerging markets have surged in 2025 with a performance gap investors haven’t seen in years. The MSCI Emerging Markets index is up more than 30% in dollar terms as of November 30, far outpacing U.S. equities. This strength extends beyond stocks: EM dollar-denominated sovereign bonds are up more than 11% as borrowing costs fall and credit quality improves, pushing yield spreads vs. US Treasuries to multi-year lows. Together, these rallies signal a broad-based, macro-supported EM recovery and raises the potential of a longer-term shift in market leadership. Discover Emerging Market Indexes.