Updated
Updated · yardeniquicktakes.com · May 31
Emerging-Markets MSCI ETFs Beat S&P 500 by 14.5 Points as AI Lifts Taiwan and Korea
Updated
Updated · yardeniquicktakes.com · May 31

Emerging-Markets MSCI ETFs Beat S&P 500 by 14.5 Points as AI Lifts Taiwan and Korea

4 articles · Updated · yardeniquicktakes.com · May 31
  • EEM has climbed 25.4% year to date, outpacing the S&P 500’s 10.9% gain as the “Go Global” trade held up despite the latest Middle East war.
  • South Korea and Taiwan’s AI-driven rally powered much of that strength, while the EM ex-China fund EMXC surged 39.0%, reinforcing the call to avoid China.
  • Valuations still favor overseas equities: the US MSCI trades at 21.5 times forward earnings versus 14.2 for ACW ex-US, even as ex-US earnings estimates rise broadly and India surprises on the upside.
  • Europe, Japan and many emerging markets that import oil could gain further if the Strait of Hormuz reopens, easing one advantage the US held during the conflict as a net petroleum exporter.
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