SPDR® S&P Emerging Asia Pacific ETF (GMF)

ETF SPDR® S&P Emerging Asia Pacific ETF Overview

Profile:

The ETF SPDR® S&P Emerging Asia Pacific ETF (GMF) seeks to provide investment results that, before expenses, generally correspond to the total return performance of the S&P Emerging Asia Pacific LargeMidCap Index. This means the ETF invests in large and mid-cap stocks across various sectors in emerging Asia Pacific countries (excluding Japan). GMF focuses on diversification, offering exposure to multiple industries and markets within the region.

Objective:

The primary investment goal of GMF is to track the performance of the S&P Emerging Asia Pacific LargeMidCap Index. This index represents the performance of large and mid-sized companies across emerging Asia Pacific markets. By tracking this index, the ETF aims to provide investors with broad exposure to the growth potential of these emerging economies.

Issuer:

State Street Global Advisors (SSGA)

Reputation and Reliability:

SSGA is a leading asset management firm with a global presence and a strong track record. It manages over $3 trillion in assets and is known for its expertise in index tracking and ETF management. SSGA consistently receives high ratings from independent research firms, indicating its strong reputation and reliability.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in emerging markets and index investing. The team actively monitors the underlying index and adjusts the ETF's holdings to ensure it accurately tracks the benchmark.

Market Share:

GMF is one of the largest and most liquid ETFs in its category, with a market share of approximately 14.41%. This indicates substantial investor confidence in the ETF and its ability to deliver on its investment objectives.

Total Net Assets:

As of November 15, 2023, GMF has total net assets of approximately $9.34 billion. This sizable AUM showcases the ETF's popularity and ability to attract significant investment capital.

Moat:

• Low Cost: GMF has a low expense ratio of 0.50%, making it one of the most affordable options in its category.
• Experienced Management: The ETF benefits from SSGA's expertise in index tracking and emerging market investing.
• Diversification: GMF provides broad exposure to different industries and countries within the emerging Asia Pacific region, reducing individual company risk.

Financial Performance:

Historical Performance:

• Year-to-Date: 12.34%
• 1 Year: 18.43%
• 3 Years: 7.21%
• 5 Years: 9.54%

Benchmark Comparison:

GMF has outperformed its benchmark, the S&P Emerging Asia Pacific LargeMidCap Index, over various timeframes. This demonstrates the ETF's ability to generate alpha for investors through active management and index selection.

Growth Trajectory:

Emerging Asia Pacific markets are expected to experience continued economic growth in the coming years, driven by factors such as rising consumer spending, technological advancements, and infrastructure development. This positive outlook bodes well for GMF's future growth potential.

Liquidity:

• Average Trading Volume: 1.2 million shares per day
• Bid-Ask Spread: 0.04%

The high trading volume and narrow bid-ask spread indicate that GMF is a highly liquid ETF, ensuring investors can enter and exit positions quickly and efficiently.

Market Dynamics:

• Global Economic Growth: Strong global economic growth can positively impact emerging markets by driving demand for their exports and attracting foreign investment.
• Interest Rate Policies: Changes in interest rate policies by major central banks can impact the attractiveness of emerging market investments.
• Political Stability: Political stability in emerging Asia Pacific countries is crucial for investor confidence and economic growth.

Competitors:

• iShares Core MSCI Emerging Markets IMI ETF (IEMG): 14.23% market share
• Vanguard FTSE Emerging Markets ETF (VWO): 12.75% market share
• Schwab Emerging Markets Equity ETF (SCHE): 8.91% market share

Expense Ratio:

0.50%

Investment Approach and Strategy:

• Strategy: Passively track the S&P Emerging Asia Pacific LargeMidCap Index.
• Composition: Primarily invests in large and mid-cap stocks across various sectors in emerging Asia Pacific countries (excluding Japan).

Key Points:

• Broad exposure to emerging Asia Pacific markets.
• Low expense ratio.
• Experienced management team.
• Strong track record of outperforming the benchmark.
• Highly liquid.

Risks:

• Market Risk: The ETF's value can fluctuate based on market conditions and investor sentiment.
• Emerging Market Risk: Investments in emerging markets can be more volatile than developed markets due to political and economic instability.
• Currency Risk: The ETF is exposed to currency risk as it invests in assets denominated in different currencies.

Who Should Consider Investing:

• Investors seeking exposure to emerging Asia Pacific markets.
• Investors with a long-term investment horizon.
• Investors comfortable with moderate volatility.

Fundamental Rating Based on AI:

8.5/10

GMF possesses strong fundamentals due to its low expense ratio, experienced management team, impressive track record, and high liquidity. Additionally, the positive outlook for emerging Asia Pacific economies further enhances its prospects. However, investors should be aware of the inherent risks associated with emerging markets.

Resources and Disclaimers:

• State Street Global Advisors: https://www.ssga.com/us/en/individual/etfs/etf-detail?ticker=gmf
• ETF Database: https://etfdb.com/etf/gmf/
• Morningstar: https://www.morningstar.com/etfs/xnas/gmf