Overview

An actively managed emerging-markets equity ETF that seeks long-term growth of capital.

About this Fund

Seeks to deliver consistent relative outperformance of the MSCI Emerging Markets Index across market cycles by investing at least 80% of its net assets in equity securities of issuers that are economically tied to emerging markets.
Combines quantitative and fundamental research to identify opportunities across the emerging markets universe and constructs a diversified portfolio that aims to deliver steady and attractive returns while carefully managing risks.
Emerging markets tend to be less efficient than developed markets due to lower analyst coverage, less transparent financial reporting and regulatory inconsistencies. These create opportunities for skilled managers to uncover mispriced assets. EMOP takes advantage of these dislocations by identifying fundamentally strong, profitable companies and buying them at the right price and the right time.
EMOP is an emerging markets equity ETF that uses a disciplined, multistyle approach that provides the best ideas across AB’s EM value, core and growth strategies. This approach offers the flexibility needed to succeed in various market conditions, while consistently aiming to deliver superior risk-adjusted returns relative to its benchmark.

Investment Approach

Holds approximately 50–70 stocks
Targets primarily emerging markets stocks but can hold non-EM companies that generate most of their revenue from emerging economies

Why Invest in the AB Emerging Markets Opportunities ETF?

EMOP is an actively managed EM equity ETF, allowing us to capitalize on forward-looking trends in a rapidly evolving emerging markets landscape. This contrasts with passive indexed funds, which are limited by their backward-looking, rigid allocation and rebalancing framework.
While most managers lean toward either quantitative or fundamentally driven portfolios, EMOP is an emerging markets ETF that integrates AB’s best investment ideas by combining fundamental and quantitative research.
Using propriety in-house technologies, AB has developed specialized quantitative tools tailored for emerging markets, designed to exploit market inefficiencies. For instance, our quant model employs advanced natural-language processing to gain unique insights into companies by analyzing foreign language transcripts. We have also developed our own patent signals, enabling our research analysts to more effectively assess the quality of company innovation. Fundamental research capabilities are supported by a team of analysts with boots on the ground across the globe. They bring unique perspectives on local markets to the investment process. We deploy grassroots research to explore investment ideas that may be overlooked by other research providers.
The Portfolio seeks to maintain risk in line with the MSCI Emerging Markets Index while targeting attractive upside/downside capture and excess return across different market styles. Portfolio construction and position sizing are carefully designed to build a resilient, well-balanced portfolio with many ways to win.

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The AB Emerging Markets Opportunities ETF (NYSE: EMOP) uses active management to zero in on what we believe to be the right companies at the right price and the right time.

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Additional Information

Understanding Sales Charges and Expenses

Statement of Policies and Procedures for Proxy Voting

Emerging Markets ETF FAQs

Emerging markets represent a vibrant segment of the global economy, characterized by rapid growth and industrialization. These countries, often referred to as emerging economies, are transitioning from developing to developed status and are marked by improving infrastructure, rising foreign investment and expanding consumer markets.

Drivers of Change and Innovation: Themes such as the continuing rise of middle-class wealth, accelerated digital transformation and nearshoring are set to be key growth drivers across asset classes. Many EM companies are at the forefront of innovation in these areas, presenting attractive investment opportunities.
Market and Macro Catalysts: After a challenging decade for emerging markets, global investors are starting to reallocate their portfolios due to a potential weakening of the US dollar and the anticipated rate cuts by the Fed and other central banks. Opportunities for return potential and mispricing across EM equities are also being driven by divergences in economic cycles, corporate fundamentals and currencies.
Expected Strong Earnings and Attractive Valuations: The MSCI Emerging Markets Index is expected to grow at 13.9% compared to the 8.3% of the MSCI World Index in 2025—and it’s still currently trading at a notable discount, despite the year-to-date rally. We believe EM investing offers an appealing long-term risk/reward profile, particularly for investors with a selective and active approach.
Alpha Potential and Diversification: The variety within emerging markets across geographies and sectors presents a unique opportunity to uncover a range of diversified, high-quality investment ideas—and to capture alpha potential. EM equities also tend to have a low correlation with developed-market assets, offering diversification benefits and potentially reducing the overall portfolio risk.

Emerging markets equities offer diversification benefits to investor portfolios concentrated in US and developed-market equities because of their historically low correlations and nonconcurrent economic and market cycles. Incorporating EM equities can help enhance overall risk/return performance. Portfolios with EM allocations may achieve improved Sharpe ratios. For example, a portfolio with a 25% weighting to emerging markets would have weathered the coronavirus drawdown more effectively than a portfolio that was purely invested in developed-market equities (Source: YCharts. 75% VEA/25% MSCI Emerging Markets Index vs. 100% VEA).

