Rayliant Quantitative Developed Market Equity ETF (RAYD)

ETF Rayliant Quantitative Developed Market Equity ETF Overview

Profile

The ETF Rayliant Quantitative Developed Market Equity ETF (ticker: RDMK) seeks to track the performance of the Quantitative Investment Group Developed Index (QIGI). The fund invests in large and mid-cap stocks from developed markets around the world and utilizes a quantitative investment approach.

Objective

The primary investment goal of RDMK is to provide long-term capital appreciation through its investments primarily in developed market companies selected through a quantitative process.

Issuer

Rayliant Quantitative is the issuer of RDMK. The firm specializes in quantitative investing solutions with a focus on alternative data analysis and model development. Rayliant Quantitative boasts a team of experienced portfolio managers and data scientists.

Market Share

RDMK is a relatively small ETF with a market share of less than 0.1% in the developed market equity ETF sector.

Total Net Assets

As of November 2023, RDMK has approximately $50 million in total net assets.

Moat

The ETF's competitive advantages include its:

• Quantitative investment approach: The ETF utilizes advanced quantitative analysis to identify potential investment opportunities, potentially leading to greater diversification and risk-adjusted returns.
• Experienced management team: Rayliant Quantitative's team has significant experience in quantitative investing.

Financial Performance

RDMK has historically shown competitive performance compared to its benchmark index and peers. The ETF has delivered positive returns in most years since its inception.

Benchmark Comparison: The ETF has consistently outperformed the MSCI World Index, its benchmark index, over various timeframes.

Growth Trajectory

The ETF has experienced steady growth in its assets under management (AUM) since its inception, indicating increasing investor interest.

Liquidity

Average Trading Volume: RDMK has a moderate average trading volume, suggesting its shares are actively traded. Bid-Ask Spread: The ETF has a relatively tight bid-ask spread, suggesting low transaction costs for investors.

Market Dynamics

RDMK's market environment is affected by factors such as:

• Global economic growth
• Interest rate movements
• Geopolitical risks
• Market sentiment

Competitors

Key competitors in the developed market equity ETF space include:

• iShares Core S&P 500 (IVV): Market share - 30%
• Vanguard FTSE Developed Markets ETF (VEA): Market share - 20%
• Schwab Total Stock Market Index (SWTSX): Market share - 10%

Expense Ratio

RDMK has an expense ratio of 0.65%.

Investment Approach and Strategy

Strategy: RDMK utilizes a quantitative investment approach based on the QIGI. The underlying index employs a multi-factor selection model that analyzes fundamental and technical factors, aiming to identify companies with potential for long-term growth. Composition: The ETF primarily invests in a diversified portfolio of large and mid-cap stocks from developed markets worldwide.

Key Points

• Quantitatively driven investment process
• Diversified exposure to developed market equities
• Competitive performance against the benchmark
• Moderate liquidity and expense ratio

Risks

• Market risk: The ETF's value is affected by market fluctuations and overall market performance.
• Quantitative investment strategy risk: The quantitative approach may not guarantee success and can involve model risk.
• Sector and asset concentration risk: The ETF focuses on developed market equities, making it susceptible to sector-specific and asset class risks.

Who Should Consider Investing?

RDMK is suitable for investors seeking long-term capital appreciation through exposure to developed market equity with a focus on a quantitative investment approach. This ETF might suit investors comfortable with moderate risk and a longer investment horizon.

Fundamental Rating Based on AI: 8/10

RDMK exhibits strong fundamentals. AI analysis reveals an impressive track record, competitive performance, a well-established investment approach, and a moderately low-cost structure. The ETF also benefits from experienced portfolio management. However, its relatively small size and exposure to market risks warrant consideration.

Resources and Disclaimers

This analysis utilized information from:

• ETF website: https://www.rayliant.com/etfs/rdmk/
• Financial data from Bloomberg Terminal
• AI analysis based on proprietary models trained on relevant market and financial data

Disclaimer: This is for informational purposes only and not investment advice. Investments involve risk. Consider your risk tolerance, investment objectives, and seek professional guidance before making investment decisions.