Key Highlights
Annual dividend yield of 13.08% with quarterly distributions of 4.640 per unit
Diversified portfolio of 241 emerging market companies across 24 countries
Multifactor approach emphasizing value, momentum, quality, and low size factors
Management fee of 0.69% for factor-based emerging market exposure
EMKT generates an Annual Dividend Yield of 13.08% with distributions of 4.640 per unit. The distribution history demonstrates 0.900 distributed in July 2025, 0.650 in July 2024, 1.130 in July 2023, and 0.800 in July 2022. The dividend yield reflects the income generation from emerging market companies, which typically provide higher dividend yields compared to developed market equivalents.
The fund size of AUD 753.76 million supports a diversified portfolio of emerging market holdings. With approximately 21.25 million units outstanding, the fund maintains adequate trading Volume and Liquidity for investors.
EMKT applies a multifactor Investment approach selecting companies from the MSCI Emerging Markets index based on four fundamental factors: Value, Momentum, Quality, and Low Size. This methodology targets companies demonstrating value characteristics through favorable price-to-earnings and price-to-book ratios relative to peers. Momentum indicators reflect positive price trends and Earnings growth momentum. Quality attributes including profitability metrics and financial stability indicators support selection. Low size exposures emphasize smaller-capitalization companies within the emerging markets universe with potentially higher growth characteristics.
This multifactor approach aims to maximize Factor exposure while maintaining a risk profile similar to the broader MSCI Emerging Markets Index, providing systematic exposure to factors believed to drive returns across emerging markets.
The portfolio maintains substantial exposure to Asian emerging markets. South Korea comprises 25.88% of the portfolio, Taiwan represents 24.60%, China accounts for 19.97%, and India comprises 9.59%. Additional exposure includes Brazil (4.31%), Saudi Arabia (2.72%), South Africa (2.09%), and Thailand (1.34%). This concentration in Asian emerging markets reflects the size and development of Equity markets in the region.
Technology represents 43.94% of the portfolio, substantially exceeding the broader emerging markets category allocation of 36.80%. Financial Services comprises 13.55%, Consumer Cyclical accounts for 10.45%, and Basic Materials represents 7.37%. This sector weighting reflects the concentration of high-growth technology companies in emerging markets, particularly in Taiwan and South Korea.
The portfolio comprises 241 companies, providing substantial Diversification across emerging market issuers. The top 10 holdings represent 42.80% of portfolio value, with Taiwan Semiconductor Manufacturing (13.35%), Samsung Electronics (9.19%), and SK Hynix (7.62%) representing the largest positions.
The fund exhibits a Beta of 1.28 and Standard Deviation of 26.38, indicating moderate to high Volatility relative to broader market benchmarks. These risk metrics reflect the characteristics of emerging market equities, which experience significant fluctuations based on economic conditions, currency movements, and geopolitical developments in emerging market countries.
The management fee of 0.69% reflects the costs associated with factor-based selection and monitoring. This fee structure positions the fund competitively within the emerging markets ETF category.
Conclusion
The VanEck MSCI Multifactor EM Markets Equity ETF provides investors with exposure to 241 emerging market companies using a systematic multifactor selection approach. The 13.08% annual dividend yield reflects the higher income generation typical of emerging market equities. The multifactor methodology targets companies demonstrating value, momentum, quality, and size characteristics within the emerging markets universe. With a management fee of 0.69%, EMKT offers cost-efficient emerging market exposure enhanced through factor-based selection. Investors should recognize the substantial volatility characteristic of emerging market investments and the risks associated with developing economy exposure, including currency fluctuations, political changes, and regulatory developments.