GEMs stock positioning: The Trident gap

研报英文原文证据摘录

GEMs stock positioning: The Trident gap

24 June 2026

GEMs stock positioning EquityEmergingStrategyMarkets

The Trident gap

◆ Positioning in EM tech is a big discussion point and there’s Alastair Pinder, CFA

significant divergences across Global and GEMs funds Head EM and Global Equity Strategist HSBC Securities (USA) Inc.

alastair.pinder@us.hsbc.com

◆ Global funds have increased their allocation to EM, but this +1 212 525 5972

has been through TSMC, Samsung Electronics and SK Hynix Pankaj Agarwala*, CFA

EM and Global Equity Strategist

HSBC Securities and Capital Markets (India) Private

◆ GEMs funds are looking for alternatives to EM’s tech trident, Limited

pankajagarwala@hsbc.co.in

focusing on commodity and AI supply chain names +91 0 80 30013716

Our positioning report gives a comprehensive overview of how both active and * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

passive funds are positioned across EM stocks. Our proprietary data covers c300

active GEMs funds (combined AUM of USD755bn), 359 global and global ex-US

equity funds (USD1.8trn AUM), and 150 regional funds (USD82bn AUM). Our ETF

database tracks the size and intensity of passive flows across c9,000 EM stocks.

Global funds – EM tech or nothing

The active underweight of Global funds in EM has closed considerably over the last 18

months and now stands at -120bps (53pctl), the highest level since 2020. But this rotation

is incredibly narrow and just reflects a rotation of global funds into EM’s tech trident –

TSMC, SK Hynix and Samsung Electronics. Strip these names out and, in fact, global

funds underweight in EM stands at nearly -350bps, ranking in nearly the bottom 10ptl

since 2013.