Pros Recommend Emerging-Market ETFs as Alternative to Magnificent Seven
Investment professionals are increasingly recommending emerging-market exchange-traded funds (ETFs) as a strategic alternative to the US-based Magnificent Seven tech stocks. While companies like Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla drove significant gains in 2023, their performance has stalled in the current year, with the Bloomberg Magnificent 7 Total Return Index dropping 12.9% year-to-date through March 31. Microsoft has been particularly affected by this downturn. In contrast, funds with exposure to emerging markets such as South Korea, Taiwan, and Peru are gaining attention due to their strong ties to the ongoing artificial intelligence boom. Analysts suggest that these international investments could potentially rival the previous success of major US tech giants. The shift highlights a growing interest in diversifying portfolios beyond domestic technology leaders, leveraging global supply chains and semiconductor manufacturing hubs in Asia and resource-rich nations in Latin America. This trend reflects a broader market recalibration as investors seek new avenues for growth amidst the volatility of established tech heavyweights.
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Pros Recommend Emerging-Market ETFs as Alternative to Magnificent Seven
Investment professionals are increasingly recommending emerging-market exchange-traded funds (ETFs) as a strategic alternative to the US-based Magnificent Seven tech stocks. While companies like Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla drove significant gains in 2023, their performance has stalled in the current year, with the Bloomberg Magnificent 7 Total Return Index dropping 12.9% year-to-date through March 31. Microsoft has been particularly affected by this downturn. In contrast, funds with exposure to emerging markets such as South Korea, Taiwan, and Peru are gaining attention due to their strong ties to the ongoing artificial intelligence boom. Analysts suggest that these international investments could potentially rival the previous success of major US tech giants. The shift highlights a growing interest in diversifying portfolios beyond domestic technology leaders, leveraging global supply chains and semiconductor manufacturing hubs in Asia and resource-rich nations in Latin America. This trend reflects a broader market recalibration as investors seek new avenues for growth amidst the volatility of established tech heavyweights.
WSJ.com: Markets