At a glance
EMCS charges 0.15% a year, below the 0.26% average of the 8 funds most like it (the 5th cheapest of 9). It has $1.03B in assets, the 9th largest of that group; it paid 1.55% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +23.0% with distributions reinvested (S&P 500: +11.5%), 2nd of those 9 funds. Its ten largest positions make up 53.2% of the fund, out of 65 in all.
The short version
Xtrackers MSCI Emerging Markets Climate Selection ETF (EMCS) tracks the MSCI Global Climate 500 Emerging Markets Selection Index. That index holds about 65 large and mid-size emerging-market companies screened for carbon emissions and other environmental, social and governance (ESG) criteria. It costs 0.15% a year, below the 0.26% peer average, but it is concentrated. As of August 31, 2026, Taiwan Semiconductor alone was 19.4% of assets.
Price history
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EMCS +23.0% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| EMCS official prospectus, to Dec 31, 2024 | — | +11.02% | — | +1.14% | — | +3.09% |
| EMCS price data to Oct 27, 2026 | +23.7% | +23.0% | — | — | — | +28.1% |
- Over the year to Oct 27, 2026, EMCS returned +23.0%, 2nd of 9 among similar funds.
- Its worst full calendar year was 2025 (+38.7%); its best was 2025 (+38.7%).
- The deepest fall in its price history was 16.7% (Mar 17, 2025 to Apr 8, 2025), recovered by May 12, 2025.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +23.7% |
| 2025 | +38.7% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Nov 6, 2024 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Not in the price data, which starts Nov 6, 2024 |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.2500 | |
| 2025 | $0.5900 |
What's inside
As of Aug 31, 2026, the fund held 65 securities; the ten largest made up 53.23% of assets.
| Holding | Weight | |
|---|---|---|
| TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD | 19.44% | |
| SAMSUNG ELECTRONICS CO LTD | 10.35% | |
| SK HYNIX INC | 7.32% | |
| TENCENT HOLDINGS LTD | 4.68% | |
| ALIBABA GROUP HOLDING LTD | 2.85% | |
| MEDIATEK INC | 2.17% | |
| DELTA ELECTRONICS INC | 1.67% | |
| SOUTHERN COPPER CORP | 1.61% | |
| CHINA CONSTRUCTION BANK CORP | 1.58% | |
| HDFC BANK LTD | 1.55% | |
| HON HAI PRECISION INDUSTRY COMPANY LTD | 1.52% | |
| FUBON FINANCIAL HOLDING COMPANY LTD | 1.52% | |
| ICICI BANK LTD | 1.50% | |
| YUANTA FINANCIAL HOLDING COMPANY LTD | 1.48% | |
| PING AN INSURANCE (GROUP) COMPANY OF CHINA LTD | 1.40% |
By country
Taiwan 39.12%South Korea 22.48%Cayman Islands 12.51%India 7.1%China 6.96%By asset type
Stocks 96.54%Preferred stock 2.38%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $7.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.60%, -2.02%, +1.64%.
How it works
EMCS is an index fund. It aims to match the MSCI Global Climate 500 Emerging Markets Selection Index before fees, rather than relying on a manager's picks. That index is carved out of a global parent, the MSCI ACWI Select Climate 500 Index, which picks about 500 stocks from a broad world index. MSCI first removes companies tied to controversial or nuclear weapons, tobacco or thermal coal, plus those in very severe ESG controversies. It then selects stocks to lower the index's greenhouse gas emissions intensity. It also favors companies whose emission-cutting targets are approved by the Science Based Targets initiative (SBTi). Sector weights must stay within 3 percentage points of the broad index.
To build the emerging-markets version, MSCI keeps only parent-index stocks that are also in the MSCI Emerging Markets Index. It then scales their weights up to 100%. The parent's starting universe excludes Indonesia, Kuwait, Qatar, Saudi Arabia and the UAE, so the fund owns none of them. A final cap, which reflects US tax rules for funds, holds any single company group to 25% and limits groups above 5% to 50% combined.
The result is concentrated: 65 holdings as of August 31, 2026, with the top ten at 53%. The fund is classified as non-diversified. Its 171% turnover is high for an index fund.
What it really costs
- EMCS charges 0.15% a year, versus an average of 0.26% for the similar funds below (5th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $192 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| EMCS | $15 | $48 | $85 | $192 |
In a retirement portfolio
Heavy weights in a few Asian chipmakers, non-diversified status and a one-year beta of 1.54 make it a higher-risk addition, not a foundation.
