This active ETF invests in emerging market companies that the management team, based on its own analysis, considers undervalued and high in growth potential. It diversifies across several emerging countries while picking individual stocks actively.

It suits investors who want to invest in emerging markets through active stock selection and are willing to accept emerging market volatility and currency risk.

It is an actively managed ETF run by Pacific North of South.

Based on the management team's analysis, the fund actively selects undervalued emerging market companies with strong growth potential and spreads its investments across several emerging countries. Instead of simply tracking an index, it actively adjusts stock and country weightings, taking an active approach that seeks excess returns in emerging markets.

• Active selection of emerging market stocks
• Stock picking based on undervaluation and growth potential

Assets under management (AUM) stand at $442.9M, and the total expense ratio (Expense Ratio) is an annual 0.75%.

Compared with simple market-cap-weighted emerging market ETFs, the main points of comparison are active stock selection and country weighting adjustments.

Emerging market stocks react sensitively to global risk appetite, the strength of the dollar, and economic conditions in each country. Active selection strategies tend to follow a different path from market-cap indexes depending on the management team's stock and country choices. Volatility is relatively high given the nature of emerging markets.

Fund flows into actively managed emerging market products diverge depending on global risk appetite, currency trends, and management performance. When interest in emerging market investing rises, money can also move into this group of related products. It is also worth watching how performance varies with economic conditions and currency variables in each country.

Active stock selection and emerging market exposure are its strengths, while emerging market risk, currency exposure, and reliance on management are considerations.

For simpler emerging market exposure, direct substitutes include VWO and IEMG, and for different emerging market exposure, products such as EEM are also worth comparing. The three products shown in the table, FEOE, FWD, and INFL, follow international equities, innovative companies, and inflation beneficiary strategies respectively. Their investment targets differ from active emerging market selection, so they serve mainly as reference points. What sets this ETF apart is that its management team actively selects emerging market stocks.

Here are the points to review before investing in GEME. Active stock selection and emerging market exposure are appealing, but emerging market risk, currency, and reliance on management should be checked in advance. It is also a good idea to compare it with simple emerging market index products.

Political and policy risks in each country, currency fluctuations, and the results of the management team's stock and country choices are the main variables for long-term performance. Active strategies can also see their results diverge from market-cap indexes at different times. Losses can occur during periods of broad emerging market weakness.

It is a suitable candidate for investors who want to invest in emerging markets through active stock selection. If cost and simple emerging market exposure come first, products such as VWO and IEMG are worth considering, and if you trust active selection, it is advisable to compare this product alongside them before choosing.