An emerging markets Exchange Traded Fund (ETF) is an emerging markets fund you buy and sell on a stock exchange like a share, but which represents a group of underlying assets— usually either stocks, bonds or commodities—inside one security. There are two types of ETF – passive and active.
A passive emerging markets ETF is an exchange traded fund that gives you exposure to emerging market equities (or bonds) by tracking a predefined index, rather than trying to beat it. An active emerging markets ETF is an exchange traded fund that invests in emerging market equities (or bonds) but is managed like an active fund, not a pure index tracker. The key distinction is that a portfolio management team make discretionary decisions about what to own based on its emerging markets outlook, with the explicit goal of outperforming a benchmark such as the MSCI Emerging Markets index, rather than merely replicating it.
Active emerging markets ETFs can be fully discretionary or operate under rules based “enhanced” or factor models (e.g. tilting to value, quality or low volatility).
In terms of portfolio construction, active EM ETFs can:
Over or underweight countries, sectors and styles relative to the index (e.g. overweight India, underweight China; tilt toward quality growth or cheap cyclicals).
Own off benchmark stocks, including mid/small caps or companies from outside the EM index it benchmarks against.
Apply ESG or thematic overlays, for example avoiding certain industries or focusing on themes like innovation, decarbonization, or domestic demand.
Alongside its conventional emerging markets equities funds, Robeco manages an active ETF product, the Robeco 3D EM Equity ETF.
This is actively managed and applies the a “3D” investment strategy, which seeks to consider risk, return and sustainability in the fund’s portfolio.
It aims to outperform the its benchmark, the MSCI Emerging Markets index, by using an optimized quantitative process to reflect positive and negative views on eligible listed equity and equity-related securities and target returns in excess of the benchmark.
It also aims to achieve a more favorable sustainability profile and environmental footprint in comparison to the MSCI Emerging Markets Index while integrating sustainability risks in the investment process.
Chancen in Schwellenländern entdecken
Entdecken Sie Chancen in Schwellenländern, indem Sie auf die vielfältige und schnell wachsende Dynamik der Schwellenländer setzen.