GMO Beyond China ETF

GMO Beyond China ETF (BCHI) is an actively managed fund that holds emerging-market stocks outside China, mainly in Taiwan, India and South Korea. It does not track an index. Instead, GMO picks companies it expects to gain as supply chains move out of China. Its 0.65% annual fee is higher than index-based rivals like EMXC (0.25%). With about $19.4 million in assets as of May 31, 2026, it is the smallest fund in its peer group.

• Over the year to Oct 27, 2026, BCHI returned -67.5%, 5th of 5 among similar funds.
• The deepest fall in its price history was 78% (Jun 2, 2026 to Oct 9, 2026), not yet recovered.

As of May 31, 2026, the fund held 97 securities; the ten largest made up 49.52% of assets.

• Over the three months to May 31, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -13.05%, +18.32%, +10.57%.

BCHI does not track an index. Managers at Grantham, Mayo, Van Otterloo & Co. (GMO) pick its holdings, aiming for total return (price gains plus income). It invests in companies tied to emerging markets, which the prospectus defines as markets the MSCI World Index does not treat as developed. China is excluded. GMO first reviews which countries, regions and sectors stand to gain as supply chains leave China. It links that shift to rising Chinese labor costs, geopolitical tensions and companies spreading out their suppliers.

Within that universe, GMO combines its own quantitative (computer-driven) models with company research. It looks at growth, quality, valuation and signals such as price trends and volatility. It also weighs position size, sector, country and currency exposure, company size, liquidity and trading costs. With no index to follow, holdings change when GMO's views change. Turnover (the share of holdings replaced over a year) was 30% in the prospectus filed June 30, 2026. GMO generally avoids cluster-munitions makers and companies mainly involved in thermal coal mining.

The prospectus also allows derivatives (contracts such as options, futures, currency forwards and swaps) and lending out its stocks. Both can add leverage, which magnifies losses. As of May 31, 2026, the fund held no derivatives. It had 99.44% of assets in 97 stocks, with about half in the 10 largest. Samsung Electronics (14.05%) and Taiwan Semiconductor Manufacturing (10.97%) led the list.

• BCHI charges 0.65% a year, versus an average of 0.49% for the similar funds below (3rd of 5, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $66 in the first year and $810 over 10 years (assuming a 5% annual return).

It is a small, actively managed bet on one theme in emerging markets, with Samsung Electronics and Taiwan Semiconductor alone making up about 14% and 11% of assets as of May 31, 2026.

Next to core funds, BCHI could add a bet on supply chains moving from China to other emerging markets. It launched in February 2025, so it has no record from the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. Its price fell 78% from June 2 to October 9, 2026, and had not recovered by October 27. That was a hard stretch for anyone needing cash. Over the year to that date, its price fell 67.5% while similar ex-China funds rose.

These price figures leave out payouts. BCHI pays quarterly and paid out $10.72 per share in that year, a yield near 152% of the share price. No fund could keep paying at that rate, so GMO's total-return figures are worth checking. Fees are 0.65% a year, above the 0.49% average for similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).