AI investors are pointing toward emerging markets for better value and a bigger pool of options.
The reverse follows a slump that wiped out more than $1 trillion in market capitalization.
Investors are paying close attention to the contrasting trajectories of two of Asia's greatest powers.
Fiera Capital has handed holders of its EM Select Fund a 29% return in the past 12 months.
Concerns about China and geopolitical tensions should again weigh on emerging markets, analysts said.
Stocks in developing nations have added $1.1 trillion in the past two weeks.
Short positions on the Vanguard FTSE Emerging Markets Exchange Traded Fund have dwindled to 0.01%.
Israel's retaliation against attacks by Hamas has sparked fears of a broader conflict between the U.S. and Iran.
Investors are turning away from broad-brush emerging-market funds that track benchmark indexes.
Sentiment was kinder toward emerging markets less directly exposed to China's economic travails.