Homrich & Berg flags rising concentration risk as EM rally hinges on Taiwan, Korea chip stocks
EEM•Country concentration hit records
Country concentration hit records; Taiwan is 23% of the index, South Korea 16%, close to 40% combined market cap.
EM rally driven by a narrow group
Homrich & Berg flagged a sharp 2026 rally in emerging-market equities, up more than 24% in H1, driven mainly by a small group.
Market breadth weakened as the index rose; 44% of constituents are up YTD, while the median stock is down 3.3%.
Valuations still favor strategic allocations
Valuations still favor strategic allocations; EM trades at 13.9x forward P/E versus 16.8x for developed markets.
Technology and semiconductors dominate recent gains
Technology was the only EM sector up in the past three months, gaining 14.8%, raising vulnerability to a semiconductor downturn.
