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Asian chipmakers now dominate emerging market indices, erasing diversification benefits
๐Ÿ“ˆ Business

Asian chipmakers now dominate emerging market indices, erasing diversification benefits

Emerging market indices, once seen as a way to diversify away from expensive Wall Street valuations, are increasingly dominated by Asian semiconductor companies riding the AI investment boom. Baskets designed to offer exposure to more than twenty economies have effectively become a bet on a single technology sector. As a result, investors are losing the geographic diversification these indices were supposed to provide.

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