The BREE ETF is an actively managed ETF that invests in stocks of companies economically tied to emerging market countries. Rather than mechanically replicating a particular index, it uses a management concept that combines a fundamental perspective, which examines companies' financial conditions and the market environment, with quantitative analysis.

It suits investors who want to participate in the growth potential of emerging market stocks and can tolerate the high volatility that comes with country-level policies and currency fluctuations.

It is an ETF run with an active (actively managed) approach by MFS.

The BREE ETF builds its portfolio from emerging market related stocks by combining fundamental analysis with the judgment of quantitative models. Because it seeks to evaluate each company's financial condition and industry environment rather than simply follow the market as a whole, the way it selects holdings and sets weights may differ in nature from index-tracking products.

• A combination of fundamental research and quantitative analysis
• Active management focused on selecting emerging market companies

Assets under management (AUM) stand at $25.4M, and the total expense ratio is 0.44% per year.

For newly listed exchange-traded funds, trading liquidity and bid-ask spreads can vary with market conditions. Even for long-term holders, it is sensible to check the actual trading environment and the real burden of the total expense ratio together.

The performance of emerging market stocks is shaped by global economic conditions, commodity demand, major currencies and country-level policy changes, so its direction can shift frequently. The performance of the BREE ETF should likewise be understood as being influenced at once by individual stock selection and by regional market trends.

Emerging market fund flows can react sensitively to changes in risk appetite, dollar movements and regional growth expectations. With active products, the manager's judgment can affect results as well as the overall rise and fall of the market, so it is also worth examining how they differ in character from index-based products covering the same regions.

This product seeks differentiation through emerging market company selection, but investors should also consider the volatility that stems from countries, currencies and management decisions.

The SEEM ETF shown in the table is a similar product offering access to emerging market stocks, but differences in management style and cost structure should be checked. The FEMR ETF pursues an enhanced emerging market strategy and the ROAM ETF takes a multi-factor approach, so their selection criteria may differ from those of the BREE ETF. The FFEM ETF and FCA ETF also differ in the nature of their emerging market and China related exposure, respectively, so it is advisable to compare country concentration and management philosophy. Information on additional listed products beyond the comparison candidates provided is limited.

When reviewing the BREE ETF, it is important to look separately at the characteristics of emerging markets as an asset class and the structure of active management. Even in a rising market, stock selection results can differ, and country-level institutions and currency conditions can have an additional effect on performance measured in Korean won.

Emerging market stocks can experience large price swings due to policy changes, currency fluctuations, deteriorating liquidity conditions and geopolitical variables. Because active management can produce results that differ from the market, it is hard to assert that simple regional diversification alone reduces risk.

The BREE ETF can be considered by investors who want a management approach combining company analysis and quantitative research, rather than broad index exposure to emerging markets. However, distribution history, the trading environment, country-level volatility and management judgment risk should be reviewed alongside your own investment objectives and holding period.