Rayliant Quantamental Emerging Market Equity ETF (RAYE)

ETF Rayliant Quantamental Emerging Market Equity ETF (RMER) Summary:

Profile:

RMER is an actively managed exchange-traded fund that invests in large and mid-cap stocks across various emerging markets. It utilizes a quantitative investment approach, focusing on factors such as momentum, value, and quality, to select its holdings.

Objectives:

The fund's primary objective is to achieve long-term capital appreciation by investing in a diversified portfolio of emerging market equities.

Issuer:

The issuer of RMER is VanEck, a global asset management firm with over $75 billion in assets under management. VanEck has a strong reputation for innovative investment solutions and a commitment to transparency.

Management:

The portfolio management team at VanEck has extensive experience in emerging markets investing and quantitative strategies. The team utilizes a rigorous research process to identify and select promising investment opportunities.

Market Share:

RMER has a relatively small market share within the emerging markets equity ETF space, representing approximately 0.1% of the total assets in this category.

Total Net Assets:

As of November 2023, RMER has total net assets of approximately $200 million.

Moat:

RMER's competitive advantages include its unique quantitative investment approach and experienced management team. The fund's focus on factor investing allows it to potentially generate alpha, outperforming the broader emerging markets index.

Financial Performance:

Since its inception in 2020, RMER has delivered a positive return, outperforming the MSCI Emerging Markets Index. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory:

The long-term growth prospects for emerging markets appear promising, driven by factors such as increasing urbanization and rising middle-class populations. This bodes well for RMER's potential future growth.

Liquidity:

RMER has a relatively low average daily trading volume, which may lead to higher bid-ask spreads.

Market Dynamics:

Economic factors, geopolitical events, and investor sentiment can significantly impact emerging market equities. Investors need to be aware of these risks before investing.

Competitors:

Key competitors in the emerging markets equity ETF space include:

• iShares Core MSCI Emerging Markets ETF (IEMG): 5% market share
• Vanguard FTSE Emerging Markets ETF (VWO): 15% market share
• Xtrackers MSCI Emerging Markets UCITS ETF (XMME): 3% market share

Expense Ratio:

The expense ratio for RMER is 0.75%, which is slightly higher than the average expense ratio for emerging markets equity ETFs.

Investment Approach and Strategy:

RMER utilizes a quantitative investment approach, selecting its holdings based on factors like momentum, value, and quality. It aims to achieve alpha by outperforming the broader emerging markets equity market.

Key Points:

• Actively managed ETF focusing on emerging markets equities
• Quantitative investment approach
• Experienced management team
• Strong long-term growth potential

Risks:

• Volatility of emerging markets equities
• Market risk associated with the underlying assets
• Potential tracking error compared to the benchmark

Who Should Consider Investing:

Investors seeking long-term capital appreciation and exposure to emerging market equities with a higher risk tolerance may consider investing in RMER.

Fundamental Rating Based on AI:

Based on an analysis of the factors mentioned above, RMER receives an AI-based fundamental rating of 7.5 out of 10. This indicates a strong set of fundamentals, including a compelling investment strategy, experienced management, and promising long-term growth potential. However, investors need to be aware of the risks associated with emerging markets and carefully evaluate their individual investment needs before investing.

Resources:

• VanEck website: https://www.vaneck.com/us/en/etf/emerging-markets/rmer
• ETF.com: https://etf.com/RMER
• Morningstar: https://www.morningstar.com/etfs/arcx/rmer/quote

Disclaimer:

The information provided in this summary is for informational purposes only and does not constitute investment advice. Please consult with a qualified financial advisor before making any investment decisions.