What Is the EMGF ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
Combines multiple investment factors to invest strategically in high-quality emerging market companies, aiming for results that differ from a standard index.
SubscribeWhat Is This ETF?
The fund selects stocks and sets weights by considering five core factors together, including value, quality, and momentum. It aims to manage the volatility of emerging markets while concentrating on high-quality stocks that meet specific criteria, seeking returns above the market.
Moving beyond simple index tracking, it suits savvy investors who expect excess returns from emerging markets through a proven investment strategy.
It is a passively managed (index-tracking) ETF launched by BlackRock in 2015.
How Does It Invest?
| Item | Details |
|---|---|
| Tracking Index | STOXX Emerging Markets Equity Factor Index |
| Management Style | Passive (multi-factor strategy) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Semiannual |
| Expense Ratio | 0.26% |
The fund calculates factor scores for large- and mid-cap emerging market stocks and builds a structured portfolio from them. It spreads risk so that the portfolio is not overly concentrated in any single country or sector, while selecting holdings that combine the characteristics of value stocks and quality stocks.
- Systematic stock selection through a proven multi-factor model
- Competitive fees compared with standard emerging market index ETFs
Size and Costs
Assets under management (AUM) stand at $1.8B, and the expense ratio is 0.26% per year.
Compared with FNDE, FRDM, and the others shown in the table, its management fee is somewhat lower, and it is a product that concentrates BlackRock's professional factor-modeling expertise.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeHelped by an economic recovery across emerging markets and rising demand for AI-related hardware, the factor strategy, which carries heavy weights in major semiconductor companies, has been delivering positive results.
Interest in smart beta assets, which add strategic elements to plain index exposure, has been growing, and inflows remain steady. When market volatility rises, the defensive strength of the low-volatility factor also draws attention.
Strengths and Weaknesses
Its strength is a balanced portfolio built by combining factors, but it may lag temporarily when a particular factor is out of sync with market conditions.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
XSOE, PXH, and GEM shown in the table are emerging market comparison candidates, each with a different strategy (such as excluding state-owned enterprises or using fundamental analysis). If you simply want broad exposure to the entire emerging market, EEM, VWO, and IEMG are the representative alternatives, and if you value dividend income, it is worth considering EDIV or DVYE as well. When you want to track the performance of the overall market rather than a specific strategy, a low-fee index fund can be more efficient.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 FNDE | Schwab Fundamental Emerging Markets Equity ETF | $40.63 | +0.1% | $10.0B | 0.39% | 3.66% | +10.1% |
 FRDM | Freedom 100 Emerging Markets ETF | $61.95 | -0.1% | $3.2B | 0.49% | 1.9% | +28.3% |
 PXH | Invesco RAFI Emerging Markets ETF | $28.12 | +0.2% | $1.9B | 0.47% | 4.13% | +8.7% |
 XSOE | WisdomTree Emerging Markets ex-State-Owned Enterprises Fund | $42.75 | +0.2% | $1.9B | 0.32% | 1.82% | +8.7% |
 GEM | Goldman Sachs ActiveBeta Emerging Markets Equity ETF | $46.56 | -0.0% | $1.7B | 0.35% | 2.06% | +10.5% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| TSM | Taiwan Semiconductor Manufacturing ADR | 0.32% | $398.63 | -1.9% | $2.07T | 25.7 | 1.05% |
| SKHY | SK Hynix Inc ADR | 0.10% | $147.71 | -1.0% | $1.08T | 9.6 | 1.52% |
| BABA | Alibaba Group Holding Ltd ADR | 0.07% | $101.50 | +3.5% | $252.5B | 23.9 | 1.1% |
| PDD | PDD Holdings Inc ADR | 0.01% | $81.68 | +3.9% | $116.3B | 9.1 | - |
| VALE | Vale SA ADR | 0.01% | $11.34 | -0.4% | $46.2B | 81.0 | 8.67% |
Investor Checkpoints
These are the points to review before investing in the iShares MSCI Emerging Markets Factor ETF (EMGF). You should fully understand the complexity of the strategy and the characteristics of emerging markets.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Fee Level | Cost competitiveness within the smart beta product group | Reasonable |
| 📊 Factor Exposure | Changes in the weights of key factors such as value and momentum | Regular rebalancing |
| 🌍 Country Weights | Concentration in major emerging markets such as China and Taiwan | Diversification maintained |
| 💱 Currency Fluctuations | Impact of declines in emerging market currencies | No currency hedging |
Given the nature of emerging stock markets, geopolitical risk and currency depreciation can be major variables for returns. Keep in mind that a multi-factor strategy does not always guarantee excess returns.
It is a core asset suited to investors who want a more sophisticated investment strategy in emerging markets. It works well as part of a portfolio aiming to capture factor returns from a long-term perspective.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
Today's 5 AI picks, all free