Rayliant Quantamental Emerging Market Equity ETF (RAYE)

Overview

The Rayliant Quantamental Emerging Market Equity ETF seeks to provide long-term capital appreciation by investing in a diversified portfolio of emerging market equities, employing a quantitative and fundamental investment approach.

Reputation and Reliability

Rayliant Global Advisors is a relatively new player in the ETF market, but their quantitative approach is recognized. It's important to note their limited track record compared to larger, established issuers.

Management Expertise

The management team combines quantitative expertise with on-the-ground knowledge of emerging markets.

Goal

To provide long-term capital appreciation by investing in emerging market equities.

Investment Approach and Strategy

Strategy: Employs a quantamental approach, blending quantitative analysis with fundamental research to select securities.

Composition Primarily holds stocks of companies located in emerging market countries.

Market Share: Due to the ETF's limited AUM, its market share in the emerging markets equity ETF sector is relatively small.

Total Net Assets (AUM): 20000000

Key Competitors

• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)
• Schwab Emerging Markets Equity ETF (SCHE)

Competitive Landscape

The emerging market equity ETF space is dominated by large, established players like Vanguard and iShares. Rayliant's quantamental approach offers a differentiated strategy, but its smaller size presents a challenge in gaining market share. Key advantages would be superior risk-adjusted returns compared to passive index trackers, but it's disadvantaged by lower liquidity and potentially higher expense ratios than larger competitors.

Historical Performance: Insufficient data available to provide meaningful historical performance analysis due to the fund's relatively recent inception.

Benchmark Comparison: Cannot compare performance to a benchmark without sufficient historical data.

Expense Ratio: 0.68

Average Trading Volume

The ETF's average trading volume is generally low, which can impact execution prices.

Bid-Ask Spread

The bid-ask spread can be relatively wide due to low trading volume, increasing transaction costs.

Market Environment Factors

Emerging market equities are influenced by global economic growth, commodity prices, currency fluctuations, and political stability within specific countries.

Growth Trajectory

The ETF's growth depends on its ability to deliver competitive risk-adjusted returns and attract investor interest in its quantitative strategy. Changes to strategy and holdings data are currently unavailable.

Competitive Edge

Rayliant's quantamental approach combines the best of both quantitative and fundamental investing. This aims to exploit market inefficiencies in emerging markets by identifying undervalued companies with strong growth potential. Their team's experience in emerging markets provides a deeper understanding of local market dynamics, resulting in more effective stock selection. However, the small size of the fund can be a disadvantage when competing with larger funds.

Volatility

Volatility is expected to be higher than developed market equities due to the inherent risks of investing in emerging markets.

Market Risk

Emerging markets are subject to political instability, currency risk, regulatory changes, and economic volatility, which can negatively impact the ETF's performance.

Ideal Investor Profile

Investors with a high risk tolerance and a long-term investment horizon who seek exposure to emerging market equities with a potentially higher return profile.

Market Risk

Suitable for long-term investors seeking diversification and growth potential through emerging market equities.

The Rayliant Quantamental Emerging Market Equity ETF offers a unique approach to investing in emerging market equities by combining quantitative analysis and fundamental research. Its quantamental strategy seeks to identify undervalued companies with strong growth potential. However, the ETF's small size and relatively high expense ratio may be a deterrent for some investors. It is best suited for investors with a long-term investment horizon and a high-risk tolerance, seeking potential outperformance in emerging markets. Before investing, carefully consider the fund's liquidity and trading costs.

Data Sources:

• Rayliant Global Advisors Website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should consult with a financial advisor before making any investment decisions.