First Trust Active Factor Emerging Markets ETF (AFEM)

The First Trust Active Factor Emerging Markets ETF (AFEM) is an actively managed exchange-traded fund from First Trust Advisors. It invests in equity securities of companies in emerging-market countries.

Instead of simply holding stocks in proportion to their market value, the fund's managers use a factor-based process, assessing companies on characteristics such as value, quality, momentum, size and low volatility that have historically been linked to differences in returns. The portfolio is constructed and adjusted actively based on these factor exposures, with the aim of outperforming a broad emerging-markets benchmark over time.

The fund is part of First Trust's lineup of active factor ETFs, which also includes strategies focused on U.S. and international developed-market stocks. Its shares are listed on Nasdaq.