Pictet Launches New AI-Driven Emerging Markets ETF
The fund offers a new strategy for investors looking to gain emerging market exposure with a 0.3% expense ratio.
Updated on Oct. 15, 2026 in Investing
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Pictet Asset Management has launched the Pictet AI Enhanced Emerging Equity UCITS ETF, ticker PGEM, which uses in-house artificial intelligence to select stocks in emerging markets. The fund aims to provide investors with a new option for international portfolio diversification.
Why it matters
The new ETF is designed for investors seeking to potentially outperform passive market benchmarks in emerging markets by utilizing algorithmic stock selection. It offers a managed approach to regional equity exposure for those looking to expand their international holdings.
The new fund carries a total expense ratio of 0.3%, which investors can compare against their existing portfolio costs. The strategy aims to beat market benchmarks by 1% annually while maintaining a beta of 1% and a maximum tracking error of 2%.
The players
Pictet Asset Management
An investment firm that offers a range of global funds and managed investment products for household and institutional portfolios.
The details
The Pictet AI Enhanced Emerging Equity UCITS ETF uses algorithmic models to scan for patterns in emerging market stocks that may not be apparent through traditional analysis. To manage risk, the firm's quantitative team oversees the automated selections to ensure the portfolio remains factor-neutral. This dual approach of AI-driven picking and human-led risk monitoring is intended to control tracking error and volatility within the fund.
Timeline
The ETF listed on the Xetra, Borsa Italiana, and Swiss exchanges on October 14, 2026.
The fund became available on the London Stock Exchange on October 15, 2026.
Money Landscape
The fund launch aligns with the ongoing expansion of the UCITS framework for cross-border investment products in Europe. It enters a crowded market for emerging equity vehicles, operating within a standard regulatory environment for international funds.
Investors interested in this fund should evaluate how its 0.3% expense ratio impacts the total cost of their international asset allocation. Before making changes to a portfolio, review your current emerging markets exposure with a qualified financial advisor to ensure it fits your goals.
The takeaway
The PGEM fund uses artificial intelligence to attempt to generate alpha in emerging market equity portfolios. Investors should track the fund's tracking error and performance relative to the 1% outperformance target over time to see if the strategy aligns with their risk tolerance.
Further reading
For more on building international equity positions, visit our guide to Investing.
Source note: This article includes information reported by Portfolio Adviser.
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