Despite a 17.5% gain for the S&P/Goldman Sachs Commodity Index this year, commodity-dependent emerging markets underperformed.

One reason for the less-than-stellar performance of emerging markets so far this year is the composition of their equities markets. EM stock markets are heavily skewed towards banks (25% of the index), phone companies (12% of the MSCI index) and consumer companies (13%).

While the future looks bright for EM economies, many established companies may go by the wayside as Chinese firms expand their overseas presence.

Read more: What happened to the great EM trade of 2019?

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