Polen Capital has introduced a new actively managed ETF offering exposure to high-quality growth-oriented companies within emerging markets outside of China.

By excluding China, the ETF delivers greater exposure to growth opportunities in regions such as South East Asia.

The Polen Capital Emerging Markets ex-China Growth ETF (PCEX US) has been listed on NYSE Arca with an expense ratio of 1.00%.

Polen Capital is known for its disciplined, quality-focused investment philosophy. The firm employs rigorous fundamental analysis to select between just 25 and 40 companies with sustainable competitive advantages, strong balance sheets, and the potential for long-term earnings growth.

Despite the small number of portfolio holdings, Polen seeks to ensure adequate diversification across various sectors including technology, consumer goods, healthcare, and financial services.

The exclusion of China from the investment universe is a strategic decision, one that may be particularly relevant given the increasing regulatory challenges and geopolitical tensions surrounding Chinese markets. By focusing on emerging markets outside of China, the ETF aims to capture the robust growth opportunities in regions such as India, Brazil, and Southeast Asia – markets that are experiencing rapid economic development, a growing middle class, and significant technological advancements.

The ETF presents several compelling advantages for investors. First, it offers a more diversified exposure to emerging markets by minimizing the concentration risk typically associated with China. Additionally, the fund is consistent with Polen Capital’s disciplined approach to investing in high-quality growth companies, making it an attractive option for those with a long-term investment horizon.

Polen Capital also offers an actively managed China-focused growth ETF, the $30 million Polen Capital China Growth ETF (PCCG US), which has an expense ratio of 0.95%. Together with the Polen Capital Emerging Markets ex-China Growth ETF, investors now have a comprehensive toolkit to precisely tailor their exposure to Chinese equities, enabling a more nuanced and strategic approach to building a growth-oriented emerging markets portfolio.