Global ETF diversification is now a risk management imperative, says Dina Ting
Ting makes that case in a new Franklin Templeton research piece co-authored with Marcus Weyerer, CFA, senior ETF investment strategist at Franklin Templeton ETFs EMEA. The paper argues that the AI investment story which drove much of the US market’s outperformance in recent years, is now expanding geographically in ways advisors cannot afford to ignore.
AI’s next phase is about infrastructure
The shift Ting describes is structural and investor attention, she argues, has moved away from the companies building AI applications toward the businesses supplying the physical and technological infrastructure that makes those applications possible; a so-called picks-and-shovels opportunity playing out across multiple countries.
“Taiwan remains indispensable for advanced semiconductor manufacturing, Japan is well-positioned through industrial automation, test equipment and precision manufacturing, and South Korea plays a critical role in AI memory and hardware,” Ting said. “Beyond technology, we’re also watching industrials, power infrastructure and advanced manufacturing — because AI can’t scale without the physical infrastructure ecosystem supporting it.”
For financial advisors weighing how to position client portfolios, Ting offers a practical framework for distinguishing durable AI-driven earnings from speculative excess.
“We’re looking for tangible revenue growth, rising enterprise adoption and continued investment in the infrastructure that enables AI — and not just excitement around new applications,” she said. “When companies are generating cash flows alongside innovation and building a significant moat, that’s a healthier foundation than simply trading on future possibilities.”
