EMGF vs EQLT

EMGFAiShares Emerging Markets Equity Factor ETF

EQLTCiShares MSCI Emerging Markets Quality Factor ETF

In short

EMGF Emerging markets, sorted by factor screen instead of straight market cap. EMGF holds roughly 700 large- and mid-cap EM stocks picked for style-factor exposure, and charges 0.26% doing it, about half the multifactor EM norm.

EQLT Most emerging-market factor funds blend several signals together. EQLT picks one and commits: quality. It tracks an MSCI index of roughly 300 large- and mid-cap EM companies screened for high profitability, low debt and steady earnings, for 0.35% a year.

Stated mandate

EMGF EMGF seeks to follow an index of large- and mid-capitalization emerging-market stocks selected for favorable exposure to specified style factors, subject to constraints.

EQLT The fund seeks to track an index of large- and mid-cap emerging-market stocks selected for high profitability, low leverage, and earnings consistency.

Why people hold it

• EMGF 0.26% a year, versus a 0.48% median across multifactor EM funds. It undercuts AVES, JPEM, ROAM and QEMM on fee.
• Roughly 700 large- and mid-cap names, so the factor tilts sit on a broad base rather than a handful of concentrated bets.
• Running since 2015 as a billion-dollar-plus iShares fund, with steady enough volume for routine retail orders.
• On cost and ease of trading, one of the stronger builds in the multifactor emerging-markets group.

• EQLT Charges 0.35% a year, under the median expense ratio for emerging-market factor funds in its peer group.
• One factor, clearly defined: the MSCI Emerging Markets Quality Factor Select Index screens for high profitability, low leverage and earnings consistency. No black-box blending of competing signals.ishares.com
• Roughly 300 holdings across emerging markets, so the quality screen still leaves a broad spread of names rather than a concentrated bet.
• Priced below multifactor EM rivals like JPMorgan's JPEM and Hartford's ROAM, both at 0.44%.

Worth knowing

• EMGF Factor tilts mean the portfolio can drift well away from a plain cap-weighted EM index, in either direction, for long stretches.ishares.com
• Emerging-market equity carries currency swings and country-level political risk on top of normal stock risk. Volatility here sits at the rougher end of its peer group.ishares.com
• Distributions land annually or semiannually, not monthly, so it is not built as an income drip.

• EQLT Small asset base and thin trading volume. Spreads can run wider than in the giants of the emerging-market shelf, which matters most on larger orders.
• Launched in 2024, so there is no long live record to judge how the screen holds up across a full emerging-market cycle.
• A quality tilt is a deliberate deviation from the broad EM index. Rallies led by cheap, cyclical or heavily levered companies are the ones this screen filters out.

Full EMGF profile⁠

Full EQLT profile⁠