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An Emerging Markets Knockout

| August 6, 2026

Since the knockout stage of the 2026 FIFA World Cup, every match had 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 93% and 166% 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 favourites 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 offside when the big moment arrives.

EXHIBIT 1

Country Market Cap Ranking

June 2025–June 2026

 

Line chart showing changes in rankings of world’s 10 largest stock markets, highlighted by Taiwan going from 10th in June 2025 to 3rd in June 2026 and Korea going from 10th in January 2026 to 6th in June 2026, with final rankings of US 1st, Japan 2nd, Taiwan, United Kingdom 4th, Canada 5th, Korea, China 7th, France 8th, Switzerland 9th, and Germany 10th.
Source: Dimensional. Market cap ranking within MSCI All Country World IMI Index. Indices are not available for direct investment. Holdings are subject to change. MSCI data © MSCI 2026, all rights reserved.

Footnote

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

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Risks

Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful.

This material is issued by DFA Australia Limited (AFS License No. 238093, ABN 46 065 937 671). This material is provided for information only. No account has been taken of the objectives, financial situation or needs of any particular person. Accordingly, to the extent this material constitutes general financial product advice, investors should, before acting on the advice, consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation and needs. Investors should also consider the Product Disclosure Statement (PDS) and the target market determination (TMD) that have been made for each financial product either issued or distributed by DFA Australia Limited prior to acquiring or continuing to hold any investment. Go to dimensional.com/funds to access a copy of the PDS or the relevant TMD. Any opinions expressed in this material reflect our judgement at the date of publication and are subject to change.