Tim Urbanowicz, chief investment strategist at Innovator from Goldman Sachs Asset Management, is urging investors to look beyond their backyards to the emerging markets.
“[It’s] where a lot of the big money can be made on the AI trade,” he told CNBC’s “ETF Edge” this week – calling it “the next big wave.”
Urbanowicz is particularly bullish on Taiwan and South Korea when it comes to the AI build-out. He notes they are a big part of the broad iShares MSCI Emerging Markets ETF, which is up 26% as of Thursday’s close.
“These are major players in the AI trade and the AI space where valuations really haven’t gone up as much as they have in the U.S.” he said. “There’s still a lot of runway in our view to provide outsized gains with this AI trade.”
The iShares MSCI Taiwan ETF is up almost 67% so far this year while the iShares MSCI South Korea ETF market has risen 109%, as of Thursday’s U.S. close. Both Taiwan- and South Korea-focused ETFs hold several AI memory-related chip names.
In a special note to CNBC, Urbanowicz highlighted the actively managed Goldman Sachs ActiveBeta Emerging Markets Equity ETF as a way for investors to gain exposure to potential AI-driven gains in emerging markets.
Getting exposure to AI abroad
“We think the U.S. is still positioned for success,” he said.
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