Sophus Capital Launches 0.65% All-Cap ETF and 0.85% Small-Cap ETF
EMEM•Sophus Capital launched two actively managed emerging market ETFs: EMEM, an all-cap fund with a 0.65% management fee, and EMSC, a small-cap fund charging 0.85%. Both funds use a proprietary alpha model that ranks over 5,000 companies and began trading on May 20, 2026.
1. ETF Launch Details
Sophus Capital introduced two new ETFs on Nasdaq: EMEM, an all-cap emerging market ETF, and EMSC, a small-cap counterpart. Shares of both funds commenced trading on May 20, 2026, marking the team’s first ETF offerings and expanding distribution to retail and smaller institutional investors.
2. Fund Strategies and Fees
EMEM seeks long-term capital appreciation across the full emerging market universe with a 0.65% annual management fee, while EMSC targets small-cap companies at a 0.85% fee. Together they provide complementary exposure to global trade and technology themes as well as local market diversification.
3. Proprietary Alpha Model
Both funds are driven by the Sophus Capital Emerging Markets Alpha Model, which evaluates over 5,000 companies on earnings growth momentum and valuation attractiveness. Top-quintile companies undergo rigorous fundamental analysis and direct management engagement to exploit structural inefficiencies in emerging markets.
4. Market Rationale and Outlook
Renewed emerging market momentum is supported by a weaker U.S. dollar, a shift to regionalized trade, and AI-driven technology spending. Long-term drivers include favorable demographics, expanding wealth, and access to key resources and technologies positioning these ETFs as diversifiers in global portfolios.
