It is an actively managed ETF that invests in large- and mid-cap emerging-markets companies with strong resource efficiency, selected through a quantitative model. A significant portion of its net assets is allocated to emerging-markets resource-efficient companies.

It is well-suited for investors seeking diversified emerging-markets equity exposure while also incorporating resource efficiency and sustainability themes.

The ETF is managed by Harbor Capital using an active (discretionary) management approach.

Using Osmosis's quantitative framework, the fund screens emerging-markets companies that manage resources such as carbon emissions, water use, and waste efficiently relative to their economic output. Resource efficiency is treated as a signal linked to potential excess return, and holdings are actively constructed around it.

• Security selection driven by quantitative resource-efficiency signals
• Active management focused on emerging markets

Assets under management (AUM) stand at $148.7M, with a total expense ratio of 0.69% per year.

Because holdings are selected actively via a quantitative model, unlike passive emerging-markets ETFs, the fee burden is somewhat higher.

Return volatility tends to track broader emerging-markets equity trends alongside FX moves and global risk appetite. Given its active selection approach, its performance path can diverge from other emerging-markets ETFs in the same category.

Fund flows are influenced by investor interest in sustainability and resource-efficiency themes as well as demand for emerging-markets allocation. Volatility can widen as emerging-markets conditions shift.

The fund's strengths lie in its quantitative resource-efficiency screen and emerging-markets diversification, while its drawbacks include a relatively high expense ratio due to active management and the inherent risks of emerging markets.

Comparable options shown in the table include the fundamentally weighted FNDE, XSOE which excludes state-owned enterprises, and PXH which tilts toward emerging-markets value stocks via a fundamental index methodology — and these are typically distinguished by lower expense ratios. For broader emerging-markets exposure, low-cost core ETFs such as IEMG and VWO can serve as comparison points, while FRDM is also worth reviewing for investors seeking a focus on higher-freedom markets.

Here are points to review before investing in EFFE. As an active ETF targeting the emerging-markets resource-efficiency theme, it is worth examining costs, EM-specific risks, and the management approach in advance.

EM-specific FX, political, and liquidity risks, combined with performance variance from active management, are the main drivers of short-term volatility. During global risk-off phases, emerging-markets assets can weaken in tandem.

For investors looking to add a resource-efficiency theme to emerging-markets equities through an active approach, this is a viable option to evaluate. If low cost and simple diversification are the priority, low-cost passive emerging-markets ETFs are a better fit; if resource-efficiency screening is the priority, EFFE is the more suitable choice.