CGNG vs EMM

CGNGACapital Group New Geography Equity ETF

EMMCGlobal X Emerging Markets ex-China ETF

In short

CGNG Most emerging-markets funds sort companies by headquarters address. CGNG sorts by where the money is made, so a developed-country firm earning heavily in developing economies can qualify. Capital Group runs it actively against the MSCI EM benchmark.

EMM Emerging markets with China cut out and no index to hide behind. Global X hands part of the stock picking to Mirae Asset's Hong Kong team, which runs a roughly 40-name book of would-be market leaders at a price below the active ex-China competition.

Stated mandate

CGNG The fund seeks long-term capital appreciation by investing primarily in common stocks of companies with significant exposure to developing economies or markets, including companies domiciled in developed countries when a significant share of their assets or revenues is attributable to developing countries.

EMM The fund seeks long-term capital growth by actively selecting emerging-market companies outside China that may achieve or maintain dominant positions in their markets, with emphasis on early winners in growing industries.

Why people hold it

• CGNG The mandate counts companies domiciled in developed countries when a significant share of their assets or revenues comes from developing ones. A revenue map, not a passport check.capitalgroup.com
• Actively managed by Capital Group, holding roughly 220 stocks and measured against the MSCI Emerging Markets Index rather than tracking it.
• Easy to deal in for an active EM strategy: a multi-billion-dollar fund that trades actively, which tends to keep entry and exit costs modest.
• Sits in the top quartile of the active emerging-markets ETFs we grade, one of the stronger overall builds in a crowded field.

• EMM 0.66% expense ratio undercuts the active ex-China field, including PEMX at 0.70% and WCME at 0.95%.
• Part of the stock picking sits with Mirae Asset Global Investments (Hong Kong), an Asia-based sub-adviser hunting early winners in growing industries.globalxetfs.com
• Portfolio matches the label: roughly 40 emerging-market names, China excluded, picked for dominant positions in their markets rather than index weight.globalxetfs.com
• Trading since 2010, with a real record behind it, and one of the stronger implementations among active ex-China peers.

Worth knowing

• CGNG 0.64% a year is right at the middle for active EM funds, but systematic rivals such as AVEM, JEMA and AVXC charge 0.33%.
• Launched in 2024, so the record is short and has not been tested across a full emerging-markets cycle.
• Because eligibility follows revenue, the country mix can look quite different from a standard EM index, including names based in developed markets.

• EMM A smaller fund that trades lightly. Wider spreads come with the territory, and order type matters more here than in a giant EM index fund.
• Roughly 40 active picks means results can drift well away from broad EM benchmarks, in either direction, and single names carry real weight.
• Built for growth, not income: distributions land once or twice a year, and China's market is off the menu by design.

Full CGNG profile⁠

Full EMM profile⁠