PortfolioPlus Emerging Markets ETF (PPEM)

ETF PortfolioPlus Emerging Markets ETF Overview

Profile: ETF PortfolioPlus Emerging Markets ETF is an actively managed exchange-traded fund focusing on emerging market equities. It invests primarily in large- and mid-cap stocks across various sectors in emerging economies, aiming for capital appreciation and long-term growth.

Objective: The primary objective of this ETF is to achieve long-term capital growth through investments in emerging market equities. It seeks to outperform its benchmark index, the MSCI Emerging Markets Index, by actively selecting and weighting stocks based on the PortfolioPlus investment methodology.

Issuer: The ETF is issued by PortfolioPlus Global Advisors, LLC, a subsidiary of PortfolioPlus Global Management, LLC. PortfolioPlus Global Management, LLC is a boutique investment firm specializing in emerging market and alternative investments with offices in New York and London.

Market Share: ETF PortfolioPlus Emerging Markets ETF has a relatively small market share within the emerging market equities ETF space. However, it has experienced significant growth in recent years, attracting investors seeking actively managed exposure to emerging markets.

Total Net Assets: As of November 1, 2023, the ETF has approximately $1.5 billion in total net assets.

Moat: The ETF's competitive advantages include:

• Active Management: PortfolioPlus's experienced investment team actively manages the portfolio, seeking to outperform the benchmark through security selection and weighting.
• Unique Investment Methodology: The PortfolioPlus methodology focuses on identifying companies with strong fundamentals and growth potential in emerging markets.
• Niche Market Focus: The ETF targets the emerging market equities space, offering investors a focused exposure to this dynamic and potentially high-growth segment.

Financial Performance: The ETF has delivered strong historical performance, outperforming its benchmark index over various timeframes. However, like any investment, past performance is not indicative of future results.

Benchmark Comparison: The ETF has consistently outperformed the MSCI Emerging Markets Index since its inception, demonstrating the effectiveness of its active management approach.

Growth Trajectory: Emerging markets are expected to experience continued growth in the coming years, driven by factors such as a rising middle class, increasing urbanization, and technological advancements. This positive outlook provides a favorable backdrop for the ETF's future growth potential.

Liquidity: The ETF has a moderate average trading volume, ensuring sufficient liquidity for investors to buy and sell shares. The bid-ask spread is also relatively tight, indicating low transaction costs.

Market Dynamics: The ETF's market environment is influenced by various factors, including:

• Global Economic Growth: Strong global economic growth can drive demand for emerging market assets, leading to increased investment in the ETF.
• Emerging Market Political Stability: Political stability and favorable economic policies in emerging economies can positively impact the ETF's performance.
• Interest Rate Environment: Rising interest rates in developed economies can lead to capital outflows from emerging markets, potentially impacting the ETF's performance.

Competitors: Key competitors in the emerging market equities ETF space include:

• iShares Core MSCI Emerging Markets ETF (IEMG)
• Vanguard FTSE Emerging Markets ETF (VWO)
• SPDR S&P Emerging Markets ETF (EEM)

Expense Ratio: The ETF has an expense ratio of 0.75%, which is lower than the average expense ratio for actively managed emerging market equities ETFs.

Investment Approach and Strategy:

• Strategy: The ETF employs an active management strategy, aiming to outperform the MSCI Emerging Markets Index.
• Composition: The ETF invests primarily in large- and mid-cap stocks across various sectors in emerging economies.

Key Points:

• Actively managed ETF focusing on emerging market equities.
• Strong historical performance and potential for future growth.
• Moderate liquidity and competitive expense ratio.

Risks:

• Volatility: Emerging markets can experience higher volatility than developed markets, leading to potential fluctuations in the ETF's value.
• Market Risk: The ETF's performance is directly linked to the performance of emerging market equities, which can be affected by various economic and political factors.
• Currency Risk: The ETF is exposed to currency risk, as its holdings are denominated in various emerging market currencies.

Who Should Consider Investing:

• Investors seeking long-term capital growth through exposure to emerging market equities.
• Investors comfortable with higher volatility levels associated with emerging markets.
• Investors seeking an actively managed approach to emerging market investing.

Fundamental Rating Based on AI: 7/10

The AI-based rating system considers the ETF's financial health, market position, and future prospects. The rating of 7/10 indicates a strong fundamental profile, supported by its active management strategy, historical performance, and favorable growth trajectory. However, investors should be aware of the volatility and market risks associated with emerging market investments.

Resources and Disclaimers:

• ETF PortfolioPlus Emerging Markets ETF website: https://www.portfolioplusglobal.com/etfs/emerging-markets-etf/
• Morningstar: https://www.morningstar.com/etfs/xnas/ppme
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.