T. Rowe Price launched a new emerging markets equity ETF on Thursday, expanding its active exchange-traded fund lineup into one of the fastest-growing investment categories.
The T. Rowe Price Emerging Markets Equity Research ETF (TEMR) began trading on the NYSE Arca with a net expense ratio of 0.40%, according to a press release announcing the fund.
The fund seeks long-term capital growth through a portfolio of emerging markets equities, according to the press release. TEMR will hold between 180 and 280 stocks and uses a structured research approach where the firm’s equity research analysts drive the security selection for their specific area of coverage.
The actively managed ETF is co-managed by six investment professionals: Sridhar Nishtala, Jason Nogueira, Tetsuji Inoue, Leigh Innes, Kamran Baig, and Tobias Mueller, according to the press release. This team also co-manages the $27.4 million T. Rowe Price International Equity Research ETF (TIER), which launched in June 2025.
The launch builds on the success of the fundamentally managed T. Rowe Price International Equity ETF (TOUS), which focuses on developed markets rather than emerging markets. TOUS has posted a one-year return of 21.4% since its June 2023 inception, according to ETF Database. The fund attracted $1.06 billion in net flows over the past year and has grown to $1.31 billion in assets.
“The launch of TEMR broadens T. Rowe Price’s global ETF offerings, as we bring investors access to the dynamic opportunities within emerging markets and help them capture growth where it’s unfolding,” Tim Coyne, global head of exchange-traded funds, said in the press release.
Building the Emerging Markets Portfolio
The fund normally invests at least 80% of its net assets in equity securities of issuers in emerging markets across Asia, Latin America, Europe, Africa, and the Middle East, according to the prospectus. It may at times invest heavily in Asia and specifically China.
TEMR uses a structured portfolio construction approach that weights each country, sector, and industry similarly to the MSCI Emerging Markets Index, according to the prospectus. Within each country, sector, and industry, the weighting of individual fund holdings can vary from their index weighting.
The fund’s decision-making process focuses on bottom-up stock selection with an awareness of the global economic backdrop, according to the prospectus. Country allocation is driven largely by stock selection. However, portfolio managers may limit investments in markets or industries that appear to have poor overall prospects.
The portfolio attempts to outperform the index by overweighting stocks viewed favorably relative to their index weighting and underweighting or avoiding stocks viewed negatively, according to the prospectus. The portfolio can also include select companies from outside the index, as determined by the research analysts.
Thursday’s launch brings T. Rowe Price’s active ETF roster to 32 funds. That includes 22 equity ETFs and 10 fixed income offerings, according to the press release.
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