VanEck MSCI Multifactor Emerging Markets Equity ETF (EMKT) — Review & Analysis

EMKT is VanEck's multifactor emerging markets ETF — applying value, momentum, low size and quality screens to the MSCI EM universe. AUM is $518.01 million as at May 2026 with a 0.69% p.a. management fee — matching IEM but offering meaningfully different exposure. Compare EMKT across the EM cohort on our emerging markets ETF page.

The multifactor screen is the central differentiator. Cap-weighted EM ETFs like IEM and VGE are dominated by the largest names (TSMC, Tencent, Samsung, Alibaba) — meaning roughly 30% of the portfolio sits in the top 10 stocks. EMKT's multifactor methodology dilutes that concentration, tilting toward smaller, cheaper and higher-quality names that the screens identify. The result is a more diversified portfolio with materially different sector and country weights.

EMKT's factor approach has academic backing — value, momentum, quality and size are well-documented sources of long-term return premium across global markets. EM specifically has historically shown stronger factor premiums than developed markets, partly because of less efficient research coverage in smaller EM names. The trade-off is tracking error against the standard MSCI EM benchmark — EMKT can underperform when mega-caps lead and outperform when factor names rotate higher.

EMKT is unhedged for currency. The fund competes most directly with BEMG (Betashares MSCI Emerging Markets Complex, 0.35%) and the cheaper cap-weighted VGE — investors are paying a 21bp premium over BEMG for the multifactor overlay. Our active vs passive ETFs guide covers when factor-based approaches have outperformed cap-weighted alternatives.