Investors have been right to harbour concerns about market concentration this year, what with returns in the US becoming increasingly reliant on the fortunes of the 'Magnificent Seven'.
But this isn't purely a US phenomenon: Taiwan Semiconductor Manufacturing (TW:2330) makes up more than 9 per cent of the MSCI Emerging Markets index after a strong 2024. That makes it an increasingly chunky component of emerging market and Asian tracker funds, and of the active funds trying to beat or at least keep up with the market.
TSMC has not been immune to the tech sell-off of recent weeks but it's still up by nearly 60 per cent over the first seven months of 2024 and some of the top-performing funds have certainly ridden those coattails.