Columbia EM Core ex-China ETF (XCEM) Covered Calls

Columbia EM Core ex-China ETF provides broad, cost-effective exposure to emerging markets while intentionally excluding companies domiciled in China. By tracking the Beta Thematic Emerging Markets ex-China Index, the fund allows investors to capture the growth of developing economies like Taiwan, South Korea, India, and Brazil without the specific regulatory, geopolitical, or concentration risks associated with Chinese equities.

You can sell covered calls on Columbia EM Core ex-China ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for XCEM (prices last updated Thu 1:15 PM ET):

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Core Business and Products

Columbia EM Core ex-China ETF (XCEM) is a passively managed exchange-traded fund designed to serve as a "core" emerging markets holding for investors who wish to decouple their portfolio from China. The fund tracks the Beta Thematic Emerging Markets ex-China Index, which targets up to 700 companies across the emerging market universe. As of 2026, XCEM manages approximately $1.6 billion in assets and offers a highly competitive expense ratio of 0.16%.

The fund’s geographical allocation is heavily weighted toward technology-forward and commodity-rich nations:

1. Taiwan: The largest country weight (approx. 25-30%), led by global semiconductor giant TSMC.
2. India: A primary growth driver (approx. 18-22%), focusing on major financials like HDFC Bank and ICICI Bank.
3. South Korea: A major contributor (approx. 15-18%), providing heavy industrial and tech exposure via Samsung.
4. Brazil & Saudi Arabia: Providing a hedge through exposure to natural resources and regional financial powerhouses.

Competitive Landscape

XCEM operates in the "Diversified Emerging Markets" category. Its hallmark is cost leadership; it remains one of the least expensive ways to access the ex-China theme. While XCEM is fully optionable, it is often held by long-term strategic allocators. In the 2026 market environment, "Ex-China" has become a standalone asset class as investors look to separate Chinese geopolitical volatility from broader emerging market growth.

Key peers and related investment vehicles include:

1. iShares MSCI Emerging Markets ex China ETF: The category leader by assets and liquidity, tracking the MSCI ex-China benchmark.
2. KraneShares MSCI Emerging Markets ex China Index ETF: A major peer that provides similar broad-market exposure with a liquid options chain.
3. Vanguard FTSE Emerging Markets ETF: A broad EM sibling that includes China, used for comparing traditional vs. ex-China performance.
4. iShares MSCI Taiwan ETF: A country-specific peer representing the largest geographic risk factor in XCEM.
5. iShares MSCI India ETF: A peer focusing on the second-largest geographic exposure in the portfolio.

Strategic Outlook and Innovation

The strategic utility of XCEM has increased as the "China Plus One" manufacturing strategy gains momentum. By focusing on nations like India, Vietnam, and Mexico, XCEM captures the beneficiaries of global supply chain diversification. The fund provides a "pure-play" view on the digital transformation and middle-class expansion occurring across the non-Chinese developing world.

Innovation for the fund focuses on Columbia Threadneedle’s precise indexing and sampling techniques. By maintaining a liquid portfolio of the largest non-Chinese firms, the fund minimizes tracking error while maximizing tax efficiency. As institutional mandates increasingly shift toward "China-neutral" emerging market exposure, XCEM is positioned as a foundational tool for modern global portfolios.

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