At a glance
GEM charges 0.35% a year, above the 0.25% average of the 8 funds most like it (the 7th cheapest of 9). It has $1.75B in assets, the 9th largest of that group; it paid 2.0% of its price in distributions over the past 12 months, annual. Over the past year it returned +15.1% with distributions reinvested (S&P 500: +11.5%), 3rd of those 9 funds; over three years it returned +22.3% a year. At its worst it fell 30.8% in the 2020 crash (S&P 500: 33.7%) and 30.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 24 months after the lows. Its ten largest positions make up 34.8% of the fund, out of 738 in all.
The short version
Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) tracks the Goldman Sachs ActiveBeta Emerging Markets Equity Index. That index takes the stocks of the MSCI Emerging Markets Index and tilts them by rules toward four traits: value, momentum, quality and low volatility. Its 0.35% expense ratio, after a fee waiver, is above the 0.25% average of similar funds and well above IEMG's 0.09%. It is still about half of EEM's 0.72%.
Price history
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GEM +15.1% 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 | |
|---|---|---|---|---|---|---|
| GEM official prospectus, to Dec 31, 2024 | — | +6.91% | — | +1.35% | — | +5.28% |
| GEM price data to Oct 27, 2026 | +15.1% | +15.1% | +22.3% | +7.3% | +7.9% | +8.7% |
- Over the year to Oct 27, 2026, GEM returned +15.1%, 3rd of 9 among similar funds.
- Its 5-year annualized return was +7.3% and its 10-year +7.9%.
- In the 2020 COVID crash it fell 30.8% and regained its old high 5.2 months after the low.
- Its worst full calendar year was 2022 (-21.3%); its best was 2017 (+36.4%).
- The deepest fall in its price history was 37% (Jan 26, 2018 to Mar 23, 2020), recovered by Dec 4, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +15.1% | — |
| 2025 | +33.4% | — |
| 2024 | +6.6% | +6.91% |
| 2023 | +11.8% | +11.26% |
| 2022 | -21.3% | -20.46% |
| 2021 | -0.2% | -0.21% |
| 2020 | +13.2% | +13.23% |
| 2019 | +17.8% | +17.26% |
| 2018 | -14.2% | -13.51% |
| 2017 | +36.4% | +35.58% |
| 2016 | +8.8% | +9.47% |
| 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 | Lost 30.8% over that stretch · deepest drop along the way 30.8%, back to its old high 5.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 29% over that stretch · deepest drop along the way 30.6%, back to its old high 23.9 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.9600 | +17.1% |
| 2024 | $0.8200 | -9.9% |
| 2023 | $0.9100 | +8.3% |
| 2022 | $0.8400 | -24.3% |
| 2021 | $1.1100 | +79.0% |
| 2020 | $0.6200 | -42.6% |
| 2019 | $1.0800 | +71.4% |
| 2018 | $0.6300 | -3.1% |
| 2017 | $0.6500 | +22.6% |
| 2016 | $0.5300 |
What's inside
As of Aug 31, 2026, the fund held 738 securities; the ten largest made up 34.84% of assets, and 7.03% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD | 14.54% | |
| SAMSUNG ELECTRONICS CO LTD | 7.02% | |
| SK HYNIX INC | 4.52% | |
| TENCENT HOLDINGS LTD | 2.69% | |
| ALIBABA GROUP HOLDING LTD | 1.67% | |
| MEDIATEK INC | 1.40% | |
| SAMSUNG ELECTRONICS CO LTD Preferred stock | 0.92% | |
| CHINA CONSTRUCTION BANK CORP | 0.77% | |
| DELTA ELECTRONICS INC | 0.76% | |
| ISHARES INC MSCI MLY ETF NEW | 0.54% | |
| SAMSUNG ELECTRO MECHANICS | 0.51% | |
| ICICI BANK LTD | 0.47% | |
| HON HAI PRECISION INDUSTRY COMPANY LTD | 0.46% | |
| HDFC BANK LTD | 0.42% | |
| LG ELECTRONICS INC | 0.38% |
By country
Taiwan 25.15%South Korea 19.43%China 11.02%India 10.69%Cayman Islands 8.26%By asset type
Stocks 94.05%Preferred stock 2.11%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $91.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -1.22%, -2.95%, +3.32%.
How it works
GEM is an index fund, so it follows a set of rules rather than a manager's calls. Goldman Sachs Asset Management builds the index, and Solactive AG calculates it. The rules start from the MSCI Emerging Markets Index, which weights companies by their market value. Every stock gets a score on four "factors", meaning traits that have often been linked to beating the market. They are value (a cheap price compared with book value, sales and free cash flow), momentum (a rising share price), quality (profitability) and low volatility (smaller price swings). Stocks that score above a fixed cut-off get more weight than they have in the MSCI index. Stocks that score below it get less.
This produces four factor subindexes, which are then combined in equal parts. The index holds only long positions, so a stock's weight can drop to zero but never below it. It is normally rebalanced every quarter, on MSCI's schedule. As of December 1, 2025, the index held 754 stocks from 24 countries, including Brazil, China, India, South Korea, Taiwan and Saudi Arabia.
