Trump China visit drives flows into ex-China ETFs

President Trump’s visit to China in 2026 coincided with increased investor flows into emerging‑market ETFs that exclude China. Fund managers and index providers reported demand for funds designed to separate China exposure from broader emerging‑market allocations as trade and security talks were underway.

Passive funds that reallocate China weight drew the largest sums. The iShares MSCI Emerging Markets ex China ETF (EMXC) held roughly $24 billion in assets and was launched in July 2017; it follows the MSCI Emerging Markets ex China Index and charges about 0.25% in fees. Columbia Threadneedle’s Columbia EM Core ex‑China ETF (XCEM), incepted in September 2015, had about $1.9 billion in assets and carries an expense ratio near 0.16%. Vanguard’s Vanguard Emerging Markets Ex‑China ETF (VEXC), introduced late in 2025, tracks the FTSE Emerging ex‑China Index, had about $216 million in assets and charges 0.07%.

Active managers also offer ex‑China exposure. The Avantis Emerging Markets ex‑China Equity ETF (AVXC), launched in March 2024, had about $374 million in assets and an expense ratio of 0.33%; the fund applies a profitability and value bias across market caps. Global X’s actively managed Emerging Markets ex‑China ETF (EMM) maintained a concentrated portfolio of roughly 44 holdings, charged about 0.66%, and reported assets near $62 million.

Some ETFs apply non‑geographic screens. The Freedom 100 Emerging Markets ETF (FRDM) weights country exposure by measures of civil, political and economic freedom and excluded China from its largest country allocations as of May 13. The National Security Emerging Markets Index ETF (NSI) uses a national security governance process to screen companies; VettaFi serves as index administrator and calculation agent for NSI and receives a fee but is not the ETF issuer.

Sector‑specific ex‑China products appeared as well. The Sprott Rare Earths Ex‑China ETF (REXC) launched recently and tracks an index that excludes Chinese‑domiciled companies involved in rare‑earth mining and processing, providing exposure to producers outside China.

Performance and flows reflected the reallocation. The MSCI Emerging Markets ex‑China Index outpaced broader emerging‑market benchmarks through 2026, with larger weights in India, Taiwan and Brazil cited as drivers. Research firms reported net outflows from China‑focused ETFs earlier in the year, and several managers reported that those outflows accelerated around the timing of the presidential visit.

Fund selection among ex‑China options varies by fee level, portfolio concentration and screening approach. Active funds, low‑cost passive ETFs and specialty products offer different methods for maintaining emerging‑market exposure while excluding or screening China.