Cutting China out of the emerging-market equation has been a winning strategy for a 10-month-old exchange-traded fund. The $8.9 million EGShares EM Core ex-China ETF has risen 23 percent this year to a record high, compared with a 11 percent gain in a $23.4 billion fund tracking MSCI Inc.’s developing-nation equity benchmark. The outperformance comes as mainland Chinese stocks post the second-worst performance among the world’s top 10 markets.

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