Since the US election, EEM has edged SPY by ~1%.

=> Macro did the heavy lifting: USD up / copper down post-election which then reversed in 2025. Net net, macro was a propeller according to Quant Insight's Risk Model

=> Idiosyncratic(non-macro) factors have been a drag: Macro gains barely offset idio weakness —see the gap between light blue and orange lines in the chart below

Is the idio drag now dissipating?

Since the April 8 lows, EEM has beaten SPY by ~4%.

Here’s the kicker: 55% of that outperformance = idiosyncratic. Idio is making itself heard. Copper still >10% off YTD highs keeping the macro return relatively quiet.

This might mark the start of a change in investor mindset:

Buy dips not just for macro beta, but for regional diversification — from expensive US assets to EM trading at multi-year relative lows.

Think of the orange line as “alpha momentum” — what’s left when you strip out macro.

And as Mahmood Noorani, our CEO recently posted on Linkedin, once alpha momentum gets going, it can be sticky.

One to watch: can EEM outperformance be function of other factors, not just the path of the Dollar and commodities?