Fund Performance
The Abrdn Emerging Markets Dividend Active ETF achieved a 3.19% gain during the first quarter of 2026, surpassing the benchmark’s 0.10% decline. Year-to-date through March 31, 2026, the fund’s NAV returned 3.04%, while the market price rose 6.12%, compared to the benchmark’s -0.17% drop.
| Period | Fund (NAV) | Market Price | Benchmark |
|---|---|---|---|
| 10 Years (p.a.) | 8.84% | 9.13% | 8.91% |
| 5 Years (p.a.) | 7.58% | 8.16% | 8.07% |
| 3 Years (p.a.) | 18.32% | 19.38% | 16.37% |
| 1 Year | 39.89% | 42.56% | 29.55% |
| Year to Date | 3.04% | 6.12% | -0.17% |
| 3 Months | 3.04% | 6.12% | -0.17% |
| 1 Month | -12.27% | -9.42% | -13.06% |
The benchmark uses the MSCI Emerging Markets Index (Net TR) from February 29, 2024, and the MSCI All Country World Index ex USA Index (Net TR) prior to that date. The fund’s gross/net expense ratio stands at 1.14%/0.70%. Performance data reflects reinvested dividends and capital gains but excludes taxes.
Top Performers
Brazilian holdings drove gains, with state-owned oil giant Petrobras and independent producer Prio advancing amid higher oil prices due to Middle East supply issues. Prio also benefited from production ramps at its Wahoo field and emphasis on shareholder returns. Telefonica Brasil climbed on robust earnings, fueled by mobile and fiber growth with effective cost management. Mexican copper miner Grupo Mexico rose with tightening copper supply and steady demand.
Taiwan’s Chroma ATE contributed positively after strong earnings and AI-related growth in chip testing. Kazakhstan’s Kazatomprom, the world’s top uranium producer, gained as nuclear energy optimism lifted uranium prices.
Key Detractors
Indian selections lagged amid valuation worries and earnings slowdowns. HDFC Bank topped detractors, pressured by deposit growth concerns limiting loans and a chairman’s resignation in March, though management attributed it to minor disagreements without governance issues. Bajaj Holdings & Investment and Tata Consultancy Services also underperformed.
HD Korea Shipbuilding & Offshore Engineering dropped sharply on profit-taking, order concerns from conflicts, and rising competition.
Market Overview
Emerging market equities ended the quarter slightly down in USD, outperforming developed markets. Early strength from a weak USD, investor inflows, and AI enthusiasm faded after US-Israel strikes on Iran closed the Strait of Hormuz, spiking oil prices and stoking inflation fears. Trade tensions escalated with new US tariffs following a Supreme Court decision.
Portfolio Changes
New additions included China’s Inner Mongolia Yili Industrial Group (dairy), Montage Technology (chip design), and Thailand’s Bangkok Dusit Medical Services (hospitals). Outside Asia, positions opened in Greece’s Metlen Energy & Metals and South Africa’s Valterra Platinum, plus a return to Chile’s Sociedad Quimica y Minera de on improved lithium cash flows.
Sales comprised Air Astana, Americana Restaurants, Bank of the Philippine Islands, Chuangxin Industries, Silergy, and Sporton International. Asian Terminals shares were tendered post-privatization.
Outlook
Middle East tensions cloud emerging markets prospects with energy pressures, but a quick resolution benefits all. Long-term positivity stems from EM divergence (some gain from oil), capex for supply chain resilience and AI/energy security, and attractive valuations post-selloff with upward earnings revisions.
Focus remains on technology, infrastructure, and domestic brands for earnings growth. The portfolio balances high dividend payers and growers with strong cash flows, pricing power, and solid balance sheets to navigate volatility.
