Yahoo Finance analysis points out that the prospectus for Vanguard's $122 billion FTSE Emerging Markets ETF (VWO) discloses that the fund may transition from a diversified to a non-diversified fund due to market fluctuations or index rebalancing, without a shareholder vote. As of June 30, 2026, TSMC's weighting in VWO has reached 16.3%, significantly exceeding the 5% single issuer limit stipulated by the 1940 Act, indicating that this risk scenario has already materialized. Stefan Sommerville, an investment expert at Orbis, commented that passive investors buying emerging market exposure are effectively making a concentrated bet on the AI investment cycle. Furthermore, Vanguard's over $1 trillion S&P 500 ETF (VOO) has similar disclosures, with JPMorgan Chase analysts noting that the top ten stocks in the S&P 500 index now account for 40.8% of the total market capitalization, higher than the 26.6% during the dot-com bubble of the late 1990s. This concentration amplifies the downside impact when leading stocks decline.