Content courtesy of Dimensional Fund Advisors. The author is Matt Lipps, CFA, Investment Strategist.
A quick personal note before I turn it over to Dimensional. In a previous life I spent years in the semiconductor business, and a lot of that time was on the ground in Taiwan and South Korea. I was even part of the team that helped Samsung stand up their first DRAM fab outside of Korea in Austin, Texas. So watching Taiwan and Korea climb into the ranks of the world’s largest stock markets, carried by the very chipmakers I used to work alongside, is something I find pretty remarkable. It’s also a nice illustration of the point Dimensional makes below: you never really know where the next winner comes from, which is exactly why you want to own all of them.
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.
Country Market Cap Ranking
June 2025 – June 2026
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.
Footnotes
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.
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 Dimensional.
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.
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.
Investment products: • Not FDIC Insured • Not Bank Guaranteed • May Lose Value
Dimensional Fund Advisors does not have any bank affiliates.
This article is for educational and informational purposes only and does not constitute investment, tax, or legal advice, nor a recommendation to buy or sell any security or to adopt any investment strategy. All investing involves risk, including the possible loss of principal, and past performance is not a guarantee of future results. Please consult a qualified professional regarding your individual circumstances before making any financial decisions.