Market tiers are the groups that index providers such as MSCI sort each country's stock market into: developed, emerging, frontier, and standalone. The tier decides whether a country's stocks enter global indexes tracked by index funds and ETFs, which affects foreign fund flows and market liquidity. Data in this article is as of 16 October 2026.

Key Takeaways

• MSCI sorts stock markets into four categories: developed, emerging, frontier, and standalone. It uses three criteria: economic development (developed only), size and liquidity, and market accessibility.
• FTSE Russell uses its own categories (Developed, Advanced Emerging, Secondary Emerging, Frontier, Unclassified), and S&P Dow Jones Indices (S&P DJI) uses Developed, Emerging, Frontier, and Stand-alone. A country can sit in different tiers depending on the provider.
• A tier is not a quality rating or an investment recommendation. It measures how easily global investors can get in and out of a market.
• On 15 October 2026, MSCI proposed moving Indonesia from emerging to standalone. This is only a proposal: feedback is open until 30 April 2027 and the final decision is due by 30 June 2027.
• On Mobee, you can see how a country ETF works through the iShares MSCI South Korea tokenized ETF (EWYON), which tracks the MSCI Korea index.

What Are Market Tiers?

Index providers such as MSCI, FTSE Russell, and S&P DJI group each country's stock market into tiers. These groupings are used to build global indexes. Index funds and ETFs that follow those indexes buy stocks according to their composition. So when a country moves up or down a tier, the index changes, and the money following it can shift too.

A tier is not a report card for a country. A large economy can be held back in a tier because access for foreign investors is judged inadequate, while a small country can have a well-run market. The most accurate way to read it: a tier measures how easily and how safely global investors can enter and exit that market.

The Four MSCI Tiers

MSCI is the most widely used reference, so this article uses it as the main benchmark. MSCI places each country in one of four categories.

A note on timing: Greece is still emerging, but MSCI has decided to upgrade it to developed at the May 2027 review. Bulgaria is still standalone, and MSCI will move it to frontier at the same review.

Developed Market

A developed market has a high-income economy, a large and liquid stock market, and rules that make it easy for foreign investors. It is the only tier whose requirements include economic development. Examples are the United States and Japan. For an example of the Japanese market, see the EWJ ETF article.

Emerging Market

An emerging market has an economy that is still developing. Its size and liquidity already meet higher requirements, but access or institutional framework is not yet fully on par with developed markets. South Korea, Taiwan, India, and Indonesia are in this tier according to MSCI as of 16 October 2026. For an example of the South Korean market, read the EWY ETF article.

Frontier Market

A frontier market is smaller and less liquid than an emerging market, but still meets the minimum requirements to enter MSCI indexes. Its requirements are the lowest: just 1 company meeting the size requirement and liquidity (ATVR) of 2.5%, as in the criteria table below. MSCI also recognizes an Advanced Frontier subcategory within Frontier. Example countries are Vietnam, Kenya, Croatia, Iceland, Jordan, Tunisia, and Ivory Coast. Some investors pay attention to these markets because of their economic growth potential, but liquidity, volatility, currency, and regulatory risks are generally higher, and prices can move sharply on large orders. Classification can also differ between providers: Vietnam is still frontier at MSCI, but FTSE Russell moved it to Secondary Emerging effective 21 September 2026.

Standalone Market

A standalone market is a category for markets that are not part of MSCI's Emerging Markets or Frontier Markets indexes. A market can land here because it is newly assessed or was previously closed to some investors, or because its accessibility or liquidity deteriorated severely. This is the category now in the spotlight for Indonesia. The full explanation is in the standalone market article.

MSCI Criteria: What Gets Assessed?

MSCI assesses three things: economic development (developed only), size and liquidity, and market accessibility. The size and liquidity thresholds differ by tier, as shown below.

Source: MSCI 2026 market classification framework. MSCI updates thresholds periodically.

Accessibility criteria are qualitative. MSCI looks at five aspects: openness to foreign ownership, ease of capital inflows and outflows, efficiency of the operational framework, availability of investment instruments, and stability of the institutional framework. This is the aspect that most often decides the outcome, because a market can pass size and liquidity yet stay in a lower tier because of access problems.

MSCI, FTSE Russell, and S&P DJI: Different Providers, Different Tiers

The three large index providers each run their own classification system, and the results are not always the same.

The differences are real. A few examples from recent updates:

So when you read news about a country being "upgraded" or "downgraded", check which index provider is speaking. News from MSCI does not automatically apply at FTSE Russell or S&P DJI.

Why Do Tiers Matter to Investors?

There are three practical reasons. First, index funds and ETFs tracking MSCI or FTSE Russell indexes buy and sell stocks in line with index composition, so a tier change can trigger buying or selling by those funds. Second, tiers affect a country's weight and presence in global indexes, which affects liquidity in its domestic market. Third, tiers give a rough hint about risk, especially liquidity and access risk.

