Pictet Asset Management Launches AI Emerging Market ETF
The new PGEM fund utilizes in-house artificial intelligence to identify emerging market investment opportunities.
Updated on Oct. 15, 2026 in Investing
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Pictet Asset Management has launched the Pictet AI Enhanced Emerging Equity UCITS ETF, trading under the ticker symbol PGEM. The fund is designed to actively identify complex patterns within emerging markets using proprietary artificial intelligence models.
Why it matters
The fund aims to provide investors with a strategic edge by targeting an annual outperformance of 1% relative to passive market benchmarks. By combining automated selection with human oversight, the strategy attempts to balance advanced data analysis with risk management.
The new ETF maintains a 0.3% total expense ratio and targets an annual outperformance of 1% against market benchmarks. The fund is structured to hold a beta of 1% with a maximum tracking error of 2%.
The players
Pictet Asset Management
This is a Switzerland-based independent asset management firm that provides investment solutions to institutional and private clients globally.
The details
The portfolio uses AI models to scan for complex market patterns, while a dedicated quantitative team ensures the picks result in a factor-neutral portfolio. The fund is now available for trading across major European financial venues.
Timeline
October 14, 2026: The fund listed on the Xetra, Borsa Italiana, and Swiss exchanges.
October 15, 2026: The fund expanded its availability to the London Stock Exchange.
Market Dynamics
This launch follows the industry trend of firms integrating machine learning into quantitative investment strategies to gain an advantage in volatile emerging markets. The move signals a broader shift as asset managers increasingly rely on algorithmic models to outperform passive benchmarks.
Retail and institutional investors can access the PGEM ticker across multiple European exchanges to gain exposure to emerging market equities. The 0.3% expense ratio provides a cost-managed entry point for those looking to utilize AI-enhanced active management strategies.
The takeaway
Investors interested in AI-driven strategies should monitor how the fund balances its 2% tracking error limit against its performance goals. This fund represents a shift toward using high-frequency pattern recognition to capture growth that traditional passive indexing might miss.
Further reading
For more information on market trends, visit the Investing section.
Source note: This article includes information reported by Portfolio Adviser.
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