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Key TakeawaysThanks to huge rallies in semiconductor stocks, emerging market indexes are seeing significant concentration in a few names.The current concentration exceeds that of previous episodes, which were followed by large selloffs.Some emerging market managers are looking to diversify away from the largest-weighted stocks.The big risks investors usually associate with emerging markets are defaults, inflation, and currency runs. Now comes concentration risk, wherein a handful of stocks account for outsized portions of fund portfolios and returns. Concentration in a relatively narrow number of stocks has been in the spotlight for several years in the US market. But in emerging markets, massive gains in key semiconductor stocks have altered the landscape significantly over the past year. The top three stocks in the Morningstar Emerging Markets Target Market Exposure Index —Taiwan Semiconductor Manufacturing TSM, Samsung Electronics 005930, and SK Hynix 000660—now make up 26.7% of the benchmark. Over the past year, these stocks, which are booming thanks to the artificial intelligence buildout, have been responsible for roughly 57% of the index’s 30.3% return. When Samsung and SK Hynix turned and fell sharply starting in late June, they were responsible for a similar chunk of the index’s 6.8% loss.The net result is that investors seeking exposure to the growing economies of the developing world are instead seeing returns driven by the same AI theme dominating the US stock market. “Investors may think they are getting broad exposure to the developing world, but in practice, they are getting a very large allocation to Taiwan, China, South Korea, and India, with a huge semiconductor engine inside it,” writes Paul Choi, a non-US equity investment consultant in Callan’s global manager research group. “That is a double layer of concentration.”The Big Stock Gains Feeding EM ConcentrationDriving this extreme concentration are the huge gains posted by AI-related stocks. Over the past year, TSMC is up 96%, Samsung is up 258%, and SK Hynix is up 456%. Meanwhile, stocks that had been leaders in the past are now laggards. That includes Chinese tech and entertainment company Tencent, which accounts for 2.96% of the Emerging Markets Index, down from an average 3.87% weighting over the past five years. Five years ago, “the AI capex names of today sat toward the bottom … with returns driven primarily by consumer electronics such as PCs, smartphones, gaming, which is a far more cyclical driver,” says Morningstar manager research analyst Michael Born.China has also broadly lagged since the pandemic, as its growth cooled amid a real estate crisis and deleveraging. And while China is a major player in AI, many of those stocks are listed in the A-share market, which offers limited access to foreigners.Prior Rallies and SelloffsThis isn’t the first episode of significant concentration in this sphere. In a report published in June, Neuberger Berman emerging markets portfolio managers Vera German and Juan Torres looked back at similar circumstances over the last 20 years. There was the 2010-11 commodity supercycle, when the top 10 was dominated by resources, the 2014-15 China cycle, which included Tencent, and the 2020-21 China tech boom, dominated by Alibaba BABA and Tencent. However, the current emerging market concentration is more extreme than any of those previous episodes. During the China tech boom, the top 10 holdings of the MSCI Emerging Markets Index accounted for a 28% weighting. As of early June 2026, the top 10 stocks have a 39% weighting in that index.The Neuberger managers note that significant selloffs followed these episodes. In 2014-15, for example, the index would later lose 35% of its value. “Being part of the crowd may offer temporary comfort,” they wrote. “But history’s lesson is not simply that extreme concentration ends, it is that it can end sharply.” To be prepared, investors would “need to be positioned away from the largest index components. In the same way as they have led the gains this year, they could lead the losses.”Managing EM Concentration RiskTypically, concentration makes it harder for active managers to outperform as weightings grow. In June, 31% of US large-cap blend funds outperformed their asset-weighted passive peers in the Morningstar Active/Passive Barometer. Similarly, 33% of global large-blend funds outperformed.That doesn’t hold for emerging markets funds, where 70% beat their passive peers. That’s because portfolio managers have used other strategies, including an average 7% underweight to China. And while active managers often trim positions as they rise, in this case, many have leaned into the momentum of AI names in emerging markets. “Since the earnings and order book momentum behind these names still looks intact, managers have largely been happy to ride the wave,” says Morningstar’s Born.Still, some managers are wary. “It’s time to dampen concentration risk,” says Mark Headley, executive chairman of the investment firm Matthews Asia. “It doesn’t mean you want to sell off your TSMC or run away from names in AI tech innovation, but to look at areas that have been neglected. Chinese financials are extremely cheap.”Headley adds that the correction in June and July “has generally encouraged us that the markets are starting to broaden out.” In Korea, for example, “we are seeing local investors are starting to invest in smaller-cap names.” One Matthews favorite is Cosmax 044820, a small-cap cosmetics producer. Headley is “starting to nibble in ASEAN and taking a very hard look at India.” Meanwhile, he’s still committed to the tech sector and “some names that we believe fell too much in the recent selloff.”The Neuberger managers are also looking at parts of the emerging markets universe that have been left behind. “Virtually all the market’s attention is centered around one sector, one trade, two countries, and a handful of companies,” they said in response to an email question. “As such, we believe the opportunity set is currently extremely rich: from consumer discretionary in Mexico, to special situations in the mid-cap space in South Korea, distressed mining in Brazil, small caps across ASEAN, and China.”

