Rayliant Quantamental Emerging Market Equity ETF (RAYE)

Overview

The Rayliant Quantamental Emerging Market Equity ETF (RAYE) seeks long-term capital appreciation by investing in a diversified portfolio of emerging market equities, utilizing a quantamental investment approach that combines quantitative analysis with fundamental research.

Reputation and Reliability

Rayliant Global Advisors is a relatively new firm focusing on quantitative investment strategies, particularly in emerging markets. Their reputation is building as they demonstrate their investment approach.

Management Expertise

The management team includes experienced professionals in quantitative finance and emerging market investing, leveraging a proprietary research platform.

Goal

Seeks long-term capital appreciation.

Investment Approach and Strategy

Strategy: RAYE employs a quantamental approach, combining quantitative models with fundamental research to identify undervalued emerging market equities.

Composition The ETF primarily holds stocks of companies located in emerging market countries.

Market Share: RAYE's market share in the emerging market equity ETF sector is relatively small compared to larger, more established funds.

Total Net Assets (AUM): 74437674

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 highly competitive, dominated by low-cost, passively managed funds. RAYE differentiates itself through its quantamental approach, aiming for higher returns through active stock selection, but faces the challenge of outperforming these established, low-cost competitors. RAYE has the disadvantage of being a smaller ETF with less liquidity than its competitors.

Historical Performance: Historical performance data should be obtained from reliable financial data providers. Performance varies based on market conditions.

Benchmark Comparison: The ETF's performance is compared against the MSCI Emerging Markets Index to assess its effectiveness in generating alpha.

Expense Ratio: 0.58

Average Trading Volume

RAYE's average trading volume is moderate, and varies based on market conditions.

Bid-Ask Spread

RAYE's bid-ask spread may be wider than more liquid ETFs due to its smaller AUM.

Market Environment Factors

Emerging market equities are influenced by global economic growth, currency fluctuations, commodity prices, and geopolitical risks.

Growth Trajectory

The ETF's growth is tied to the overall performance of emerging markets and the effectiveness of its quantamental investment strategy; changes to strategy and holdings will be detailed in fund prospectuses and reports.

Competitive Edge

RAYE's competitive advantage lies in its proprietary quantamental investment strategy, which aims to identify undervalued stocks based on a combination of quantitative models and fundamental research. This approach seeks to generate alpha by exploiting market inefficiencies and behavioral biases. The ETF targets companies with strong financial metrics and growth potential, but which may be overlooked by traditional fundamental investors. This differentiated approach offers investors a unique exposure to emerging markets.

Volatility

Emerging market equities are generally more volatile than developed market equities, making RAYE subject to significant price fluctuations.

Market Risk

The ETF faces market risk associated with economic and political instability in emerging market countries, as well as currency risk due to fluctuations in exchange rates.

Ideal Investor Profile

The ideal investor for RAYE is someone with a long-term investment horizon who is seeking exposure to emerging market equities and is willing to accept a higher level of risk in pursuit of potentially higher returns.

Market Risk

RAYE is suitable for long-term investors who understand the risks associated with emerging markets and are looking for a potentially higher-return investment option.

Rayliant Quantamental Emerging Market Equity ETF (RAYE) offers a quantamental approach to investing in emerging market equities. It aims for long-term capital appreciation by combining quantitative analysis with fundamental research, targeting undervalued companies in emerging markets. The ETF is suitable for investors with a higher risk tolerance and a long-term investment horizon. While it faces competition from larger, low-cost passive funds, RAYE's unique investment strategy can be an opportunity for investors seeking alpha. However, its relatively smaller AUM results in lower liquidity compared to more established funds.

Data Sources:

• Rayliant Global Advisors
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Market data is subject to change.