Taiwan and South Korea ETFs Surpass China-Focused Funds as AI Chip Boom Reshapes Emerging Markets

According to Yahoo Finance, Taiwan and South Korea ETF assets officially surpassed China-focused funds as of June 28, signaling a major capital reallocation in emerging markets. Global investors are funneling funds into AI supply chains through Taiwan ETFs (buying TSMC) and South Korea ETFs (betting on Samsung and SK Hynix), directly linking emerging market investments to the global semiconductor cycle. Meanwhile, classification differences between iShares MSCI Emerging Markets ETF (EEM) and Vanguard FTSE Emerging Markets ETF (VWO)—the latter treating South Korea as a developed market—create a 5 percentage point variance in semiconductor exposure, making it critical for investors to scrutinize fund holdings.
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