Country: China, India, Saudi Arabia, and Taiwan remain the key underweight country positions among active EM investors. India, in particular, has seen a dramatic shift from a strong overweight to a significant underweight over the past four years.

Sector: Over 60% of active EM fund exposure is concentrated in Technology, Financials, and Consumer Discretionary, while around a quarter of funds are avoiding Energy, Real Estate, and Utilities entirely

Stock:: TSMC, Samsung Electronics, and Tencent dominate as the most widely held stocks among active EM funds, with no EMEA stocks making the top 20. Despite TSMC’s record-high fund weights, active managers are selling into strength, resulting in a switch from net overweight to sizeable average underweight. Tencent and Xiaomi remain consensus underweights, while MercadoLibre and AIA Group stand out as the top overweight stocks.