Pictet Asset Management has rolled out two actively managed ETFs, Pictet Emerging Markets Debt ETF (NYSE:EMFI) and Pictet Emerging Markets Rising Economies ETF (NYSE:RISE), to capitalize on growing investor demand for diversification beyond a richly valued, tech-heavy U.S. market.
The new funds aim to tap into structural growth trends across emerging economies while addressing key risks through active management.
EMFI focuses on U.S. dollar-denominated sovereign and corporate bonds to deliver higher yields with reduced currency volatility, while RISE targets equity exposure to countries with favorable demographics and economic momentum.
Notably, RISE excludes North Asian markets, and focuses on countries with expanding working-age populations, tilting sector exposure away from technology toward financials, industrials, materials, and consumer goods.
Key Features Of The New ETFs
- Dual asset-class exposure: EMFI targets hard-currency emerging market debt, while RISE provides equity exposure to high-growth economies
- Active management edge: Strategies aim to navigate currency volatility, policy shifts, and demographic changes across EMs
- Differentiated equity approach: RISE excludes North Asian markets like China, South Korea, and Taiwan, focusing instead on countries like India, Brazil, and South Africa with expanding working-age populations
- Yield and stability focus: EMFI invests in U.S. dollar-denominated bonds to minimize FX risk while enhancing income potential
- Strategic diversification play: Both ETFs are positioned as alternatives to concentrated U.S. equity exposure, particularly in technology
- Backed by scale: Pictet manages over $20 billion in emerging market assets
The launch marks the firm's fifth and sixth active ETFs in the U.S., extending its long-standing emerging markets expertise dating back to the late 1980s.
They add to Pictet's growing U.S. ETF lineup, which includes AI-driven equity strategies and thematic funds, as asset managers increasingly bring active, globally diversified solutions to market amid shifting macro and valuation dynamics.
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