Tim Urbanowicz, chief investment strategist at Innovator from Goldman Sachs Asset Management, told CNBC's ETF Edge this week that emerging markets represent the next big wave for AI investment gains. Urbanowicz specifically highlighted Taiwan and South Korea as major AI players where valuations have not increased as much as in the U.S. The recommendation comes as the iShares MSCI Emerging Markets ETF has risen 26% as of Thursday's close, with both Taiwan and South Korea holding significant positions in AI memory-related chip companies.
Taiwan and South Korea ETFs Post Triple-Digit Gains
The iShares MSCI Taiwan ETF is up almost 67% so far this year while the iShares MSCI South Korea ETF has risen 109%, as of Thursday's U.S. close. Urbanowicz noted that both Taiwan- and South Korea-focused ETFs hold several AI memory-related chip names. He stated that these markets are major players in the AI trade and AI space where valuations have not increased as much as in the U.S., adding that there is still a lot of runway to provide outsized gains with the AI trade.
Goldman Sachs Highlights Actively Managed Emerging Markets ETF
In a special note to CNBC, Urbanowicz highlighted the actively managed Goldman Sachs ActiveBeta Emerging Markets Equity ETF as a way for investors to gain exposure to potential AI-driven gains in emerging markets. The recommendation positions the ETF as a vehicle for accessing the AI build-out in Taiwan and South Korea through a diversified emerging markets approach.
Urbanowicz Maintains U.S. AI Trade Positioning
Urbanowicz stated that he is not abandoning the domestic AI trade, saying that the U.S. is still positioned for success. The comment indicates a dual-market approach rather than a complete shift away from U.S. AI investments.
FAQ
What emerging markets did Goldman Sachs identify for AI investment opportunities?
Tim Urbanowicz from Goldman Sachs Asset Management specifically identified Taiwan and South Korea as emerging markets with significant AI investment potential, noting they are major players in the AI space where valuations have not increased as much as in the U.S.
How have Taiwan and South Korea AI-related ETFs performed this year?
The iShares MSCI Taiwan ETF is up almost 67% so far this year, while the iShares MSCI South Korea ETF has risen 109%, as of Thursday's U.S. close. Both ETFs hold several AI memory-related chip names.
