It is an actively managed ETF that invests in the long-term structural shift of middle-class growth and expanding domestic consumption in emerging markets. It selectively holds companies expected to benefit from consumption growth and uses the MSCI Emerging Markets Index as its performance benchmark.

It is well suited for investors who want long-term exposure to the emerging-market domestic consumption growth theme and who prefer active, selective security picking.

It is an actively managed ETF run by Global X.

It is an active strategy in which the portfolio managers selectively hold companies expected to benefit from the structural growth of emerging-market domestic consumption. Rather than replicating the MSCI Emerging Markets Index outright, it picks and chooses holdings around the consumption growth theme, with constituents adjusted at the managers' discretion.

• Focused on the consumption growth theme rather than broad emerging-market core exposure
• Active security selection rather than index replication

Assets under management (AUM) stand at $53.4M and the total expense ratio is 0.65% annually.

Compared with broad emerging-market core ETFs, its holdings are concentrated on the consumption theme, so its performance may move differently from that of the benchmark.

Return volatility reflects the overall risk-on flows across emerging-market equities as well as the FX and rate environment, and due to the nature of the consumption theme, it tends to respond sensitively to expectations around domestic economic activity.

Sustained demand for the long-term theme of emerging-market consumption growth underpins fund flows, but during phases of risk aversion, flows can be disrupted alongside emerging-market assets more broadly.

Its strength is concentrated exposure to the emerging-market domestic consumption growth theme, while its weaknesses are performance deviation versus the benchmark from active management and the volatility characteristic of emerging markets.

The IEMG, VWO, and EEM shown in the table are core ETFs that hold the broad emerging-market universe through index exposure. IEMG and VWO are low-cost core products, whereas EEM carries a somewhat higher expense ratio, and all differ in nature from the consumption-theme-focused EMC. As alternatives, investors can also look at EMM, a broad emerging-market active product from the same manager, ECON, which also covers the emerging-market consumption theme, and SPEM, worth considering when seeking low-cost core exposure.

These are the points to review before investing in EMC. Because it is an active ETF concentrated on the consumption theme, it is advisable to fully understand in advance the management style, the degree of theme concentration, and the FX and political risks unique to emerging markets.

The FX and political risks unique to emerging markets, along with the concentration on the consumption theme, are the main drivers of short-term volatility, and given the nature of active management, performance can diverge meaningfully from the benchmark.

It is a suitable choice for investors seeking active exposure to the emerging-market domestic consumption growth theme. For those who prioritize broad, low-cost core exposure, it is advisable to also compare index-based products such as IEMG and SPEM.