There are limits, though. A tier change does not guarantee price direction, and prices often move before a change takes effect because markets anticipate it. A tier is also not a judgment on any particular company. Treat a tier as context, not a buy or sell signal.

Indonesia's Position as of October 2026

As of 16 October 2026, MSCI still classifies Indonesia as an emerging market. On 23 June 2026, MSCI kept that status but warned it would consider options if reform progress was not sufficient by the November 2026 review. Its concerns were opaque shareholding structures and suspected coordinated trading.

On 15 October 2026, MSCI opened a consultation on a proposal to move the MSCI Indonesia indexes from emerging market to standalone market. This is a proposal, not a decision. Feedback is open until 30 April 2027, and the final decision is due by 30 June 2027. MSCI's release does not state an effective date. During the consultation, MSCI is holding back certain adjustments to Indonesian stocks in its indexes. Details of the proposal and what standalone means are in the standalone market article.

One important note: the proposal concerns index classification, not an assessment of each Indonesian company's business, and it does not imply a price direction for any particular stock.

Market Tiers and Country ETFs: Japan and South Korea

A country ETF tracks the index of a single country, often the MSCI index for that country. This shows how tiers appear in real products. Japan is a developed market, and the EWJ ETF tracks the MSCI Japan index. South Korea is an emerging market, and the EWY ETF tracks the MSCI Korea index. In its June 2026 review, MSCI said it would continue to monitor South Korea.

If you are new to ETFs, start with the explanation of ETFs: how they work, types, and risks, then continue to the EWJ ETF and EWY ETF articles.

South Korea ETF on Mobee

If you want to see an emerging market country ETF in practice, Mobee offers the iShares MSCI South Korea tokenized ETF (EWYON) with a rupiah pair on the EWYON-IDR Spot Trade page. The token is designed to follow the price of the EWY ETF. It is not the same as owning the ETF directly, so first understand the difference between tokenized stocks and regular stocks. Mobee is operated by PT CTXG Indonesia Berkarya, licensed and supervised by OJK. Install the Mobee app to see the price.

Conclusion

Market tiers split markets into developed, emerging, frontier, and standalone based on size, liquidity, and how easily global investors can access them. MSCI, FTSE Russell, and S&P DJI each have their own system, so one country can sit in different tiers. In Indonesia, MSCI's 15 October 2026 proposal to move its indexes to standalone is still at the consultation stage, with the final decision due by 30 June 2027. Use tiers as context for liquidity and access risk, not as a buy or sell signal.

Frequently Asked Questions

What is the difference between a developed market and an emerging market?

A developed market has a high-income economy, a large and liquid market, and easy access for foreign investors. An emerging market is already reasonably large and liquid, but its access or institutional framework is not yet on par. Under MSCI's framework, economic development is assessed only for developed markets.

Is Indonesia an emerging market or a frontier market?

As of 16 October 2026, MSCI still classifies Indonesia as an emerging market. On 15 October 2026, MSCI proposed moving it to standalone market (not frontier). This is still a consultation until 30 April 2027, with the final decision due by 30 June 2027.

What is a standalone market?

A standalone market is an MSCI category for markets that are not part of the Emerging Markets or Frontier Markets indexes. A market can be newly assessed or previously closed to some investors, or it may have been in a higher tier before its accessibility or liquidity deteriorated severely. Read the full explanation in the standalone market article.

What is a frontier market and how is it different from an emerging market?

A frontier market is smaller and less liquid, but still meets the minimum requirements for MSCI indexes. Emerging market thresholds are much higher: minimum liquidity (ATVR) is 15% for emerging and 2.5% for frontier. Examples of frontier markets according to MSCI: Vietnam, Kenya, Croatia, Iceland, and Jordan.

Who decides a stock market's tier?

Index providers, mainly MSCI, FTSE Russell, and S&P Dow Jones Indices. Each uses its own criteria and review schedule, so results can differ for the same country.

Are emerging markets riskier than developed markets?

Liquidity, access, and volatility risk are usually higher, but a tier is not a precise measure of risk. Returns in any market can rise or fall, and a tier does not guarantee price direction.

Does a tier upgrade or downgrade always move stock prices?

Not necessarily. Index funds may buy or sell when index composition changes, but markets often anticipate the change, and other factors still matter. Treat a tier as context, not a buy or sell signal.

Disclaimer

This article is for information and education only, not investment advice. Market classifications and data in this article are as of 16 October 2026 and may change following decisions by MSCI, FTSE Russell, and S&P DJI. MSCI's proposal for Indonesia is not yet a decision. Tokenized ETFs on Mobee are not the same as owning the ETF directly, and crypto assets are high-risk. Do your own research before making any decision. Mobee is operated by PT CTXG Indonesia Berkarya, licensed and supervised by the Indonesian Financial Services Authority (OJK).