If Goldman Sachs’ predictions about the future growth of emerging markets are remotely right, PIE could be an increasingly useful way to access this market (see Taking Stock: Equity Will Survive This Tiring Bout, Dow Jones Newswire, 9/8/2010).
Goldman suggests total world equity market capitalization could stagger up to $83 trillion dollars by 2020 and on to $146 trillion by 2030. That’s from the comparative bagatelle of $43 trillion now.
Unsurprisingly, the total is going to get bigger largely thanks to the emerging markets, which are also of course poised to account for an ever-larger cut. Emerging-market equity cap could increase from $14 trillion now to $37 trillion in 2020 and $80 trillion in 2030, the bank says.
Goldman thinks funds could purchase $4 trillion of emerging-market equities over the next 20 years, and this figure could be twice as large with only moderately higher underlying assumptions.
Click here for more information about the PowerShares DWA Emerging Markets Technical Leaders ETF (PIE).
