Rayliant Quantitative Developed Market Equity ETF (RAYD)

Overview

The Rayliant Quantitative Developed Market Equity ETF (RAYD) is designed to provide exposure to developed market equities, excluding the U.S., using a quantitative investment strategy that focuses on factors like value, momentum, and quality.

Reputation and Reliability

Rayliant Global Advisors is a relatively new but growing firm known for its quantitative investment approach and expertise in emerging markets and China.

Management Expertise

The management team consists of experienced professionals with backgrounds in quantitative finance and asset management.

Goal

The ETF seeks long-term capital appreciation by investing in a diversified portfolio of developed market equities, excluding the U.S.

Investment Approach and Strategy

Strategy: RAYD employs a proprietary quantitative model to select and weight stocks based on factors such as value, momentum, quality, and low volatility.

Composition The ETF holds a portfolio of equities from developed markets outside of the U.S., primarily consisting of stocks from Europe, Japan, and Australia.

Market Share: RAYD's market share within the developed market ex-U.S. equity ETF sector is relatively small compared to larger, more established funds.

Total Net Assets (AUM): 40744968

Key Competitors

• VEA
• IDEV
• SPDW
• SCHF

Competitive Landscape

The developed market ex-U.S. equity ETF sector is highly competitive, dominated by low-cost, market-cap-weighted funds like VEA and SCHF. RAYD differentiates itself through its quantitative approach, but faces the challenge of demonstrating consistent outperformance against these well-established competitors. RAYD's advantage lies in its smart-beta strategy, but its disadvantage is a relatively higher expense ratio compared to market-cap-weighted funds.

Historical Performance: Historical performance data needs to be sourced from financial data providers. Performance will vary and is not guaranteed.

Benchmark Comparison: A suitable benchmark would be the MSCI EAFE Index. Performance comparison requires historical data and statistical analysis.

Expense Ratio: 0.09

Average Trading Volume

The ETF exhibits moderate liquidity based on its average trading volume, which facilitates trading for most investors.

Bid-Ask Spread

The bid-ask spread is typically small, reflecting the ETF's generally healthy trading activity.

Market Environment Factors

Economic growth in developed markets, currency fluctuations, and global trade policies influence RAYD's performance.

Growth Trajectory

RAYD's growth trajectory depends on the continued adoption of quantitative strategies and its ability to attract assets from investors seeking alternatives to market-cap-weighted indices. Changes to strategy and holdings would be reported in fund prospectuses and factsheets.

Competitive Edge

RAYD's competitive edge lies in its proprietary quantitative model, which seeks to exploit market inefficiencies and generate alpha. The ETF's factor-based approach may offer diversification benefits and potentially higher returns compared to traditional market-cap-weighted indices. The ETF's targeted factor exposures, such as value, momentum, and quality, are believed to drive long-term outperformance. Rayliant also possesses expertise in Asian markets which informs its investment models.

Volatility

RAYD's volatility depends on the underlying volatility of the developed market equities it holds and the effectiveness of its quantitative strategy. Historical volatility data is needed for assessment.

Market Risk

RAYD is subject to market risk, including the risk of economic downturns, geopolitical events, and changes in investor sentiment that can negatively impact equity prices.

Ideal Investor Profile

The ideal investor for RAYD is one who seeks exposure to developed market equities outside of the U.S. and believes in the potential of quantitative investment strategies.

Market Risk

RAYD is suitable for long-term investors seeking diversification and potential outperformance through a smart-beta approach.

Rayliant Quantitative Developed Market Equity ETF (RAYD) offers exposure to developed markets outside of the US using a quantitative approach to select and weight securities based on factors such as value, momentum and quality. It offers diversification benefits to US-centric investors but has a relatively high expense ratio compared to its market-cap weighted counterparts, facing the challenges of demonstrating consistent outperformance. Its quantitative approach is its advantage in a market dominated by established low-cost ETFs. The ETF's success hinges on attracting investors who seek alternatives to market-cap-weighted indices and trust in its proprietary investment strategy.

Data Sources:

• Rayliant Global Advisors Website
• ETF.com
• Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Financial data is subject to change and may not be completely accurate. Market share data is approximated.