Asset Managers Launch Emerging-Market ETFs as AI Stocks Tighten Grip on MSCI Index
Updated
Updated · Bloomberg · May 28
Asset Managers Launch Emerging-Market ETFs as AI Stocks Tighten Grip on MSCI Index
2 articles · Updated · Bloomberg · May 28
Pictet Asset Management, T. Rowe Price and Baron Capital this year rolled out actively managed emerging-market ETFs aimed at stock-picking beyond benchmark heavyweights.
Those funds are being pitched as alternatives to passive products tied to the MSCI Emerging Markets Index, which managers say is increasingly concentrated in a small group of AI-linked tech stocks.
The new ETFs target areas such as commodity producers and technology suppliers that firms argue are underrepresented in widely followed indexes.
The launches signal a broader shift in emerging-market investing, with managers trying to counter the same index concentration pressures that have reshaped U.S. equity markets.
With AI stocks soaring, is shifting to commodity-focused funds a wise move or a missed opportunity?
Beyond the dominant tech giants, where are the next big investment opportunities in emerging markets?
As AI giants reshape emerging markets, is the classic diversification strategy now obsolete?