This actively managed ETF does not track a specific index. Instead, AllianceBernstein analysts directly identify and invest in emerging market companies. It builds a concentrated portfolio of a small number of stocks by evaluating profitability outlook, valuation appeal, and fundamental and quantitative trends together.

It suits medium- to long-term investors who want to invest in emerging markets with the goal of outperforming passive indexes.

It is an actively managed ETF that AllianceBernstein launched in 2024.

The portfolio is built mainly from shares of companies economically tied to emerging markets. By combining fundamental research with quantitative analysis, the fund selects companies with solid profitability outlooks and reasonable valuations, and it concentrates weight on high-conviction ideas through a limited number of holdings.

• Research-based active stock selection rather than a passive index
• An integrated approach combining fundamental and quantitative analysis

Assets under management (AUM) stand at $2.0B, and the expense ratio is 0.70% per year.

Because of its active management, fees tend to be higher than those of passive emerging market ETFs, but its core value lies in its ability to pursue returns above the index.

Emerging markets have gone through stretches of short-term volatility driven by a stronger dollar and the global interest rate environment, but they have also rebounded alongside recovering corporate earnings in major emerging economies such as China, India and Brazil. Because of its active management, the fund may follow a different performance path from the index.

As expectations of a weaker dollar have coincided with hopes for improved emerging market corporate earnings, fund inflows into emerging market equities overall have also been observed. Differentiated stock selection based on AllianceBernstein's research capabilities is the main factor behind the inflows.

Research-based active management is its strength, but higher fees than passive funds and the volatility typical of emerging markets are the main risk factors.

IEMG, VWO and EEM shown in the table are passive ETFs in the same emerging market equity category with relatively low fees, and they are alternatives for investors who want broad diversification. AVEM is Avantis's actively managed emerging market ETF; like EMOP, it uses a factor-based active approach, making it a natural comparison on fees. EMXC is an ETF focused on emerging markets excluding China, an option for investors who want to adjust their exposure to China. For investors who want to adjust China weighting more actively or focus on a specific emerging market theme, dividend-oriented emerging market ETFs such as GEM or DEM can also be compared.

Here are the points to review before investing in EMOP. As an actively managed ETF, it is important to understand in advance the differences in cost and performance versus passive funds, as well as risks specific to emerging markets.

Currency and political risks specific to emerging markets combine with the fee burden of active management to create a double layer of risk. Short-term volatility is large, and because of the concentrated portfolio, losses can widen if an issue arises in a particular country.

The fund suits investors who trust AllianceBernstein's research capabilities and seek excess returns in emerging markets. For those who prioritize costs, passive ETFs such as IEMG and VWO are options, and for those who want active emerging market exposure, EMOP or AVEM are the funds to compare.