The nature of emerging markets has been changing, and Information Technology (IT) has become the most dominant sector in the MSCI Emerging Markets Index.

In this respect, the recent announcement by MSCI and S&P of a review of the Global Industry Classification Standard (GICS) will shake things up. A key outcome of the review will be a significant reduction of the IT weighting in the Index.

Despite the lower IT weighting, however, technologically innovative companies should continue to have a dominant role in emerging markets. 

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