Alliance Bernstein has launched an active exchange-traded fund (ETF) on the TMX Australia Exchange aimed at providing exposure to the long-term growth potential of emerging market equities.
The AB Emerging Markets Strategic Core Equities Fund, trading under the CXA: MORE ticker, employs a strategy that was first launched in 2012 and seeks to capture 90 per cent of market upside and roughly 70 per cent of the downside over the long term of the relevant sectors.
“The build-out of our active ETF platform remains a key plank in our Australian distribution strategy. Following the listing of our Global Strategic Core Equities ETF earlier this year, adding an emerging markets strategy gives investors another high-quality, actively managed building block in a convenient, transparent and liquid vehicle,” Alliance Bernstein Australian client group managing director Ben Moore said.
The approach used looks to combine fundamental research with quantitative risk management to seek out high-quality stable companies at a sensible price.
As at July 2026, the fund was predominantly invested in China (23.6 per cent), Taiwan (22 per cent), South Korea (18.3 per cent), Brazil (6.9 per cent) and India (6.6 per cent). It also had significant allocations to technology and financials of 35.8 per cent and 22.7 per cent respectively.
Moore pointed out while emerging markets represent one of the most compelling long-term growth opportunities, many investors avoid the asset class due to volatility concerns.
“This strategy has been designed to address exactly that challenge, pairing a proven lower-volatility investment framework that protects the downside while providing the potential for long-term capital growth with the accessibility of an ETF,” he explained.
Alliance Bernstein head of emerging markets equities Sammy Suzuki indicated emerging economies now drive the majority of global expansion and also form a key part of the opportunity artificial intelligence presents.
“Growth is often available at a meaningful valuation discount, supported by stronger balance sheets, deeper capital markets and improved governance,” Suzuki noted.