Macquarie Focused Emerging Markets Equity ETF

Macquarie Focused Emerging Markets Equity ETF (EMEQ) is an actively managed, non-diversified fund. Instead of tracking an index, its manager picks about 55 emerging-market stocks. It is heavily concentrated: as of June 30, 2026, South Korean companies made up 46.5% of assets and the 10 largest holdings made up 65%. It charges 0.85% a year, far more than index funds such as IEMG at 0.09%.

• Over the year to Oct 27, 2026, EMEQ returned +53.7%, 1st of 8 among similar funds.
• Its worst full calendar year was 2025 (+69.8%); its best was 2025 (+69.8%).
• The deepest fall in its price history was 26.3% (Jun 22, 2026 to Oct 22, 2026), not yet recovered.

As of Jun 30, 2026, the fund held 55 securities; the ten largest made up 65.11% of assets, and 4.71% sat in cash and money-market holdings.

• Over the three months to Jun 30, 2026, investors added a net $139.3M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +26.78%, +24.19%, +5.60%.

EMEQ is actively managed: Delaware Management Company picks stocks rather than tracking an index. At least 80% of net assets must be in stocks of emerging-market companies, defined as those in countries the World Bank, the United Nations or their governments consider developing. It invests mainly in MSCI Emerging Markets Index countries, in companies of any size.

The manager looks for durable companies trading below intrinsic value, its estimate of a business's true worth. Durability covers how well a company competes with global peers and how future changes could help or hurt it. Valuation tools include discounted cash flow (valuing a business by its expected future cash flows), peer ratio comparisons and upside-and-downside scenarios. There is no index weighting or rebalancing calendar; the manager sizes positions. The July 29, 2026 prospectus lists 36% portfolio turnover, roughly a third of the portfolio traded in a year.

The fund is non-diversified, meaning it can hold big stakes in a few companies and may put over 25% of assets in one country or sector, typically information technology or financials. As of June 30, 2026, it had 55 holdings, with 65% in the top 10, 46.5% in South Korea and 16.3% in SK Square alone. It can buy China A shares, listed in Shanghai and Shenzhen, through the Stock Connect link with Hong Kong.

• EMEQ charges 0.85% a year, versus an average of 0.31% for the similar funds below (8th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $87 in the first year and $1,049 over 10 years (assuming a 5% annual return).

EMEQ is a concentrated, actively managed emerging-markets fund with a short record and large price swings, so it fits a small slice of a portfolio rather than its core.

EMEQ could add emerging-market growth to a portfolio built mostly on US stocks, but it is a concentrated bet. The fund launched on September 4, 2024, so it has no record through the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, returned 69.4%. That strong start hides real swings. The fund fell 26.3% from June 22 to October 22, 2026 and had not recovered as of October 27, 2026. Anyone forced to sell shares during a slump like that would lock in the losses. The yield was 1.86% as of October 27, 2026, paid once a year, so this is not an income fund. At 0.85% a year, the SEC's standard $10,000 example puts costs at $1,049 over 10 years. Past results don't predict future returns. A plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.