What Is the EMCS ETF? A Complete Guide to Returns, Fees, Holdings, and Alternative ETFs
An emerging-market ESG ETF specialized in responding to climate change. It invests in leading companies with strong carbon efficiency and seeks long-term growth.
SubscribeWhat Is This ETF?
The fund tracks the MSCI Global Climate 500 Emerging Markets Selection index and holds high-quality emerging-market stocks with low carbon emission intensity that have set science-based reduction targets (SBTi). The portfolio is built around companies that take environmental responsibility seriously.
It suits ESG-minded investors who want exposure to the growth potential of emerging markets while managing climate risk and taking part in the transition to a greener economy.
Launched by Xtrackers in 2021, it is a passively managed (index-tracking) ETF.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | MSCI Global Climate 500 EM Selection |
| Management Style | Passive (tracks a climate index) |
| Rebalancing Frequency | Semiannual |
| Dividend Frequency | Semiannual |
| Total Expense Ratio | 0.15% |
The strategy excludes companies with high carbon intensity and increases the weights of companies that are meeting low-emission targets. Going beyond simply excluding industries, it selects companies with superior climate readiness within each sector.
- Preference for companies aligned with science-based reduction targets (SBTi)
- Low fee level among emerging-market ESG products
Size and Costs
Assets under management (AUM) stand at $1.0B, and the total expense ratio is 0.15% per year.
Compared with general ESG ETFs such as ESGE shown in the table, it has a structure more specifically focused on the themes of climate change and carbon reduction.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeAmid the introduction of global carbon border taxes and tightening environmental regulations in emerging markets, the value of low-carbon leaders is gaining attention. Its performance tends to move closely with major emerging-market technology stocks in China, Taiwan, and elsewhere.
As awareness of the climate crisis spreads, institutional investors' ESG capital has been flowing in steadily. The fund is effectively absorbing investment demand from those who want to make the shift to a low-carbon economy a long-term growth driver.
Strengths and Weaknesses
The fund lets you manage climate risk proactively while investing in high-quality emerging-market stocks, but you should be mindful of its concentration in certain regions and sectors.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
ESGD and VSGX shown in the table are ESG products focused on developed markets, while EMCS specializes in emerging markets. A direct alternative is ESGE, a general-purpose emerging-market ESG ETF, and if you want emerging-market exposure excluding China, EMXF is a useful option. XSOE, which excludes state-owned enterprises, and FRDM, which weights holdings by economic freedom, are also worth considering as comparison candidates.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 ESGD | iShares Trust iShares ESG Aware MSCI EAFE ETF | $101.97 | -0.3% | $11.8B | 0.20% | 3.36% | +7.9% |
 VSGX | Vanguard ESG International Stock ETF | $78.24 | -0.2% | $6.5B | 0.10% | 3.1% | +10.8% |
 ESGE | iShare Inc iShares ESG Aware MSCI EM ETF | $50.39 | +0.5% | $6.3B | 0.25% | 2.25% | +13.7% |
 KLMN | Invesco MSCI North America Climate ETF | $31.20 | -0.4% | $2.4B | 0.09% | 1.16% | +13.1% |
 KLMT | Invesco MSCI Global Climate 500 ETF | $34.38 | -0.4% | $1.6B | 0.10% | 1.82% | +12.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| TSM | Taiwan Semiconductor Manufacturing ADR | 0.57% | $418.51 | +1.5% | $2.17T | 26.9 | 0.99% |
| SKHY | SK Hynix Inc ADR | 0.17% | $137.02 | +4.0% | $998.7B | 8.9 | 0.38% |
| BABA | Alibaba Group Holding Ltd ADR | 0.10% | $99.64 | -2.1% | $247.9B | 23.5 | 1.12% |
 PASW | Ping An Biomedical Co Ltd | 0.02% | $4.76 | -11.2% | $14.9M | - | - |
| SCCO | Southern Copper Corp | 0.02% | $185.01 | +0.8% | $156.2B | 24.6 | 2.24% |
Investor Checkpoints
EMCS is a specialized investment vehicle that combines emerging-market growth drivers with the defining trend of climate change. Before investing, please review the following key points carefully.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Fee Level | Confirm cost competitiveness within the emerging-market ESG category | Low |
| 🌡️ Climate Strategy | Understand how carbon emission reduction and SBTi are applied | Needs review |
| 🌏 Regional Concentration | Check the high exposure to Taiwanese and Chinese markets | Concentrated |
| 📈 Performance Comparison | Check the return gap versus a general emerging-market index | Needs review |
Because holding weights can differ significantly from traditional emerging-market indexes, an approach based on the long-term view of the low-carbon economic transition is needed rather than a focus on short-term performance. Investors must also be able to tolerate the volatility that is typical of emerging markets.
It is a useful product for investors who want to bet on a sustainable future while expecting excess returns from emerging markets. It is recommended for portfolios seeking both solid ESG principles and a low fee.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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