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Happy Friday. Stock futures were rising Friday following a sharp sell-off, as Treasury’s efforts to bolster bond buybacks failed to reassure investors.

U.S. Treasury Secretary Scott Bessent said the Treasury had doubled the size of its long-term debt buybacks from $2 billion to at least $4 billion per operation. He also discussed currency interventions involving the yen and peso and new fiscal consolidation plans.

Bessent told CNBC on Thursday that the accelerated buyback of government debt could be higher than the announced $4 billion.

“We’re going to increase the size of the buyback,” he said. “I would note that it could be more than the 4 billion per issue.”

Bessent declined to attach a figure, saying it will depend on market conditions.

“We’ll see what the conditions are, and you know we will analyze them,” he said. “All we’re trying to do is get people to focus on the fundamentals and not trade the headlines during a quiet period in a thin market.”

Stocks closed lower Thursday, pulled down by rising Treasury yields, surging crude oil prices and a steep drop in retail bellwether Walmart, which missed expectations for comparable U.S. sales.

“Markets are ending the week on a softer tone after the relative calm of early August was disrupted by renewed pressure in global bond markets, another rise in oil prices and growing uncertainty around the Federal Reserve’s next move,” said Daniela Hathorn, senior market analyst at Capital.com.

“U.S. equities have pulled back from record highs, with the Nasdaq among the weaker performers, as higher long-term borrowing costs once again challenge elevated valuations.”

The Toronto Blue Jays have now seen a very quick cut lead to a reunion with the St. Louis Cardinals.

Real Madrid manager Jose Mourinho made a confession about new FC Barcelona signing Rodri and confirmed two injuries in his first press conference ahead of Espanyol.

“You’ll have to trust me when I tell you that she had love, support and opportunities.”

Hedge funds entered the second quarter all-in on the AI trade, but have begun to diversify their portfolios lately. They’re dipping into healthcare, energy and financials.

The proposal addresses most of the biggest problems with current MLS regular season and postseason competition. Here are five reasons it should succeed.

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Why we love this deal

Accessories don’t have to be large to make a statement. In fact, some of the daintier, smaller rings, necklaces, and bracelets shine far more than a giant jewel or gemstone. Not only that, but these smaller selections are often more affordable and fit into our budget so that we don’t have to scrimp and save in other areas of our lives. Jewelry certainly isn’t an essential, but it is a fun luxury that we think everyone should get to enjoy, and with Macy’s sales prices on products like the Macy’s Diamond Accent Heart x Link Bracelet, even the budget-conscious shopper can find something sparkly to add to your wardrobe. 

The diamond and gold Macy’s exclusive is a bit more funky compared to your standard tennis bracelet but still subdue enough to pair with a whole host of outfits. Even better? The $100 bracelet is on sale for 60% off, meaning you can grab one of your own for just $40 right now. 

Macy’s Diamond Accent Heart x Link Bracelet, $40 (was $100) at Macy’s

Courtesy of Macy’s

Shop at Macy’s

Why do shoppers love it?

There are a few fun things that really make this bracelet stand out on the market compared to similar styles. For one, unlike a standard tennis bracelet which has a symmetrical band of diamonds running completely around the entirety of the bracelet, this piece incorporates diamonds and criss-crossing metal links, resulting in a fun pattern almost resembling “X”‘s and “O’s.” 

The bracelet has diamond-accented hearts with this criss-cross stitch made from the fine silver plate that encompasses most of the bracelet. The repeating pattern then ends with an adjustable bolo clasp that’s a bit more unique than the standard hook and loop or lobster claw. It adds an additional bit of flair and it’s convenient to customize the fit of the bracelet to be exactly as you want it. Wear it tightly for a more secure fit or leave it a bit looser for a more relaxed fit. 

Unlike sterling silver, which is almost identical in look, the fine silver plating used in this bracelet’s design refers to the 99.9% pure silver covering over top of a base metal core, typically something like brass or copper. It allows for a sturdy piece of jewelry that doesn’t tarnish or deteriorate in quality over time. 

Related: Macy’s is selling a $250 diamond bolo bracelet that comes in 3 colors for 65% off

The bracelet is adjustable in length between 6 to 10 inches. The fine silver plating comes in silver, gold, and rose gold so you can choose the look and style that best suits your wardrobe and your preferences. 

Details to know

Length: The bracelet is adjustable, ranging from 6 inches to 10 inches long.

Material: Silver plate. 

Color: Three.

Clasp: Bolo. 

Although a delicate and lightweight bracelet, the design of it is quite sturdy. It doesn’t feel like it’ll fall off or be too fragile. Shoppers really love the adjustable bolo clasp for both the look of it and the convenience with customizing the bracelet’s fit to the wrist. It has a quality shine that lasts a while, even with lots of wear, and a lot of shoppers love to gift it to friends and family. 

