Target AI and policy-led growth from US to emerging markets
State Street Investment Management's December 2025 outlook says consensus 2026 capital spending estimates for major hyperscalers have reached $519 billion, up from $314 billion.
Themes· Web page
What it says
Figures as stated by State Street Investment Management, Dec 3, 2025- State Street Investment Management says emerging market stocks trade at a 32% discount to developed peers on next-12-month price to earnings.State Street
- State Street Investment Management finds that since 1990, small caps have led large caps by an average of 6% in the year after a Fed rate cut, with a 72% hit rate.State Street
- State Street Investment Management says small-cap next-12-month P/E sits 36% below large caps, the widest valuation gap in 20 years.State Street
- State Street Investment Management reports analysts have raised 2026 earnings growth estimates for nearly 60% of emerging market countries since June.State Street
- State Street Investment Management cites consensus forecasts of 18% Industrials earnings growth in 2026, the third-highest of any sector.State Street
Related ETFs
The funds the paper names that ETFIQ coversXLCState Street Communication Services Select Sector SPDR ETF−5.4%XLUState Street Utilities Select Sector SPDR ETF−4.7%XLIState Street Industrial Select Sector SPDR ETF+9.9%
Figure: total return, 1 year, to Oct 21, 2026, from each fund’s page. All 415 thematic ETFs →
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What does the State Street Investment Management paper conclude?
State Street Investment Management's December 2025 outlook says consensus 2026 capital spending estimates for major hyperscalers have reached $519 billion, up from $314 billion. The paper’s own words are at the link above.
What is a thematic ETF?
A fund that holds companies tied to one theme, such as AI or defense, picked by an index or a manager rather than by size alone. More on this →
Where can I read “Target AI and policy-led growth from US to emerging markets”?
On State Street Investment Management’s own site. ETFIQ summarizes the paper and does not host it. State Street Investment Management’s page ↗
Cite this pageCitation, APA and Markdown
ETFIQ, Target AI and policy-led growth from US to emerging markets (State Street Investment Management), summary, as of Oct 21, 2026. https://etfiq.com/research/library/state-street-target-ai-and-policy-led-growth-from-us-to-emerging/
Summary by ETFIQ. ETFIQ is not affiliated with State Street Investment Management; logos identify the source.