SPDR® MSCI Emerging Markets StrategicFactors ETF (QEMM)

Overview

The SPDRu00ae MSCI Emerging Markets StrategicFactors ETF (QEMM) seeks to provide investment results that, before fees and expenses, correspond generally to the performance of the MSCI Emerging Markets Factor Mix A-Series Index. The fund aims to enhance returns and reduce risk by incorporating value, quality, and low volatility factors.

Reputation and Reliability

State Street Global Advisors (SSGA) is a well-established and reputable ETF provider with a long history in the asset management industry.

Management Expertise

SSGA has a large and experienced team of investment professionals managing a wide range of ETF products.

Goal

The investment goal of QEMM is to track the performance of the MSCI Emerging Markets Factor Mix A-Series Index, which reflects a mix of value, quality, and low volatility factors.

Investment Approach and Strategy

Strategy: QEMM aims to track the MSCI Emerging Markets Factor Mix A-Series Index, utilizing a sampling strategy to achieve similar performance.

Composition QEMM primarily holds stocks from emerging market countries, focusing on companies with attractive value, high quality, and low volatility characteristics.

Market Share: QEMM has a moderate market share within the emerging market strategic beta ETF category.

Total Net Assets (AUM): 89950000

Key Competitors

• Dimensional Emerging Markets Value ETF (DFEV)
• Avantis Emerging Markets Value ETF (AVEM)
• VictoryShares Emerging Market High Div Volatility Wtd ETF (CDIV)

Competitive Landscape

The emerging market strategic beta ETF market is competitive, with several ETFs offering similar factor-based approaches. QEMM competes on its factor mix, expense ratio, and tracking effectiveness. Its advantage lies in SSGA's brand and factor implementation. Disadvantages might include a lower AUM compared to larger competitors, which could affect liquidity.

Historical Performance: Historical performance data should be obtained from official fund factsheets. This will include NAV returns for 1yr, 3yr, 5yr, and 10yr periods.

Benchmark Comparison: QEMM's performance should be compared to the MSCI Emerging Markets Index and the MSCI Emerging Markets Factor Mix A-Series Index to assess its factor-based outperformance or underperformance.

Expense Ratio: 0.3

Average Trading Volume

QEMM's average trading volume provides sufficient liquidity for most investors, however, one must always check the current average volume before trading.

Bid-Ask Spread

The bid-ask spread can vary depending on market conditions, however, the average bid-ask spread typically is not very large.

Market Environment Factors

Emerging market equities are influenced by global economic growth, commodity prices, currency fluctuations, and geopolitical risks. Specific factors impacting QEMM include the performance of its value, quality, and low volatility factor tilts within the emerging market universe.

Growth Trajectory

QEMM's growth depends on investor demand for factor-based emerging market exposure and its ability to deliver competitive returns relative to its benchmark and peers. Changes to strategy and holdings are driven by the index methodology.

Competitive Edge

QEMM's competitive edge comes from its strategic factor mix approach, combining value, quality, and low volatility factors within the emerging markets. This aims to provide enhanced returns with reduced risk. SSGA's established reputation and robust factor implementation methodologies also contribute to its competitive advantage. The ETF offers a diversified approach that seeks to capture multiple sources of alpha in emerging markets. It benefits from SSGAu2019s established ETF platform and distribution network.

Volatility

QEMM's volatility will be influenced by the volatility of emerging market equities and the specific risk profiles of its factor tilts. Low volatility factor should provide some level of reduced volatility when compared to a typical emerging market index.

Market Risk

QEMM is subject to emerging market risk, including economic, political, and currency risks. The fund's value, quality, and low volatility factors may also underperform in certain market environments.

Ideal Investor Profile

The ideal investor for QEMM is someone seeking long-term capital appreciation through exposure to emerging market equities with a focus on value, quality, and low volatility factors.

Market Risk

QEMM is most suitable for long-term investors seeking factor-based exposure to emerging markets as part of a diversified portfolio.

The SPDRu00ae MSCI Emerging Markets StrategicFactors ETF (QEMM) provides exposure to emerging market equities by employing a strategic mix of value, quality, and low volatility factors. Managed by State Street Global Advisors, the ETF seeks to track the MSCI Emerging Markets Factor Mix A-Series Index. The ETF is suited for long-term investors seeking factor-based exposure, but is subject to emerging market volatility. While QEMM benefits from SSGA's expertise, prospective investors should be aware of the potential risks and compare the fund against other emerging market strategic beta ETFs.

Data Sources:

• State Street Global Advisors (SSGA) Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Market data is subject to change. Consult with a financial advisor before making any investment decisions.