OneAscent Emerging Markets ETF (OAEM)

Overview

The OneAscent Emerging Markets ETF focuses on emerging market equities, employing a strategy that emphasizes a values-based approach. It aims to invest in companies that align with its ethical and moral criteria, alongside their financial performance, across various emerging economies.

Reputation and Reliability

OneAscent is an investment advisor and ETF sponsor known for its values-based investment philosophy. While newer to the ETF landscape compared to established giants, it aims to build a reputation for integrity and ethical investing.

Management Expertise

Information regarding the specific management team's detailed expertise is not readily available in public disclosures, but the firm's overall investment philosophy is guided by its proprietary values-screening process.

Goal

To provide long-term capital appreciation by investing in a diversified portfolio of equity securities of companies located in emerging market countries, screened according to OneAscent's values-based investment principles.

Investment Approach and Strategy

Strategy: The ETF actively selects companies rather than tracking a specific index. Its strategy involves a proprietary screening process to identify companies that meet both financial and values-based criteria.

Composition The ETF primarily holds equities of companies domiciled or with significant operations in emerging markets. The allocation is concentrated in sectors and individual companies that pass its unique screening methodology.

Market Share: As a niche ETF, its market share in the broader emerging markets ETF space is very small. Specific numerical data is not publicly available.

Total Net Assets (AUM):

Key Competitors

• Vanguard Emerging Markets Stock ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)
• iShares MSCI Emerging Markets ETF (EEM)

Competitive Landscape

The emerging markets ETF space is highly competitive and dominated by large, low-cost index-tracking ETFs. OneAscent Emerging Markets ETF differentiates itself through its values-based investment approach, appealing to a specific segment of investors. Its primary disadvantages are its smaller AUM, potentially higher expense ratio compared to passive giants, and the subjective nature of its screening criteria, which may lead to performance divergence from broader emerging market benchmarks. Its advantage lies in its unique ethical focus, offering an option for socially responsible investors.

Historical Performance: Specific historical performance data for the OneAscent Emerging Markets ETF is limited due to its relatively recent inception. Performance will depend on the selection of underlying companies and broader emerging market trends.

Benchmark Comparison: Direct benchmark comparisons are difficult due to its unique values-based strategy. It is unlikely to perfectly track broad emerging market indices like the MSCI Emerging Markets Index.

Expense Ratio:

Average Trading Volume

The average trading volume for the OneAscent Emerging Markets ETF is generally low, indicating less liquidity compared to larger, more established ETFs.

Bid-Ask Spread

The bid-ask spread for the OneAscent Emerging Markets ETF is typically wider than for highly liquid ETFs, which can increase trading costs for investors.

Market Environment Factors

Emerging markets are influenced by global economic growth, commodity prices, geopolitical stability, currency fluctuations, and interest rate policies in developed nations. The OneAscent ETF's performance will also be affected by the appetite for values-based investing.

Growth Trajectory

As a newer ETF with a niche strategy, its growth trajectory is dependent on attracting investors who align with its values and on the overall performance of the emerging markets it covers. Changes in holdings will be driven by its proprietary screening process.

Competitive Edge

The ETF's primary competitive edge is its unique values-based screening process, which is not commonly found in broad emerging market ETFs. This appeals to a specific segment of investors seeking to align their investments with their ethical convictions. By focusing on companies that meet both financial and moral criteria, it aims to offer a differentiated approach to emerging market investing, potentially attracting a loyal investor base.

Volatility

Emerging market equities are generally more volatile than developed market equities due to political instability, currency fluctuations, and economic uncertainties. The OneAscent Emerging Markets ETF will inherently carry this higher volatility.

Market Risk

Specific risks include currency risk, political and sovereign risk, economic risk, and the risk that the values-based screening may exclude potentially high-performing companies. There is also the risk associated with concentration if the screening process leads to a less diversified portfolio.

Ideal Investor Profile

The ideal investor is one who is seeking exposure to emerging markets with a strong emphasis on ethical and values-based investing. They should be comfortable with the higher volatility associated with emerging markets and understand that the ETF's strategy may lead to performance deviations from broad market benchmarks.

Market Risk

This ETF is likely best suited for long-term investors who prioritize ESG or values-based investing and are willing to accept potentially lower liquidity and a unique investment methodology in pursuit of their goals.

The OneAscent Emerging Markets ETF offers a values-based approach to investing in emerging market equities, distinguishing itself from traditional passive ETFs. While it targets long-term capital appreciation, investors should be aware of the inherent volatility of emerging markets and the ETF's niche strategy. Its competitive edge lies in its ethical screening, appealing to a specific investor segment. However, it faces competition from larger, more liquid, and lower-cost emerging market ETFs.

Data Sources:

• ETF provider websites and prospectuses (where available)
• Financial data aggregators (e.g., ETF.com, Morningstar - for general ETF market data and competitor analysis)

Disclaimers:

This information is for informational purposes only and does not constitute investment advice. ETF market data, performance, and competitor analysis are subject to change. Investing in emerging markets carries higher risks, including volatility and political instability. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.