EMCS could add emerging-market stocks to a portfolio built mostly on US shares, but it leans heavily on a few Asian chipmakers. It launched in December 2018, after the 2008 crisis, and price-based figures for the 2022 bear market aren't available. The prospectus shows a worst quarter of -22.6% in early 2020, during the COVID crash. Its deepest drop since November 2024 was 16.7%, from March 17 to April 8, 2025, and it recovered by May 12, 2025. Anyone who may need to sell in a bad year could face falls of this size.
Income is modest: the trailing yield was 1.55% as of October 27, 2026, paid twice a year. Costs are low. Under the SEC's standard example, the fund would cost $15 in the first year on $10,000. Past results don't predict the future, and a plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting emerging-market stocks with climate and ESG screens at 0.15% a year, below the 0.26% average of similar funds.
- People comfortable with heavy Asian tech exposure: Taiwan Semiconductor, Samsung and SK Hynix were about 37% combined as of August 31, 2026.
- Those holding a small satellite position who accept bigger swings, with a one-year beta of 1.54 and 26.8% volatility.
Look elsewhere if
- Cost-focused investors: IEMG charges 0.09% and VWO 0.07%. Both are cheaper than EMCS and far larger by net assets.
- Anyone wanting broad emerging-market coverage, since EMCS holds 65 stocks and skips Saudi Arabia, Indonesia, Qatar, Kuwait and the UAE.
- Income seekers, since the trailing yield was 1.55% as of October 27, 2026, paid only twice a year.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| EMCS this fund | — | 0.15% | $1.03B | +23.0% | — |
| EMXC iShares MSCI Emerging Markets ex China ETF | 50% | 0.25% | $24.92B | +27.3% | +24.6% |
| EEM iShares MSCI Emerging Markets ETF | 49% | 0.72% | $31.21B | +12.7% | +20.3% |
| IEMG iShares Core MSCI Emerging Markets ETF | 43% | 0.09% | $160.90B | +11.7% | +19.8% |
| SCHE Schwab Emerging Markets Equity ETF | 40% | 0.11% | $13.00B | +4.4% | +16.7% |
| DFAE Dimensional Emerging Core Equity Market ETF | 38% | 0.35% | $9.47B | +14.5% | +22.1% |
| VWO Vanguard FTSE Emerging Markets ETF | 37% | 0.07% | $162.04B | +3.3% | +16.8% |
| SPEM SPDR Portfolio Emerging Markets ETF | 33% | 0.07% | $17.31B | +5.0% | +16.8% |
Questions investors ask
What does EMCS invest in?
As of August 31, 2026, EMCS owned 65 large and mid-size emerging-market stocks that pass MSCI's climate and ESG screens. The largest were Taiwan Semiconductor Manufacturing (19.4%), Samsung Electronics (10.4%), SK Hynix (7.3%), Tencent (4.7%) and Alibaba (2.9%). Taiwan made up 39.1% of assets and South Korea 22.5%. Cayman Islands-registered companies such as Tencent and Alibaba were 12.5%, India 7.1% and China 7%. The top ten holdings were 53% of the fund.
What is the EMCS expense ratio?
EMCS charges 0.15% a year, according to its prospectus filed December 18, 2025. In the SEC's standard example, $10,000 earning 5% a year would cost about $15 after one year, $85 after five and $192 after ten. That is below the 0.26% average of similar funds. It is above IEMG (0.09%), SCHE (0.11%), and VWO and SPEM (both 0.07%). Its 171% turnover also brings trading costs that the expense ratio doesn't include.
Does EMCS pay dividends?
Yes. EMCS pays dividends twice a year. Over the 12 months to October 27, 2026, it paid $0.68 per share, a trailing yield of 1.55%. The money comes from dividends paid by the companies it holds, so the amount can vary from one payment to the next. At this level, the fund works more as a growth holding than a source of steady income.
EMCS vs EMXC: what's the difference?
Both own emerging-market stocks, but EMXC, the iShares MSCI Emerging Markets ex China ETF, leaves out China. EMCS still holds Chinese companies such as Tencent and Alibaba and adds climate and ESG screens. EMXC is the most similar fund by holdings, with about 50% overlap. EMCS costs 0.15% versus 0.25% for EMXC. EMXC is far larger, with $24.9 billion in net assets against about $1.03 billion. One-year returns were 27.4% for EMXC as of October 30, 2026, and 23% for EMCS as of October 27, 2026.
How has EMCS performed since launch?
Results have been uneven. As of December 31, 2024, the prospectus shows average annual returns of 11.02% over one year, 1.14% over five years and 3.09% since the December 2018 launch. Price-based returns were stronger after that: 38.7% in 2025 and 23.7% in 2026 through October 27. The swings have been large. Both its strongest quarter (19.83%) and its weakest (-22.6%) came in 2020.