Emerging Market ETF GEM Sending Buy Signals

Core Insights - Emerging markets, particularly the Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM), are gaining attention as they have outperformed broader market averages, returning 19.5% year-to-date [1][2] - GEM's multifactor investment strategy focuses on value, momentum, quality, and low volatility, distinguishing it from traditional passive funds [3] - The ETF's largest investments are in China, Taiwan, and India, with a significant allocation to financials and technology sectors [3] Performance Metrics - GEM has achieved a year-to-date return of 19.5%, surpassing the ETF Database Category average of 16.8% and the FactSet Segment average of 16% [1] - Over a three-year period, GEM has returned 11.3%, outperforming the averages of 10.1% and 7.3% for the same timeframe [2] Strategic Positioning - The focus on emerging markets may provide resilience against potential downturns in developed markets, particularly in Europe, where geopolitical risks are prevalent [4] - Emerging markets are expected to experience lower inflation compared to developed markets in the coming years, enhancing their attractiveness [4] Technical Indicators - As of August 8, GEM's price of $38.08 was above both its 50-day and 200-day simple moving averages, indicating potential upward momentum [5]