Photographer: Qilai Shen/Bloomberg

Tech Expands Emerging Markets Grip, Accounting for 43% of Gains

  • Makes up 29% of MSCI EM index, doubling share in 5 years
  • Giants such as Alibaba, Tencent, Samsung drive stocks higher

As if we needed more proof that technology has taken over the world, the industry is accounting for 43 percent of the gains in the emerging-market equity benchmark this year -- up from 33 percent in 2016.

Four stocks -- Alibaba, Tencent, Samsung Electronics and Taiwan Semiconductor --- account for almost a third of the 34 percent gain in the MSCI Emerging Markets Index. Alibaba has more than doubled in price. TSMC, the laggard, is up only 38 percent. All four are based in Asia.

By weighting, technology makes up 29 percent of the index, more than double the share they had back in 2012, when the leaders were finance companies and lenders such as China Construction Bank, Industrial & Commercial Bank of China and Itau Unibanco Holdings.

In the U.S. the tech giants are known by the shorthand FANG (Facebook, Amazon, Netflix, Google). So the only thing the emerging market leaders need is a catchy nickname. STAT, anyone?

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