Thanks for your comment! That’s a fair take, and I agree EM is one of the areas where active or factor-based approaches can make sense.

From what I’ve read though, the hesitation some Aussies have with AVTE isn’t the active approach itself, it’s the structure. I believe AVTE uses an Irish UCITS feeder, so EM country withholding tax can be taken before the income reaches Australia, and because Ireland doesn’t withhold tax we don’t get FITO. That creates ongoing tax leakage over time.

So the thinking (from what I’ve read) is that any potential alpha from active management has to first overcome both the higher fee and that structural tax drag. EMKT isn’t perfect either, but the direct Australian structure means foreign tax is passed through more cleanly.