The fund must keep at least 80% of its assets in index stocks or depositary receipts on them. Depositary receipts are certificates that trade on another exchange and represent a foreign company's shares. The fund may own just a sample of the index. It pays out part of its redemptions in cash, which can make it less tax-efficient than a typical ETF.
What it really costs
- GEM charges 0.35% a year, versus an average of 0.25% for the similar funds below (7th of 9, cheapest first).
- Of that, 0.4% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.24% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $715 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| GEM | $36 | $165 | $305 | $715 |
In a retirement portfolio
GEM adds stocks from Taiwan, South Korea, China, India and other emerging markets to a portfolio built mostly on US shares, but its swings make it a supporting piece rather than a core one.
GEM gives a portfolio exposure to emerging market companies. As of August 31, 2026, its largest holdings were Taiwan Semiconductor, Samsung Electronics and SK Hynix. The ride has been rough. The fund fell 30.8% in the 2020 COVID crash and recovered in about five months. In 2022 it fell 30.6% and took about 24 months to recover, until October 2024. Its worst calendar year was 2022, at -20.46%. Its deepest drop was 37%, from January 2018 to March 2020. Anyone who had to sell shares during those stretches would have locked in losses. The fund launched in 2015, so it has no record from 2008. The trailing yield was 2% as of October 27, 2026. The fund pays only once a year, so it is not a steady income source. In the SEC's standard example, costs come to about $36 in the first year on $10,000. Past results don't predict the future. A plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want emerging market stocks tilted toward value, momentum, quality and low volatility, using a published set of rules instead of a manager's judgment.
- People who want a heavy weight in Asian technology. Taiwan and South Korea made up about 45% of assets as of August 31, 2026.
- Long-term holders who can live with sharp drops, like the 30.6% fall in 2022 that took about 24 months to recover.
Look elsewhere if
- Cost-focused investors. GEM's 0.35% expense ratio is well above the 0.07% to 0.11% charged by VWO, SPEM, SCHE and IEMG.
- People who need regular income. GEM pays once a year, and its trailing yield was 2% as of October 27, 2026.
- Investors in taxable accounts who care about tax efficiency, since GEM pays out part of its redemptions in cash, which can trigger capital gains.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| GEM this fund | — | 0.35% | $1.75B | +15.1% | +22.3% |
| EEM iShares MSCI Emerging Markets ETF | 70% | 0.72% | $31.21B | +12.7% | +20.3% |
| IEMG iShares Core MSCI Emerging Markets ETF | 65% | 0.09% | $160.90B | +11.7% | +19.8% |
| EMXC iShares MSCI Emerging Markets ex China ETF | 63% | 0.25% | $24.92B | +27.3% | +24.6% |
| ESGE iShares ESG Aware MSCI EM ETF | 57% | 0.26% | $6.91B | +15.2% | +23.2% |
| SCHE Schwab Emerging Markets Equity ETF | 54% | 0.11% | $13.00B | +4.4% | +16.7% |
| VWO Vanguard FTSE Emerging Markets ETF | 51% | 0.07% | $162.04B | +3.3% | +16.8% |
| DFEM Dimensional Emerging Markets Core Equity 2 … | 50% | 0.39% | $8.96B | +14.6% | +21.4% |
Questions investors ask
Is GEM actively managed?
No. Despite "ActiveBeta" in the name, GEM is an index fund. It tracks the Goldman Sachs ActiveBeta Emerging Markets Equity Index, which reweights the MSCI Emerging Markets Index using fixed rules. Those rules favor stocks that score well on value, momentum, quality and low volatility. The prospectus says the fund does not use traditional active management, which picks stocks based on economic and market analysis. The index is normally rebalanced every quarter.
What's the difference between GEM and IEMG?
The main differences are cost and weighting. IEMG, the iShares Core MSCI Emerging Markets ETF, charges 0.09% and weights stocks by market value. GEM charges 0.35% and tilts toward its four factors. About 65% of their holdings overlap. As of late October 2026, GEM's one-year price return was 15.1%, against 13.3% for IEMG. Their three-year annualized returns were close, at 22.3% and 22.2%. IEMG is also far larger.
Does GEM pay dividends?
Yes, but only once a year. GEM paid $0.96 per share over the trailing 12 months, a yield of 2% as of October 27, 2026. The payouts come from dividends paid by the fund's emerging market companies, so they can change from year to year. Because the fund pays just once a year, it may fit poorly for someone who wants monthly or quarterly cash flow.
What is GEM's expense ratio?
GEM's expense ratio is 0.35%, according to the prospectus filed December 29, 2025. That figure is after a 0.24% fee waiver on a 0.40% management fee. In the SEC's standard example, $10,000 earning 5% a year would cost about $36 after one year, $305 after five years and $715 after ten. That ranks 7th of 9 similar funds on cost. The group average is 0.25%.
How has GEM performed over the long term?
Results have been mixed and bumpy. The prospectus shows an average annual return of 1.35% for the five years to December 31, 2024. Since its 2015 launch, the average was 5.28% a year. More recent price returns are stronger: 7.9% a year over ten years and 22.3% a year over three years, as of October 27, 2026. Calendar years ranged from a 35.58% gain in 2017 to a 20.46% loss in 2022.