Shop more deals 

Macy’s Diamond Accent Heart Tag Chain Bracelet, $60 (was $100) at Macy’s

Arabella Cubic Zirconia Graduated 17-Inch Necklace, $304 (was $850) at Macy’s

Wrapped Diamond Bolo Bracelet, $304 (was $800) at Macy’s

Enjoy a delicate touch of style with the Macy’s Diamond Accent Heart x Link Bracelet. With such a unique and fun design, and for such a convenient price at only $40, it’s certainly at the top of our shopping list. 

Most 401(k) participants log in, check their balance, and close the tab. They never click the planning links sitting right next to that number.

T. Rowe Price’s newest research suggests that habit could be costly. The firm’s 2026 Reference Point report covered more than two million participants across 712 plans.

The report found that workers who use free advice or planning tools save at a rate 29% higher than non-users. Those same users hold twice the average account balance.

Yet only 13.8% of participants ever touch those resources. That leaves roughly six out of seven workers with free help they have never accessed.

T. Rowe Price’s 2026 data uncovers a stark 401(k) divide

T. Rowe Price manages $1.80 trillion in client assets, and the firm released its annual Reference Point report on Feb. 11, 2026. 

The data cover plans on its full-service recordkeeping platform. Tool users saved at a rate 29% higher than non-users, according to the report, though T. Rowe Price did not disclose the underlying percentages for each group. 

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“This year’s data shines a light on how personalized guidance and advice are pivotal for retirement readiness,” said Francisco Negrón, head of Retirement Plan Services at T. Rowe Price. 

“As the economic environment continues to challenge retirement savers, equipping them with financial tools and support is more important than ever,” Negrón added.

The selection bias problem behind the 401(k) data

The 29% savings gap and doubled balances reflect a correlation within T. Rowe Price’s own data. The report does not claim the tools caused those outcomes, though its framing implies it.

People who seek out planning tools tend to be more financially engaged and predisposed to save, and researchers call this selection bias.

T. Rowe Price’s release does not control income, age, or plan tenure, and the “twice the average balance” also relies on averages rather than medians, which high-balance outliers can skew upward.

Use of 401(k) planning tools may correlate with higher savings, but selection bias makes it difficult to prove that the tools actually lead to better retirement outcomes.Daniel de la Hoz / Getty Images

Vanguard and Morningstar research backs the case for 401(k) guidance

Independent research fills part of the gap that T. Rowe Price’s data leaves open, and Vanguard has published its Advisor’s Alpha research since 2001 and updated it in 2025.

Quality financial advice can add about 3% in net value annually through behavioral coaching, tax-efficient strategies, and smarter withdrawal sequencing, according to Vanguard’s Advisor’s Alpha framework.

Behavioral coaching is the largest component, worth up to 150 basis points per year. 

Lauren Valente, Vanguard’s managing director of Workplace Solutions, said decades of evidence prove automatic plan features significantly boost retirement savings participation.

More than 25 years of data and insights make it clear [that] strong default contribution options and automatic features have made saving for retirement more accessible and effective for more Americans than ever before.

Stopping investors from panic-selling during downturns adds more value than any portfolio technique, Vanguard noted. Morningstar researchers David Blanchett and Paul Kaplan reached a similar conclusion in their 2013 “Gamma” study. 

Smarter withdrawal strategies, tax-efficient allocation, and annuity decisions can boost certainty-equivalent retirement income by 22.6%, which the authors estimated has the same impact as a 1.59% annual return increase.

Both firms sell advisory services, giving each a commercial interest; their methods also measure full-service relationships, not self-service 401(k) tools.

How much of the free 401(k) help most workers leave on the table

Most major recordkeepers offer participants planning resources at no additional cost. These include retirement readiness calculators, savings rate optimizers, and Roth comparison features.

Many plans also include phone-based guidance with a licensed professional, covered through plan fees rather than charged to the individual, but these tools go largely unused. 

Only 13.8% of participants currently engage with the advice, education, or tools available through their workplace retirement site, T. Rowe Price’s 2026 benchmarking report found, even though users save 29% more and have twice the average account balance.

Cerulli Associates found that 71% of pre-retirees had not sought advice or planning help from their 401(k) provider in the past year, and 45% had not used available financial wellness tools. 

The firm recommended that recordkeepers improve awareness of existing tools and collaborate with advisors to present a streamlined advice offering.

What the data mean for your retirement savings rate

Vanguard’s 2026 How America Saves report recommends a total savings rate of 12% to 15%, including employer contributions. 

The average total rate hit a record 12.1%, but many workers remain below that target, the firm reported. Most plan portals include a retirement readiness projection that estimates in a few minutes where a participant stands against Vanguard’s 12% to 15% target. 

T. Rowe Price’s data shows 99% of auto-enrolled participants either maintain their employer-selected default rate or increase it, a sign that plan design is doing much of the heavy lifting, but also that only a minority actively push their rate higher.

The evidence does not guarantee that opening a calculator will double your balance, and it does suggest that the 13.8% who engage beyond enrollment tend to land in stronger positions.

T. Rowe Price’s 2026 data shows a strong link between using free workplace tools and better 401(k) outcomes. 

Related: What to Know about Including Annuities in Your 401k

Real Madrid head coach Jose Mourinho said that he wants his players to “die” for the club in his first press conference ahead of a season debut against Espanyol.