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Emerging markets ETF GEM tops category with 22.1% YTD return
The Goldman Sachs ActiveBeta Emerging Markets Equity ETF charges a 35 bps fee and uses a multi-factor screen for momentum, value, quality, and low volatility.
ETF Trends highlights concentration risk among U.S. investors even as broader markets diversify, arguing that international exposure still matters. The outlet points to a shift in attention from ex-U.S. equities toward emerging markets as a longer term potential diversifier.
One example is the Goldman Sachs ActiveBeta Emerging Markets Equity ETF, ticker GEM, which charges 35 bps to track a proprietary emerging markets index. ETF Trends says the fund employs a multi-factor approach seeking equities with healthy momentum and good value, along with high quality and low volatility.
ETF Trends also cites ETF Database data showing GEM returned 22.1% year to date, outperforming the Emerging Markets Equities category average since January 1. The outlet adds that GEM has beaten the category average over one-, three-, and five-year periods.
On the outlook, ETF Trends links the emerging markets case to potential changes in energy conditions, noting that global energy prices can weigh on the region but could improve if tensions near the Strait of Hormuz resolve and energy costs fall. The story also points to emerging market economies such as India and Brazil as examples, and frames GEM’s multifactor approach as a strategy intended to deliver a durable, consistent portfolio role.