An Emerging Markets Knockout
Taiwan and South Korea surged into the world's largest stock markets, proving diversification helps investors capture unexpected winners worldwide.
As the World Cup enters the knockout stage, every match has the potential to produce an unexpected outcome. Amid the excitement on the pitch, many may have missed a similar shake-up among global market heavyweights. Following a strong second quarter, Taiwan and South Korea have surged 104% and 181% over the past year,1 respectively, vaulting into the ranks of the world’s 10 largest stock markets.
Taiwan is now the world’s third-largest stock market, overtaking the UK, while South Korea has climbed to sixth place. Much of this performance has been driven by semiconductor leaders such as TSMC, Samsung, and SK Hynix. Their remarkable returns are a reminder that strong outcomes can emerge unexpectedly anywhere in the world.
Diversified portfolios that include crowd favorites and underdogs can allow investors to participate in good fortune wherever and whenever it appears. By contrast, investors who pick and choose might find themselves caught offside when the big moment arrives.
EXHIBIT 1
Country Market Cap Ranking
June 2025–June 2026
Footnotes
1. Based on the MSCI Taiwan IMI (net div.) and MSCI Korea IMI (net div.) for the one-year period ending June 30, 2026. In USD.
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RISKS
Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful.
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