If 2025 was a very kind year for emerging markets, what will 2026 hold? Many investors and market watchers are anticipating a strong repeat performance for ex-U.S. stocks. Finding the right vehicle therein, then, can offer a major coup for investors The EM equities ETF GEM, for example, has seen some strong performance to close 2025 and may be poised for a strong year in 2026, outperforming its EM peers.
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ETF Database data holds plenty more in depth data on the Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM). GEM charges a 35 basis point (bps) fee for an active approach to EM. The EM equities ETF, which celebrated a decade of operation this past September, sits at about $1.3 billion in AUM at press time.
The fund falls into the Emerging Markets Equities ETFs category in ETF Database data, and has outperformed the category average over multiple time periods. Specifically, GEM has returned 45.36% over the last one year period compared to 36.35% for the EM equities category average.
What’s more, the strategy has outperformed over one and three month periods, too. Even longer term, the active EM ETF has beaten its that category average over three and even five year periods.
Much of that outperformance owes to the fund’s multifactor approach. GEM tracks a multifactor index, the Stuttgart Goldman Sachs ActiveBeta EM Equity index, that provides a proprietary approach to emerging markets equities. The index looks for value, momentum, high quality, and low volatility stocks as part of its approach.
That approach could help the fund continue to outperform this year. If U.S. uncertainty continues to boost foreign equities, GEM could stand out. By emphasizing those factors, it could outdo market cap-weighted peer strategies. For those wanting to add some emerging markets, foreign equities exposure, the active EM ETF GEM may intrigue.
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