Emerging markets (EM) are being written in code, powered by elite semiconductors, and accelerated by the most aggressive AI buildout in history.

Key takeaways:

• EM has firmly pivoted away from being a "commodities" play, with AI and the technology sector now dominating some of the larger EM countries, like China, Taiwan, and South Korea.
• Why talk with clients about EM stocks now? Value—EM stocks remain heavily discounted relative to U.S. stocks, based on price-to-earnings ratios for the MSCI Emerging Markets Index versus the S&P 500^® index.¹
• EM stocks are powerful potential growth engines for your clients’ portfolios. But they’ve historically been quite volatile and now mimic the U.S. tech sector, so consider these as a “satellite” asset-allocation opportunity.