Many "global" portfolios are really US-heavy.
Even diversified investors often end up with significant exposure to American megacaps. The Magnificent 7 have driven much of the recent market returns, and US companies still dominate broad global indices.
But what if the next wave of AI and growth is broader?
Two themes suggest that the AI opportunity may not be confined to Silicon Valley: India's structural transformation and Asia's dominance in the semiconductor supply chain. For investors looking beyond the US, two ASX-listed ETFs offer targeted exposure to those trends.
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India's structural shift
India hasn't been the standout performer among emerging markets this year. In fact, its equity market has lagged broader emerging indices, reflecting a mix of cautious sentiment and concerns around valuations.
Yet beneath the surface, structural forces are building.
India remains one of the fastest-growing major economies in the world. Its young population, rising middle class and ongoing urbanisation create a long runway for domestic demand. At the same time, the government has been pursuing fiscal discipline while maintaining heavy capital expenditure in infrastructure, energy and manufacturing.
That combination matters. Infrastructure spending in transport, power and digital networks lays the groundwork for productivity gains over the next decade. Meanwhile, policy incentives are aimed at strengthening domestic manufacturing, including electronics and semiconductors.
There is also a clear AI angle emerging.
Global technology giants are committing capital to cloud and data centre expansion in India. What was once seen primarily as an outsourcing hub is increasingly being positioned as a regional AI infrastructure base. As hyperscaler spending flows into data centres, computing capacity and digital services, Indian corporates may benefit both directly and indirectly.
For investors, an India-focused ETF such as the Global X India Nifty 50 ETF (ASX: NDIA) provides exposure to 50 of India's largest listed companies. These include leaders in financials, energy, IT services and consumer sectors – businesses that stand to gain if India's domestic growth story continues to strengthen.
It's not a pure-play AI bet. Instead, it's a way to access a large, reform-driven economy that could become increasingly central to the global digital buildout.
Asia's AI supply chain advantage
While the US designs many of the world's most advanced AI chips, much of the physical manufacturing happens in Asia.
As American tech giants ramp up spending on data centres and AI infrastructure, demand is flowing through the semiconductor supply chain. That includes chip fabrication, advanced memory and specialist components – areas where Asian companies dominate.
Across Asia, several countries sit at the centre of the global technology supply chain.
Taiwan and South Korea are home to some of the world's most advanced semiconductor fabrication and memory manufacturing capabilities. These businesses produce the chips and components that power data centres, cloud computing and AI workloads. Meanwhile, parts of China and other Southeast Asian economies host major hardware producers, consumer technology leaders and digital platforms that support the broader ecosystem.
If AI-related data centre spending continues to rise, a meaningful share of that investment is likely to flow through companies based in these markets. An ETF such as the Betashares Asia Technology Tigers ETF (ASX: ASIA) provides diversified exposure across key technology-heavy markets including Taiwan, South Korea and China.
Rather than relying on a single company, investors gain access to a broad mix of semiconductor firms, hardware manufacturers and digital platform businesses that are deeply embedded in the region's innovation engine.
For investors who feel heavily exposed to US tech, this can provide a complementary angle – capturing the "picks and shovels" of AI beyond American borders.
The Foolish takeaway
Every investment theme comes with risks. Emerging markets can be volatile. Currency movements, geopolitical tensions and regulatory shifts can affect returns. And questions remain about the long-term sustainability of AI-related capital expenditure.
However, AI is increasingly a global infrastructure story, not just a US equity story.
India is investing in the foundations of its next growth phase. Asia is manufacturing the hardware that powers the AI revolution.
For investors building long-term portfolios, broadening exposure beyond the US – through targeted ASX ETFs – could mean participating in a much wider slice of the next decade's growth.
