Overall four-star Morningstar-rated1 fund was first broad-based emerging markets ETF to exclude exposure to China
Has attracted more than $1.1 billion in client assets2 due to a decade of strong performance and investor demand
Columbia Threadneedle Investments today is celebrating Columbia EM Core ex-China ETF (NYSE Arca: XCEM) reaching its 10-year anniversary. Launched in 2015, XCEM was the first-ever broad-based emerging markets ETF to exclude exposure to China. Rated as a four-star fund by Morningstar, it has delivered stronger historical returns than broad emerging market benchmarks for a decade.
XCEM—the oldest ETF in its EM ex-China category—has established itself as a cornerstone for investors looking to control their exposure to China, mitigating certain risks while still capturing the significant growth opportunity in emerging markets.
“We launched XCEM in 2015 as a way to address investor concern that the expected inclusion of A-share listed Chinese companies in traditional emerging market indices would uncomfortably overweight allocations to that economy,” said Marc Zeitoun, Head of North America Product and Business Intelligence. “We’re proud that since its inception, XCEM continues to satisfy a distinct portfolio need for investors who are looking for a more balanced approach to investing in emerging markets.”
XCEM is managed by Christopher Lo, Head of Research Enhanced Strategies, and Henry Hom, Senior Portfolio Manager. The Fund tracks the Beta Thematic® Emerging Markets Ex-China Index, giving investors broad exposure to emerging markets by measuring stock performance of up to 700 emerging markets companies, excluding companies listed or domiciled in China or Hong Kong.
“Considering the continued geopolitical tensions and macroeconomic risks that are top of mind for investors recently, the longstanding credibility of XCEM over the last decade remains just as important now,” adds Lo. “With over $1.1 billion in client assets, XCEM is a powerful example of the value that Columbia Threadneedle’s indexed portfolio solutions and investment expertise can generate for clients.”
XCEM has generated returns in the top 16% of Morningstar’s U.S. Fund Diversified Emerging Markets category for the 5-year time period. The Fund’s strong performance highlights the benefits that controlling exposure to China can have for emerging market investors.
Morningstar ratings and rankings1
| Time Period | Overall | 1-Year | 3-Year | 5-Year |
| PercentileRanking | – | 79% | 21% | 16% |
| # of Peers | 711 | 769 | 711 | 629 |
| Morningstar Rating | 4 | – | 4 | 4 |
1 Based on Morningstar category: US Fund Diversified Emerging Mkts, as of June 30, 2025
As of August 31, 2025, XCEM has 332 holdings and a total expense ratio of 0.16%, making it one of the cheapest and most cost-efficient options for investors in the category.
Columbia Threadneedle currently offers 14 ETFs across the active/indexed spectrum. A full listing of our ETFs can be found here: https://www.columbiathreadneedleus.com/investment-products/exchange-traded-funds.
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