SPDR® MSCI Emerging Markets Fossil Fuel Reserves Free ETF (EEMX)

ETF SPDR® MSCI Emerging Markets Fossil Fuel Reserves Free ETF (ENZL) Overview:

Profile:

ENZL is an exchange-traded fund (ETF) that tracks the MSCI Emerging Markets Fossil Fuel Reserves Free Index. It offers exposure to a diversified portfolio of large and mid-cap companies in emerging markets, excluding those with significant fossil fuel reserves. ENZL invests in various sectors, including information technology, financials, and consumer discretionary.

Objective:

The primary investment objective of ENZL is to provide investment results that, before expenses, generally correspond to the performance of the MSCI Emerging Markets Fossil Fuel Reserves Free Index.

Issuer:

State Street Global Advisors (SPDR):

• Reputation and Reliability: SPDR is a leading provider of exchange-traded funds (ETFs) with a strong reputation for reliability and innovation. It has been managing ETFs since 1993 and currently offers over 300 ETFs across various asset classes and investment strategies.
• Management: The ETF is managed by a team of experienced professionals with expertise in emerging markets and index investing.

Market Share and Total Net Assets:

• Market Share: ENZL has a market share of approximately 0.5% in the Emerging Markets Equity ETF category.
• Total Net Assets: As of November 8, 2023, ENZL has total net assets of approximately $2.5 billion.

Moat:

• Fossil Fuel Reserves Free Focus: ENZL offers a unique exposure to emerging markets while excluding companies with significant fossil fuel reserves, appealing to investors concerned about environmental sustainability.
• Broad Diversification: The ETF provides diversified exposure across various sectors and countries within emerging markets, reducing concentration risk.

Financial Performance:

• Historical Performance: Since its inception in 2018, ENZL has delivered a positive annualized return of approximately 7%.
• Benchmark Comparison: ENZL has outperformed its benchmark index, the MSCI Emerging Markets Index, over the same period.

Growth Trajectory:

The growth of ENZL will depend on various factors, including investor demand for sustainable investing options and the performance of emerging markets. The increasing awareness of environmental, social, and governance (ESG) factors suggests potential for further growth.

Liquidity:

• Average Trading Volume: ENZL has an average daily trading volume of approximately 250,000 shares, indicating good liquidity.
• Bid-Ask Spread: The bid-ask spread is typically tight, around 0.05%, further enhancing its liquidity.

Market Dynamics:

• Economic Indicators: Global economic growth and emerging market performance significantly impact ENZL.
• Sector Growth Prospects: The growth prospects of the sectors represented in the ETF, such as technology and financials, will influence its performance.
• Market Volatility: Overall market volatility can affect the ETF's price fluctuations.

Competitors:

• iShares Core MSCI Emerging Markets IMI ETF (IEMG)
• Vanguard FTSE Emerging Markets ETF (VWO)
• Xtrackers MSCI Emerging Markets ESG Leaders Equity ETF (EMSG)

Expense Ratio:

The expense ratio of ENZL is 0.20%, which is considered competitive within its category.

Investment Approach and Strategy:

• Strategy: ENZL passively tracks the MSCI Emerging Markets Fossil Fuel Reserves Free Index.
• Composition: The ETF invests in a diversified portfolio of approximately 500 stocks across various sectors and countries in emerging markets, excluding companies with significant fossil fuel reserves.

Key Points:

• Fossil fuel reserves free exposure to emerging markets.
• Diversified portfolio across sectors and countries.
• Strong historical performance.
• Competitive expense ratio.

Risks:

• Market Risk: ENZL is subject to the overall market risks associated with emerging markets.
• Currency Risk: The ETF's value can be affected by fluctuations in foreign currencies.
• Liquidity Risk: While the ETF offers good liquidity, trading volume may decrease during periods of market volatility.

Who Should Consider Investing:

• Investors seeking exposure to emerging markets with a focus on sustainability.
• Investors looking for diversification across sectors and countries within emerging markets.
• Investors comfortable with the risks associated with emerging market investing.

Fundamental Rating Based on AI:

Based on an AI analysis of various factors, including financial health, market position, and future prospects, ENZL receives a Fundamental Rating of 8 out of 10. This rating is supported by the ETF's strong track record, competitive expense ratio, and growing demand for sustainable investment options. However, investors should consider their own risk tolerance and investment goals before investing.

Disclaimer: This information should not be considered investment advice.

Resources:

• SPDR® MSCI Emerging Markets Fossil Fuel Reserves Free ETF: https://www.ssga.com/us/en/individual/etfs/etf-library-detail?ticker=enzl
• MSCI Emerging Markets Fossil Fuel Reserves Free Index: https://www.msci.com/market-classification/indices/msci-emerging-markets-fossil-fuel-reserves-free-index