Emerging-Market ETFs Offer New AI Growth Opportunities

The next wave of AI‑related gains may be originating far from the United States.

Tim Urbanowicz, chief investment strategist at Innovator from Goldman Sachs Asset Management, advises investors to broaden their focus to emerging markets.

“That’s where a lot of the big money can be made on the AI trade,” he told CNBC’s “ETF Edge,” describing it as “the next big wave.”

Urbanowicz is especially bullish on Taiwan and South Korea, noting their significant presence in the iShares MSCI Emerging Markets ETF, which was up 26% at Thursday’s close.

“These economies are major players in the AI space, and their valuations haven’t risen as sharply as in the U.S.,” he said. “There’s still ample runway for outsized gains in this AI trade.”

The iShares MSCI Taiwan ETF has risen nearly 67% year‑to‑date, while the iShares MSCI South Korea ETF has jumped 109% as of Thursday’s U.S. close. Both funds include several AI‑focused memory‑chip manufacturers.

In a note to CNBC, Urbanowicz highlighted the actively managed Goldman Sachs ActiveBeta Emerging Markets Equity ETF as a vehicle for investors seeking AI‑driven exposure in emerging markets.

Getting exposure to AI abroad

Urbanowicz added that he is not overlooking the domestic market.

“We still believe the U.S. is well‑positioned for success,” he said.

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