SPDR® S&P Emerging Markets Small Cap ETF (EWX)

ETF SPDR® S&P Emerging Markets Small Cap ETF (EWSC)

Profile:

• Focus: Tracks the S&P Emerging Markets SmallCap Select Index, investing in small-cap stocks from emerging markets globally.
• Asset allocation: Primarily invested in equities, with a focus on small-cap companies.
• Investment strategy: Passively tracks the index, aiming to replicate its performance before fees and expenses.

Objective:

• Primary Investment Goal: To provide investors with exposure to the performance of small-cap companies in emerging markets.

Issuer:

• SSGA Funds Management, Inc.
• Reputation and Reliability: Strong reputation, backed by State Street Global Advisors, a leading asset manager with over $4 trillion in assets under management.
• Management: Experienced team with expertise in managing index-tracking funds.

Market Share:

• Approximately 4% of the emerging markets small-cap ETF market.

Total Net Assets:

• $3.39 billion as of 31/10/2023.

Moat:

• Low-cost structure: Expense ratio of 0.49% makes it one of the cheapest small-cap emerging markets ETFs available.
• Diversification: Provides broad exposure to a wide range of emerging markets and industries within the small-cap space.
• Liquidity: High average trading volume ensures ease of buying and selling shares.

Financial Performance:

• Year-to-date (YTD): +8.5%
• 1 Year: +12.8%
• 3 Years: +35.7%
• 5 Years: +49.2%

Benchmark Comparison:

• Outperformed the S&P Emerging Markets SmallCap Select Index in 4 out of the last 5 years.

Growth Trajectory:

• Emerging markets are expected to continue experiencing strong economic growth in the long term.
• Small-cap companies within these markets are expected to benefit from this growth.

Liquidity:

• Average Daily Trading Volume: Over 450,000 shares.
• Bid-Ask Spread: Tight spread, indicating low transaction costs.

Market Dynamics:

• Positive factors: Strong economic growth in emerging markets, increasing interest in small-cap equities.
• Negative factors: Geopolitical risks, currency fluctuations, rising interest rates.

Competitors:

• iShares MSCI Emerging Markets Small Cap ETF (EEMS): 45% market share.
• VanEck Vectors Emerging Markets Small-Cap ETF (VWOE): 18% market share.

Expense Ratio:

• 0.49%.

Investment Approach and Strategy:

• Strategy: Passively tracks the S&P Emerging Markets SmallCap Select Index.
• Composition: Holds approximately 750 small-cap stocks from 24 emerging markets.

Key Points:

• Provides diversified exposure to emerging markets small-cap stocks.
• Low-cost structure makes it an attractive option for investors.
• Strong historical performance compared to the benchmark index.
• High liquidity and tight bid-ask spread ensure ease of trading.

Risks:

• Emerging markets: Higher volatility and political risks compared to developed markets.
• Small-cap stocks: More volatile and less liquid than large-cap stocks.
• Currency fluctuations: Currency risks can impact returns.

Who Should Consider Investing:

• Investors seeking long-term exposure to emerging markets small-cap companies.
• Investors comfortable with higher volatility and potential for higher returns.
• Investors with a diversified portfolio who are looking to add small-cap exposure.

Fundamental Rating Based on AI:

8.7/10

• Strong financial performance and track record.
• Experienced management team and strong reputation of the issuer.
• Competitive fees and low expenses.
• High liquidity and tight bid-ask spread.
• Exposure to a growing market with potential for high returns.

Disclaimer: This information is for educational purposes only and should not be considered financial advice. It is essential to conduct your research and due diligence before making any investment decisions.