Tim Urbanowicz, chief investment strategist at Innovator from Goldman Sachs Asset Management, has advised investors to consider opportunities in emerging markets for potential gains in artificial intelligence (AI). Speaking on CNBC’s "ETF Edge," Urbanowicz referred to these markets as integral to the upcoming AI expansion. He highlighted Taiwan and South Korea as particularly promising, asserting that these nations are significant players in the AI sector and that their valuations have not appreciated as considerably as those in the United States.
According to Urbanowicz, the iShares MSCI Emerging Markets ETF has risen 26% year to date. He pointed out that the iShares MSCI Taiwan ETF has surged nearly 67%, while the iShares MSCI South Korea ETF has seen a remarkable 109% increase in the same period. Both ETFs feature prominent AI-related companies, especially in the memory chip sector.
Urbanowicz suggested that investors could look into the Goldman Sachs ActiveBeta Emerging Markets Equity ETF to tap into AI-driven growth. Despite his enthusiasm for emerging markets, he maintains optimism about AI prospects within the U.S. as well, stating that the U.S. remains well-positioned for success in this area.
Why this story matters:
- Emerging markets could present significant investment opportunities in AI, potentially diversifying portfolios.
Key takeaway:
- Urbanowicz highlights Taiwan and South Korea as key players in the AI trade with substantial growth potential.
Opposing viewpoint:
- Some investors may argue that the U.S. market still offers stronger opportunities and stability compared to emerging markets.
