An Emerging Markets Knockout

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As the World Cup enters the knockout stage, every match has the potential to produce an unexpected outcome. Amid the excitement on the pitch, many may have missed a similar shake-up among global market heavyweights. Following a strong second quarter, Taiwan and South Korea have surged 104% and 181% over the past year,¹ respectively, vaulting into the ranks of the world's 10 largest stock markets.

Taiwan is now the world's third-largest stock market, overtaking the UK, while South Korea has climbed to sixth place. Much of this performance has been driven by semiconductor leaders such as TSMC, Samsung, and SK Hynix. Their remarkable returns are a reminder that strong outcomes can emerge unexpectedly anywhere in the world.

Diversified portfolios that include crowd favorites and underdogs can allow investors to participate in good fortune wherever and whenever it appears. By contrast, investors who pick and choose might find themselves caught offsides when the big moment arrives.

_{1 - Based on the MSCI Taiwan IMI (net div.) and MSCI Korea IMI (net div.) for the one-year period ending June 30, 2026. In USD.}

_Disclosures

_{Past performance is not a guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio. This information is intended for educational purposes. Named securities may be held in accounts managed by Adaptive Wealth Engineering.}

_{All expressions of opinion are subject to change. This information is not meant to constitute investment advice, a recommendation of any securities product or investment strategy (including account type), or an offer of any services or products for sale, nor is it intended to provide a sufficient basis on which to make an investment decision. Investors should consult with a financial professional regarding their individual circumstances before making investment decisions.}

_{Risks include loss of principal and fluctuating value. Diversification neither assures a profit nor guarantees against loss in a declining market. Risks include loss of principal and fluctuating value. Diversification neither assures a profit nor guarantees against loss in a declining market.}

_{Adaptive Wealth Engineering is an investment advisor registered with the Securities and Exchange Commission.}

_{Investment products: • Not FDIC Insured • Not Bank Guaranteed • May Lose Value}

_{Adaptive Wealth Engineering does not have any bank affiliates.}