Is EMKT a good ETF?
EMKT is the VanEck MSCI Multifactor Emerging Markets Equity ETF from VanEck. It tracks the MSCI Emerging Markets Diversified Multiple-Factor Index. We classify it under EM and Factor. With about $731 million in assets it is a solidly established fund. Listed on the ASX since 2018-11-08 (almost 8 years ago).
On a total-return basis, EMKT has delivered 15.5% a year over 5 years (ranked 12th of 188 ETFs we track), 24.31% a year over 3 years (ranked 15th of 226 ETFs we track), and 35.63% a year over 1 year (ranked 23rd of 308 ETFs we track). Its strongest showing is over 5 years, where it sits in the top 6% of all ETFs we track.
The management fee of 0.69% is on the higher side. For comparison, similar ETFs average around 0.39%. If cost is your priority, BEMG (0.35%), AVTE (0.45%), and VGE (0.48%) cover similar ground for less. It pays a high 13.49% yield — generous income, but check it isn't a sign of a narrow or higher-risk portfolio. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 5 years its volatility has been elevated (annualised standard deviation around 15.2%), meaning noticeably larger swings than the broad market. Its 5-year Sharpe ratio of 0.82 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is moderate at about 30% a year — a fair chunk of the portfolio is bought and sold each year, so expect a little more in the way of realised capital gains and trading costs than a plain index fund.
Strengths
- Top-6% returns over 5 years (12th of 188 ETFs we track).
- High 13.49% income yield — good for investors who want regular cash flow.
Things to watch
- Pricier than similar ETFs, which average around 0.39%.
- Cheaper alternatives exist: BEMG, AVTE, and VGE.
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
What EMKT's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Emerging markets — developing economies such as China, India, Brazil and Taiwan. High growth potential with materially higher volatility, currency and political risk.
- Market regime
- Often trades at cheaper valuations than developed markets and performs well in global risk-on phases and when the US dollar is weak. Can endure long stretches of underperformance.
- In a portfolio
- A satellite growth allocation for patient investors with a long horizon and tolerance for big swings.
Tilts toward academically-backed drivers of return — value, quality, momentum, size or low volatility — aiming to beat plain market-cap weighting over a full cycle.
- Market regime
- Any single factor can underperform the broad market for years before rewarding patient holders. Multi-factor funds smooth this out somewhat.
- In a portfolio
- A long-term tilt that demands discipline: the edge only shows up if you hold through the inevitable lean stretches.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.