EM stocks have historically traded at lower valuations than developed-market and US stocks. However, this year and next year, they are projected to surpass developed-market stocks in terms of earnings growth, presenting a favorable entry point for investors.
A potentially weaker dollar for longer could benefit EM equities by attracting inflows, boosting corporate and economic growth and increasing commodity prices—all of which are crucial to many EM economies.

After years of underperformance and capital outflows, EM equities are today under-owned and underappreciated, creating a potential for a re-rating as investor sentiment shifts.
Despite the macro scale of emerging markets, they are underrepresented relative to other markets in most portfolios. While emerging markets and developing countries represent roughly 40% of global GDP and over 50% of global consumption growth, most investors typically hold a much smaller allocation within their portfolios.

An active approach is essential in emerging markets due to inefficiencies and the potential for alpha. These markets require nuanced strategies, and we suggest focusing on companies with robust fundamentals that can provide stable earnings and profitability and buying them at the right price and time.
Emerging markets tend to be less efficient than developed markets, creating mispricing opportunities that skilled active managers can exploit to deliver returns. Additionally, the greater dispersion in returns among EM companies further enables managers to identify and select the right stocks for enhanced performance. Active managers have a more robust toolkit to better manage political risk, currency volatility and governance issues. They can navigate these risks more effectively through on-the-ground research and dynamic portfolio adjustments to optimize security, sector and country positioning and balance return and risk. Passive indices, on the other hand, tend to overweight a few countries and sectors.

Risks To Consider

Investing in ETFs involves risk and there is no guarantee of principal.

Investors should consider the investment objectives, risks, charges and expenses of the Fund/Portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit our Literature Center or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

Shares of the ETF may be bought or sold throughout the day at their market price on the exchange on which they are listed. The market price of an ETF's shares may be at, above or below the ETF’s net asset value ("NAV") and will fluctuate with changes in the NAV as well as supply and demand in the market for the shares. Shares of the ETF may only be redeemed directly with the ETF at NAV by Authorized Participants, in very large creation units. There can be no guarantee that an active trading market for the Fund’s shares will develop or be maintained, or that their listing will continue or remain unchanged. Buying or selling the Fund’s shares on an exchange may require the payment of brokerage commissions and frequent trading may incur brokerage costs that detract significantly from investment returns.
Actions by a Few Major Investors: In certain countries, volatility may be heightened by actions of a few major investors. For example, substantial increases or decreases in cash flows of funds investing in these markets could significantly affect local stock prices and, therefore, share prices of the Fund.
China/Single Country Risk: Investments in issuers located in a particular country or geographic region typically involve more risk than investments in U.S. issuers because of particular market factors affecting that country or region, including political instability, geopolitical risks or unpredictable economic conditions. Risks of the Fund’s investments in securities of companies economically tied to China may include the volatility of the Chinese stock market; the Chinese economy’s heavy dependence on exports, which may be affected adversely by trade barriers or disputes or may decrease, sometimes significantly, when the world economy weakens; and the continuing importance of the role of the Chinese Government, which may take legal or regulatory actions that affect the contractual arrangements of a company or economic and market practices, and cause the value of the securities of an issuer held by the Fund to decrease significantly.
Country Concentration Risk: The Fund may not be diversified among countries or geographic regions and the effect on the Fund’s net asset value, such as political, regulatory and currency risks, may be magnified due to concentration of the Fund’s investments in a particular country or region, such as China. Risks of the Fund’s investments in securities of companies economically tied to China may include the volatility of the Chinese stock market, the Chinese economy’s heavy dependence on exports, and the continuing importance of the role of the Chinese Government. Recent developments in relations between the U.S. and China have heightened concerns of increased tariffs and restrictions on trade between the two countries. An increase in tariffs or trade restrictions, or even the threat of such developments, could lead to a significant reduction in international trade, which could have a negative impact on the economy of Asian countries and a commensurately negative impact on the Fund.
Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.
Emerging Markets Risk: Emerging markets may involve greater risks, such as currency volatility, political and social instability, and reduced market liquidity.
Foreign (Non-U.S.) Investment Risk: Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade than domestic securities due to adverse market, economic, political, regulatory, or other factors.
Sector Risk: The Fund may have more risk because it may invest to a significant extent in one or more particular market sectors, such as the information technology sector. To the extent it does so, market or economic factors affecting the relevant sector(s) could have a major effect on the value of the Fund’s investments.
Distributed by Foreside Fund Services, LLC. Foreside is not affiliated with AllianceBernstein.
AB funds may be offered only to persons in the United States and by way of a prospectus. This website should not be considered a solicitation or offering of any investment products or services to investors residing outside of the United States.

Investment Products Offered:

Are not FDIC Insured | May Lose Value | Are Not Bank Guaranteed

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