abrdn Emerging Markets ex-China Fund targets growth in Taiwan, South Korea, and India with AI-driven tech exposure.

The abrdn Emerging Markets ex-China Fund (AEF) offers investors targeted exposure to high-growth emerging markets excluding China, focusing on Taiwan, South Korea, and India. It benefits from significant holdings in major semiconductor companies like TSM, Samsung, and SK hynix, capitalizing on the AI-driven semiconductor boom. While AEF provides a high distribution yield of 8.86%, its income is variable and mainly funded by capital gains, making it more suitable for reinvestment than stable income. The fund currently trades at a 6.6% discount to its net asset value, with a net expense ratio of 1.86% partially offset by fee waivers.