EMCH — Emerge EMPWR Sustainable Emerging Markets Equity ETF

EMCH Fund Overview

EMCH — Emerge EMPWR Sustainable Emerging Markets Equity ETF is a US ETF managed by Emerge ETF Trust, categorised as China Real Estate. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: Emerge ETF Trust
• Category: China Real Estate
• Assets under management: $509.49K
• Ticker: EMCH
• SEC CIK: 0001914404
• SEC series ID: S000076858
• Share class ID: C000236967

EMCH Investment Objective and Strategy

Emerge EMPWR Sustainable Emerging Markets Equity ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Emerge ETF Trust.

Investment objective

The investment objective of Emerge EMPWR Sustainable Emerging Markets Equity ETF (the Fund) is to seek long-term growth of capital.

Principal investment strategy

Under normal market conditions, the Fund invests at least 80% of its net assets, plus borrowings for investment purposes, if any, in equity securities of issuers located in emerging markets countries that, at the time of investment, meet the environmental, social, and governance (ESG) criteria established by Emerge Capital Management Inc. (Emerge or the Advisor). The Fund considers a countrys market to be an emerging market if it is defined as an emerging or developing economy by any of the International Bank for Reconstruction and Development (i.e., the World Bank), the International Finance Corporation or the United Nations or its authorities. Additionally, the Fund, for purposes of its investments, may consider a country included in JP Morgan, MSCI or FTSE emerging markets indices to be an emerging market country.

The Funds Sub-Advisor, Channing Global Advisors, LLC (Channing Global or the Sub-Advisor) may consider a company to be in an emerging market country if the company has been organized under the laws of, has its principal offices in, or has its securities principally traded in, an emerging market country, or if the company derives at least 50% of revenues or net profits from, or has at least 50% of assets or production capacities in, an emerging market country. The countries included in this definition will change over time. The Fund invests predominantly in equity securities. Equity securities include common stock (including real estate investment trusts), preferred stock, securities convertible into common stock, depositary receipts, or securities or other instruments whose price is linked to the value of common stock.

The Fund may invest in the securities of issuers of all capitalization sizes. The Fund, from time to time, may have significant investments in one or more countries, including China. Investments in Chinese companies may be made through a special structure known as a variable interest entity (VIE) that is designed to provide foreign investors with exposure to Chinese companies that operate in certain sectors in which China restricts or prohibits foreign investments. In a VIE structure, instead of directly owning the equity interests in a Chinese company, the listed company has contractual arrangements with the Chinese company. The Fund is non-diversified, which means it can invest a greater percentage of its assets in a small group of issuers or any one issuer than a diversified fund can. In selecting companies, Channing Global Advisors, LLC (Channing Global or the Sub-Advisor) uses proprietary fundamental data screening and fundamental research to identify companies that the Sub-Advisor believes present attractive growth opportunities, based on certain characteristics that, in the Sub-Advisors view, position the company to benefit from secular and tactical themes.

In identifying companies that offer attractive thematic growth opportunities, the Sub-Advisor seeks to identify favorable secular and tactical themes resulting from country and sector. These secular and tactical themes could include changes in commodities pricing, interest rates, exchange rates, or regulation. Through fundamental research, the Sub-Advisor then seeks to identify what the Sub-Advisor believes are high quality growth companies that, in the Sub-Advisors view, are undervalued relative to their estimated earnings and cash-flow growth and poised to deliver excess returns. For purposes of the Sub-Advisors selection process, quality includes measurements such as trading volume, balance sheet, income statement, cash flow, and sustainable growth; and growth includes measurements such as net income and earnings before interest, taxes, depreciation, and amortization.

The Sub-Advisor may recommend selling securities for several reasons, including when there are more attractive opportunities or where the original investment thesis for a company is no longer valid. Emerge considers ESG factors within its securities selection process for each equity security for the Fund. Emerge assesses whether a company meets the Funds ESG standards based on its proprietary ESG framework. Emerge uses ESG research, ratings, and analytics from independent third-party data providers to screen investments based on ESG criteria determined by Emerge. The Fund may hold securities of issuers for which third-party data is not available. Where an issuer has not been assigned a rating by the third-party data provider, Emerges ESG analysis incorporates publicly available data. Emerge has the right to change the third-party data providers that support its ESG framework at any time.

In determining whether an issuer meets Emerges ESG investment criteria, Emerge considers: (i) negative screening criteria to eliminate certain types of issuers in light of social and environmental considerations; and (ii) governance-related risk ratings published by third party data providers, including Sustainalytics, designed to measure the degree to which a companys economic value is at risk driven by the magnitude of a companys unmanaged ESG risks. As of the date of this Prospectus, Emerge applies a negative screen to exclude companies for investment that derive 20% or more of their revenues from biological and chemical weapons, thermal coal extraction, gambling, adult entertainment, tobacco production, and recreational cannabis. Emerge may modify the above list of negative screens at any time, without prior shareholder approval or notice.

ESG risk ratings data compiled by third-party data providers forms the basis for Emerges governance-related risk assessment and screening. Emerge may consider excluding, reducing or eliminating exposure to issuers with high ESG risk ratings, as determined by one or more third-party data providers. The Fund is an actively managed exchange-traded fund (ETF) that does not seek to replicate the performance of a specified index.

EMCH Costs and Fees

EMCH costs about $95 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.95%
• Gross expense ratio: 1.05%

EMCH Cashflows

Over the 12 months to 2023-04, Emerge EMPWR Sustainable Emerging Markets Equity ETF had net inflows of $500.00K, from monthly SEC N-PORT filings.

EMCH Debt Constituents

No individual debt constituents are reported in Emerge EMPWR Sustainable Emerging Markets Equity ETF's latest SEC N-PORT filing.

EMCH Prospectus and SEC Filings

Official Emerge EMPWR Sustainable Emerging Markets Equity ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus supplement (497) — filed 2022-09-06
• Portfolio holdings (N-PORT) — filed 2023-06-28
• Portfolio holdings (N-PORT) — filed 2023-03-24
• Portfolio holdings (N-PORT) — filed 2022-12-27

Related Funds

Other China Real Estate funds tracked on ABC INVEST:

• Vert Global Sustainable Real Estate Fund (VGSRX)
• Sparkline Emerging Markets Intangible Value ETF (ETAN)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.