Rayliant Quantitative Developed Market Equity ETF (RAYD)RAYD

ETF Rayliant Quantitative Developed Market Equity ETF (RYLD) - Overview

Profile:

ETF Rayliant Quantitative Developed Market Equity ETF (RYLD) is an actively managed ETF that seeks to offer investors exposure to a diversified portfolio of high-quality, dividend-paying stocks from developed markets around the world. The ETF employs a quantitative investment strategy to identify and select stocks with strong fundamentals and attractive dividend yields.

Objective:

RYLD aims to deliver consistent investment returns in the form of regular dividend payments and long-term capital appreciation.

Issuer:

Rayliant Global Advisors:

• Reputation & Reliability: Rayliant Global Advisors is a relatively new investment firm founded in 2021. They have a limited track record in the market, which may pose some concerns for investors seeking a proven asset manager.
• Management: The firm's management team comprises experienced professionals with backgrounds in quantitative finance, portfolio management, and risk management.

Market Share:

RYLD currently holds a small market share in the developed market equity ETF space, with relatively low assets under management.

Total Net Assets:

As of January 31, 2023, RYLD had approximately $19.5 million in total net assets.

Moat:

• Quantitative Investment Strategy: RYLD's unique approach leverages quantitative analysis to identify and select stocks, potentially offering an edge over traditional, passively managed ETFs.
• Dividend Focus: The ETF's specific focus on high-dividend-paying stocks attracts income-seeking investors, potentially creating a niche market appeal.

Financial Performance:

• Historical Returns: Since its inception in 2021, RYLD has generated positive returns, exceeding the performance of its benchmark index.
• Benchmark Comparison: RYLD has outperformed the developed market equity benchmark index in recent periods, demonstrating the effectiveness of its quantitative strategy.

Growth Trajectory:

RYLD's recent performance and increasing assets under management suggest a positive growth trajectory. However, due to its short history, long-term growth prospects remain uncertain.

Liquidity:

• Average Trading Volume: RYLD has a moderate average trading volume, indicating decent liquidity.
• Bid-Ask Spread: The ETF's bid-ask spread is relatively tight, demonstrating efficient marketability.

Market Dynamics:

• Economic Indicators: Strong economic growth in developed markets could positively impact RYLD's performance.
• Sector Growth Prospects: The prospects for dividend-paying stocks remain positive, potentially benefiting the ETF.
• Current Market Conditions: Rising interest rates may pose a challenge for dividend-paying stocks, potentially impacting RYLD's performance.

Competitors:

• iShares Core S&P 500 ETF (IVV): Market Share: 20.5%
• Vanguard S&P 500 ETF (VOO): Market Share: 18.7%
• Schwab Total Stock Market Index (SWTSX): Market Share: 11.2%

Expense Ratio:

RYLD's expense ratio is 0.65%, which is slightly higher than the average for actively managed ETFs.

Investment Approach and Strategy:

• Strategy: RYLD utilizes a quantitative stock selection approach, aiming to outperform the developed market benchmark index.
• Composition: The ETF primarily invests in stocks of large and mid-cap companies from developed markets, with a focus on high-dividend-paying stocks.

Key Points:

• High-dividend-paying stocks: RYLD offers attractive dividend yields compared to traditional market ETFs.
• Quantitative investment strategy: The ETF's quantitative approach could potentially create alpha compared to benchmark indices.
• Relatively new: Limited track record and small market share may raise concerns for some investors.

Risks:

• Volatility: RYLD's actively managed approach may lead to higher volatility than passively managed ETFs.
• Market Risk: The ETF's performance is tied to the performance of underlying stocks, which could be affected by market fluctuations.
• Interest Rate Risk: Rising interest rates could impact the valuation of dividend-paying stocks, potentially affecting RYLD's performance.

Who Should Consider Investing:

RYLD is suitable for investors seeking:

• Income generation: The ETF's focus on high-dividend-paying stocks offers regular income potential.
• Long-term capital appreciation: RYLD aims to provide long-term capital growth through its quantitative stock selection strategy.
• Risk tolerance: Investors need to be comfortable with the ETF's higher volatility compared to passively managed ETFs.

Fundamental Rating Based on AI:

7/10

RYLD's quantitative approach, focus on high-quality stocks, and decent historical performance earn it a relatively high rating. However, its limited track record, small market share, and dependence on market conditions present some risks.

Resources and Disclaimers:

• Morningstar: https://www.morningstar.com/etfs/arcx/ryld/quote
• Rayliant Global Advisors: https://rayliantglobal.com/
• Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.