Conflict was telegraphed; Middle East is only 5% of EMs. Short-term higher oil prices may lead to tactical changes, but big picture means more US uncertainty/spending, fueling weaker dollar/stronger EM equity trade. Time to double down.

If conflict lasts longer, leading to higher oil, inflation, US rates, and stronger dollar, that could be a headwind. Not base case. Things already reverting: oil opened ~5% higher vs. 10% feared. People pricing it out, saying it may be over in 1-2 weeks. Reasons to buy the dip.

Yes. EM index is 80% Asia, ~30% China, plus Korea/Taiwan, creating concentration risk and energy import exposure. Allocators seek smaller pockets: active/single-country strategies, barbell approach adding value/cyclicality. Doubling down on Latin America (Argentina, Brazil, Colombia) for value (high-single-digit PEs), growth, commodity exposure, and carry - does well with elevated commodity prices without geopolitical risk.

Both. Some use passive tactically but targeted (specific countries/events). For long-term core allocation, most investors lack capacity to follow 27 EM countries, so they trust active managers via ETFs for benefits like tax efficiency, lower fees, transparency.