Emerging markets stocks are on a tear, returning 39% over the 12 months through August. So why isn't Baron Emerging Markets ( BEXFX ), a member of the Kiplinger 25 , our favorite no-load mutual funds , in the same stratosphere?

The fund's 24% gain over the same period is impressive on a stand-alone basis, but it lags the MSCI Emerging Markets Index. That's a reversal of fortune from a few months ago, when the fund was keeping better pace with the benchmark.

Tech hits a rough patch

Part of the reason is tech stocks . Some of the fund's top holdings in that sector were big gainers in 2025 and early 2026, and they have been key contributors to the fund's returns. But in recent months, those stocks have pulled back.

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