๐ Schroders: Emerging Markets Tech โ Bubble or Structural Growth Cycle?
Schroders' emerging market equities team notes that AI-linked tech now drives most EM index performance, with IT above 40% of the MSCI EM benchmark and the top three stocks (TSMC, Samsung, SK Hynix) over 30% of the index; market leadership has become increasingly narrow.
Why it matters: Investors tracking EM benchmarks are increasingly exposed to a concentrated AI-cycle risk, which strengthens the case for active sub-industry and stock selection over broad regional or passive allocation.
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