AllianceBernstein's EMOP ETF Targets Growth In Emerging Markets

AllianceBernstein is making a deeper foray into the ETF business with the introduction of its newest product, the AB Emerging Markets Opportunities ETF EMOP, which seeks to exploit the long-term growth potential of emerging economies.

The launch of EMOP brings AllianceBernstein’s ETF lineup to 18.

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By mashing up bottom-up fundamentals and top-down consciousness, the portfolio managers of the fund handpick stocks possessing decent fundamentals and good valuations. The likes of Samsung, Alibaba Group Holding Ltd.- ADR BABA, Tencent Holdings ADR TCEHY, and Taiwan Semiconductor TSM are part of the heavyweight names, and represent a tilt towards tech-inspired growth stories.

The fund is unconstrained by market cap or sector, leaving it free to shift as opportunities (or threats) change, whether that entails doubling up on high-conviction wagers or navigating defensively in troubled areas.

At a 0.70% expense ratio, EMOP aims to become an investment vehicle for diversified equity exposure outside the U.S. The launch also marks AllianceBernstein’s wider strategic move into actively managed ETFs, a space that has gained favor amid an ever-more uncertain macro backdrop.

Noel Archard, global head of ETFs & Portfolio Solutions at AllianceBernstein, said EMOP is intended to give investors valuable access to these vibrant economies.

With global investors contemplating softening developed markets and geopolitical risk, active emerging market strategies such as EMOP can offer a tactical advantage, melding growth exposure to the flexibility to act when markets move.

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