Global Markets – Developed vs Emerging
2025–2026 Global Allocation View
Developed Markets (DM)
US, Europe, Japan, UK, Canada, Australia, etc.Stable growth, AI & semiconductor leadership, lower currency risk.
Emerging Markets (EM)
India, Korea, Taiwan, China, Brazil, Indonesia, etc.Higher GDP growth, cheaper valuations, export & commodity leverage.
Global All-World
ACWI / World + EM blendsSingle-ticket exposure to all major global markets and sectors.
| Bucket | Example Weight | Notes |
|---|---|---|
| Developed Markets | 50–60% | Core stability & AI/automation leadership |
| Emerging Markets | 20–30% | Growth & valuation upside |
| Global / All-World | 10–20% | Simple one-ticket diversification |
| Thematic Tilts | 0–15% | AI, nuclear, robotics, etc. |
Japan
Robotics, exporters, corporate reformStrong cycle in automation, machinery & exporters. Governance reforms improving shareholder returns.
Europe
Industrials, luxury, aerospaceAttractive valuations vs US, strong exporters in luxury, machinery, aerospace & green infrastructure.
Canada & Australia
Commodities, banks, dividendsResource-heavy markets with stable financial systems & yield exposure.
AI & Semiconductors
US, Korea, Japan, EuropeCore engine of global compute: GPUs, foundries, chip equipment & cloud platforms.
Robotics & Automation
Japan, Europe, USFactory, warehouse & industrial automation to offset labor shortages.
Nuclear & Clean Energy
Global DM utilities & minersBaseload clean power, SMR rollout & uranium supply tightness.
India
Domestic growth, banks, IT servicesFast GDP growth, expanding middle class, strong reforms & digital infrastructure.
South Korea & Taiwan
Semiconductors & electronicsCore of the global semiconductor & electronics supply chain.
Brazil & Commodities EM
Metals, agriculture, energyCommodity leverage & cyclical upside tied to global growth & inflation.
Export Tech & Manufacturing
Asia EMBeneficiaries of global AI hardware, electronics & cloud demand.
Consumer & Banks
India, SE Asia, LatAmCredit expansion & rising consumption as incomes rise.
Commodities & Materials
Brazil, South Africa, othersMetals, energy & agriculture tied to the global commodity cycle.
| ETF | Region | Type | Notes |
|---|---|---|---|
| ACWI | Global | All-World | Single-ticket global equity exposure |
| VEA | Developed ex-US | Broad DM | Europe, Japan, Canada, etc. |
| IEFA | Developed ex-US | Broad DM | MSCI EAFE tracker |
| EEM / VWO | Emerging | Broad EM | Diversified EM exposure |
| IEMG | Emerging | Broad EM (Core) | Lower-cost core EM holding |
| VT | Global | Total World | US + DM + EM in one fund |