MSCI ANNOUNCES 55 ADDITIONS AND 92 DELETIONS FROM THE MSCI ACWI INDEX, TRIGGERING POTENTIAL INDEX-FUND REBALANCING FLOWS. SANDISK, CARPENTER TECHNOLOGY AND ATI ARE THE THREE LARGEST WORLD INDEX ADDITIONS BY FULL MARKET CAP; ACWI IMI WILL SEE 184 ADDITIONS AND 279 DELETIONS. CHAROEN POKPHAND INDO IS SET TO EXIT THE MSCI INDONESIA INDEX, WHILE COCHLEAR AND SONIC HEALTHCARE WILL BE DELETED FROM THE MSCI AUSTRALIA INDEX.

$SIVE has just entered the MSCI Sweden Small Cap Index after the close on May 29 This forces a bunch of passive funds and ETFs to buy around $47M to replicate the index Additionally, on June 1st, it will be incorporated into the OMX Stockholm Benchmark Index Which would add another 15-20M$ in purchases And as if that weren't enough, the dual listing on the New York Nasdaq is making progress An institutional buying pressure of $62/67M is expected in the coming weeks, on a MC of only $2B $SIVE has a 17% short interest Very high borrowing costs (close to 40%) And some shorts are already suffering, like Qube Research, which lost about $30M All of this points to a possible short squeeze Especially since the float is relatively tight and strong passive buying is coming At the slightest catalyst seen on paper regarding revenue, it could trigger it Extremely bullish on $SIVE

Asian chip stocks are experiencing a historic run: The MSCI EM Semiconductors to Magnificent 7 ratio is up to a record ~205, more than doubling since the start of 2026. This comes as the Magnificent 7 has declined -7% year-to-date, while the MSCI EM Semiconductors index has rallied +91%. This has been primarily driven by South Korean chipmakers, SK Hynix and Samsung, which are up +348% and +199%, respectively, over this period. The outperformance accelerated this month, with the Magnificent 7 falling -14% so far in June. At the same time, SK Hynix and Samsung are up +25% and +13%, respectively. Asian chip stocks are leading the AI trade.

US technology stocks are driving historic market gains: The MSCI USA Momentum Factor ETF, $MTUM, has surged +38.2% year-to-date, more than 4 times the S&P 500’s equal-weighted index gain of +9.2%. The fund’s top holdings include Micron, $MU, Intel, $INTC, AMD, $AMD, and Broadcom, $AVGO. As a result, the $MTUM to S&P 500 equal-weighted index ratio has risen to a record ~172. This ratio has surged +75.0% since early 2023, as momentum stocks have materially outperformed the average stock. This metric also now stands 14.7% above the 2020 pandemic recovery peak. Meanwhile, the MSCI US Momentum Index to MSCI US Index ratio has surged +24% over the last quarter, the largest quarterly outperformance on record, surpassing the 2000 Dot-Com bubble high of +21%. The momentum trade is leaving the rest of the market behind.

Emerging markets are seeing historic investment demand: Assets under management (AUM) in the MSCI emerging markets ETF, $IEMG, are up to a record $160 billion. And, the assets of the FTSE emerging markets ETF, $VWO, are up to a record $120 billion. Over the last 12 months, $IEMG assets have nearly doubled while $VWO assets have risen nearly +50%. This comes as $IEMG has rallied +39% over this period while $VWO has returned +23%. Furthermore, $IEMG attracted +$22 billion in inflows over the last 12 months, more than double the inflows into $VWO. The difference between the two funds comes down to South Korea, which is classified as "emerging" by MSCI and "developed" by FTSE Russell. South Korea's AI boom is reshaping emerging market investing.

What makes a market "emerging"? Median #inflation# across the MSCI EM Index was 2.5% in 2025, below many developed #economies#. The old categories are breaking down, writes Alejo Czerwonko.