Emerging Markets Active ETF (REMG)

Overview

Emerging Markets Active ETF actively manages a portfolio of emerging market equities, seeking to outperform traditional market-cap-weighted indexes through security selection and strategic asset allocation.

Reputation and Reliability

The issuer has a solid reputation and a proven track record in managing active ETFs, indicating reliability and stability.

Management Expertise

The management team comprises experienced professionals with extensive knowledge of emerging market equities and active portfolio management strategies.

Goal

To achieve long-term capital appreciation by investing in a diversified portfolio of emerging market equities through active management.

Investment Approach and Strategy

Strategy: The ETF employs an active management strategy, selecting securities based on fundamental research and macroeconomic analysis, rather than passively tracking an index.

Composition The ETF primarily holds stocks of companies domiciled in or with significant operations in emerging market countries. It may also hold cash and cash equivalents.

Market Share: Detail market share of the ETF in its specific emerging market active sector is moderate but growing.

Total Net Assets (AUM): 500000000

Key Competitors

• VWO
• IEMG
• EEM

Competitive Landscape

The emerging markets ETF landscape is highly competitive, dominated by large, passive index funds. Emerging Markets Active ETF differentiates itself through active management, aiming to outperform passive benchmarks. Its advantage lies in its ability to adapt to changing market conditions, but it faces the challenge of consistently generating alpha compared to its lower-cost passive competitors.

Historical Performance: Historical performance data for Emerging Markets Active ETF: 1-Year Return: 12.5, 3-Year Return: 8.2, 5-Year Return: 7.1

Benchmark Comparison: The ETF's performance is compared against the MSCI Emerging Markets Index to assess its value added through active management. Positive alpha indicates outperformance, while negative alpha indicates underperformance.

Expense Ratio: 0.75

Average Trading Volume

The ETF exhibits adequate liquidity, as reflected by its average daily trading volume, which ensures ease of entry and exit for investors.

Bid-Ask Spread

The bid-ask spread is relatively narrow, indicating efficient trading and minimal transaction costs for investors.

Market Environment Factors

Economic growth rates in emerging markets, geopolitical stability, currency fluctuations, and commodity price movements all influence Emerging Markets Active ETF's performance.

Growth Trajectory

The ETF's growth trajectory is dependent on its ability to attract assets through consistent outperformance and effective marketing. Changes to the portfolio strategy and holdings may occur as market conditions evolve.

Competitive Edge

Emerging Markets Active ETF's competitive edge lies in its active management approach, which allows for strategic security selection and asset allocation based on in-depth research and analysis. This approach enables the fund to potentially outperform passive benchmarks by capitalizing on market inefficiencies and emerging trends. The ETF's experienced management team, with their expertise in emerging markets, further enhances its competitive advantage. This proactive management style helps adapt to changing market conditions and mitigate risks more effectively than passive strategies.

Volatility

Emerging Markets Active ETF's volatility is expected to be higher than developed market ETFs due to the inherent risks associated with emerging markets.

Market Risk

The ETF is subject to market risk, including economic and political instability, currency fluctuations, and regulatory changes in emerging market countries.

Ideal Investor Profile

The ideal investor for Emerging Markets Active ETF is someone with a long-term investment horizon, a higher risk tolerance, and a desire to gain exposure to the growth potential of emerging markets.

Market Risk

The ETF is more suitable for long-term investors who seek capital appreciation and are comfortable with the volatility associated with emerging market equities.

Emerging Markets Active ETF offers investors exposure to emerging market equities through an active management approach, aiming to outperform passive benchmarks. The ETFu2019s success hinges on its ability to generate alpha through strategic security selection and adapt to changing market conditions. While it offers growth potential, investors must be aware of the inherent risks associated with emerging markets. The expense ratio is higher compared to passively managed ETFs, which is a trade-off for the potential for higher returns through active management. Ultimately, the ETF targets sophisticated investors seeking long-term capital appreciation with a higher risk tolerance.

Data Sources:

• ETF.com
• Morningstar
• Company Fact Sheets

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investors should consult with a financial advisor before making any investment decisions.