China is SPEM’s largest geographic exposure at 32.75%. Taiwan and India combine for almost 26% of the fund’s weight.

While the emerging markets rebound is prompting some speculation of a crowded trade, institutional positioning in the asset class remains light, which could portend further upside if those money managers increase exposure to developing economies.

“Finally, institutional positioning in EM is now so light (even compared to historically underweight institutional allocations) that we would expect to see some reversion in due course, especially if EM growth picks up versus developed markets,” according to State Street.

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