GMO Beyond China ETF (BCHI)

On our desk, BCHI is standing out as a fascinating tactical play for capturing structural supply chain relocations away from mainland China. Looking at the June 2026 data, the fund's 51.4% trailing 1-year return and its top-tier Morningstar grade A relative to the Diversified Emerging Mkts category show it's capturing real momentum. With major weightings in Taiwan Semiconductor and Samsung Electronics, it cleanly sidesteps mainland regulatory risks while riding the broader regional tech wave. Clients are using it to recalibrate their emerging market footprints without completely abandoning Asia.

When evaluating how institutional portfolios are implementing alternative strategies this year, BCHI offers a clear case study in thematic fund allocation. During our technical reviews, we look closely at how sector concentration—heavy on technology names like MediaTek and Delta Electronics—drives the alpha generation relative to traditional benchmarks. For analysts building out emerging market models, tracking BCHI's turnover rate and its performance against the Diversified Emerging Mkts category provides a useful baseline for assessing how targeted geopolitical exclusions impact overall portfolio resilience.

Reviewing the underlying structure of BCHI from a quantitative risk perspective, I note that while its 2026 NAV return of 30.1% looks stellar compared to the category average of 17.1%, we can't ignore the inherent non-U.S. investment and currency risks outlined in the filings. The portfolio holds a substantial cash-equivalent position in State Street Institutional Treasury MMkts at over 18%, alongside a 30% portfolio turnover. Investors need to weigh these liquidity characteristics and currency exposures carefully against the broader macroeconomic volatility hitting emerging markets this year.