EMKT
VanEck MSCI Multifactor Emerging Markets Equity ETF
EMKT
VanEck MSCI Multifactor Emerging Markets Equity ETF
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NAV$25.31
as at 03-Dec-24 -
Total Net Assets$171.22M
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Dividend Frequency1 each year
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Management fee (p.a.)0.69%
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Number of securities232
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Inception Date10-Apr-18
Overview
Fund Description
Our emerging markets ETF, EMKT invests in a diversified portfolio of large and mid-cap stocks from emerging markets countries. EMKT aims to provide investment returns, before fees and other costs, which track the performance of the Index.
Key benefits
Exposure to the world's fastest developing markets
Emerging markets offer investors access to developing nations including China, South Korea and India.
An optimal approach to emerging markets
A portfolio that provides access to economies experiencing rapid change by investing in companies included on the basis of Value, Low Size, Momentum and Quality factors.
Outperformance potential
Taking a diversified approach across factors has been proven to produce outperformance over the long-term compared to a benchmark market capitalisation approach.
Index Key points
Underlying Index
MSCI Emerging Markets Multi-Factor Select Index (AUD)
The Index comprises
The Index is based on the MSCI Emerging Markets Index (“the Parent Index”) which includes large and mid-cap stocks diversified across emerging markets countries. The Parent Index covers approximately 85% of the Free Float Market Capitalisation in each emerging markets country. The Index aims to maximise exposure to securities in the Parent Index which exhibit enhanced performance characteristics based on four style factors - Value, Momentum, Low Size and Quality -- while maintaining a market risk profile similar to that of the underlying Parent Index.
Summary of Index methodology
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Value:
Companies are scored based on two main indicators of good value which are equally-weighted, namely:- the security's forward price relative to estimated future earnings; and
- the share price relative to the book value of the company.
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Momentum:
Companies are given a higher momentum score if their share price has outperformed the market in the last 2 years and has increased over the last 6 months and last 12 months. -
Low Size:
Companies have a higher 'low size' score if they are smaller, i.e. have lower market capitalisation than other companies. -
Quality:
Companies are scored based on five main indicators of high quality, which are equally-weighted, namely:- high return on equity;
- low debt to equity;
- low year on year earnings variability;
- earnings quality; and
- investment quality.
The constituents of the Index are selected from the Parent Index using MSCI's 'Barra® Global Equity Multi-factor Model' and 'Barra® Optimizer Model' (Barra Models) to maximise the exposure to the four targeted style factors while maintaining a market risk profile similar to that of the Parent Index.
MSCI's Barra Models are subject to certain risk diversification constraints, for example, minimum and maximum constituent and sector weights relative to the Parent Index are applied. As a result the Index will comprise a smaller number of securities with different weightings compared to the Parent Index and will, therefore, have a different overall performance and risk profile to the Parent Index. In addition, the Barra Models ensure that the exposure to other factors that are present in the Parent Index (e.g. volatility, growth and liquidity) are restricted in the Index. The Barra Models also limit turnover in the Index to 20% at each rebalance. These diversification constraints of the Index relative to the Parent Index assist to some extent in limiting the divergence of the Index from the Parent Index.
Index provider
MSCI Inc. MSCI is not a related entity of VanEck Investments Limited.
EMKT is indexed to a MSCI index. EMKT is not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to EMKT or the MSCI Index. The PDS contains a more detailed description of the limited relationship MSCI has with VanEck and EMKT.
Performance
Holdings & allocations
Dividends
Election of Dividend Reinvestment Plan (DRP)
You can elect DRP by logging into Link’s Investor Centre (https://investorcentre.linkmarketservices.com.au/Login). Once you are logged in, please proceed to the “Payments and Tax” tab and select “Reinvestment Update”.