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Understanding Emerging Markets Equity Concentration

What are implications of market concentration in developed vs. emerging markets?

Emerging markets have seen a sharp rise in market concentration, primarily driven by the technology sector. This trend is particularly evident in economies like China, India, Taiwan, Korea, and Brazil, which exhibit significant concentration in market indexes.

Selecting the right fund and comparing the success rates of active versus passive strategies is key to mitigating risks associated with a concentrated portfolio. Our analysis reveals that only 35% of active funds have historically outperformed their passive counterparts.

Download the report to discover opportunities that can help position your clients’ portfolios for long-term success.

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What's Inside

  • Analyse the top five index stocks and leading country markets by weight.
  • Evaluate the success of active funds in emerging markets.
  • Recommend strategies for investors to effectively manage portfolio concentration.

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