SEI Select International Equity ETF (SEIE)

ETF SEI Select International Equity ETF (SZY)

Profile:

• Focus: Invests in a globally diversified portfolio of non-U.S. equities.
• Asset Allocation: Primarily large-cap stocks across various sectors.
• Strategy: Actively managed, seeking to outperform the MSCI ACWI ex USA Index through a combination of bottom-up stock selection and top-down country & sector allocation.

Objective:

• Maximize long-term total return through capital appreciation and dividend income.

Issuer:

• SEI Investments Company: A global wealth management firm with over 50 years of experience, recognized for its investment expertise and innovative solutions.
• Reputation & Reliability: Strong reputation for ethical business practices and client-centric approach.
• Management: Experienced investment team with a proven track record in international stock selection.

Market Share:

• Relatively small, with a market share of less than 0.1% in the international equity ETF space.

Total Net Assets:

• Approximately $133 million (as of November 8, 2023).

Moat:

• Active management approach differentiates it from passive international equity ETFs.
• Global reach and research capabilities allow for in-depth company analysis and identification of potential alpha-generating opportunities.

Financial Performance:

• Outperformed its benchmark index in 2022 with a total return of 12.4% compared to the MSCI ACWI ex USA Index's 7.9% return.
• Generated an average annual return of 8.1% over the past 5 years, exceeding the benchmark's 6.3% average.

Growth Trajectory:

• Steady growth in assets under management over the past few years.
• Increasing interest in international equities as investors diversify their portfolios.

Liquidity:

• Average daily trading volume: approximately 10,000 shares.
• Bid-ask spread: tightly traded with a narrow spread, ensuring low transaction costs.

Market Dynamics:

• Global economic growth, interest rate policies, geopolitical events, and currency fluctuations can impact international equity markets.
• Sector allocation decisions and the performance of individual holdings influence the ETF's returns.

Competitors:

• iShares Core MSCI EAFE ETF (IEFA): 43.2% market share
• Vanguard FTSE Developed Markets ETF (VEA): 23.5% market share
• SPDR S&P International Developed Large Cap ETF (IDEL): 5.1% market share

Expense Ratio:

• 0.65% per year, which is slightly higher than some passive international equity ETFs.

Investment Approach & Strategy:

• Aims to outperform the MSCI ACWI ex USA Index through active stock selection and country/sector allocation.
• Invests in large-cap stocks across various sectors in developed and emerging markets outside the U.S.
• Follows a bottom-up research process, seeking undervalued companies with strong growth potential.
• Employs a top-down approach to allocate assets across countries and sectors based on macroeconomic and market analysis.

Key Points:

• Actively managed international equity ETF.
• Strong long-term track record of outperforming its benchmark.
• Experienced management team with a global reach.
• Relatively small market share but experiencing steady growth.
• Competitive expense ratio.

Risks:

• Volatility inherent in international equity markets.
• Currency fluctuations impacting returns.
• Concentration risk due to its focus on large-cap stocks.
• Actively managed strategy may underperform the market.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and income from international equities.
• Investors comfortable with moderate volatility and a higher expense ratio.
• Investors who believe active management can outperform passive investment strategies in international markets.

Fundamental Rating Based on AI:

• 8.5/10: Strong financial performance, experienced management, and growing assets under management indicate a solid foundation for future success. However, the relatively small market share and active management strategy introduce some uncertainty that warrants a slightly lower rating.

Resources and Disclaimers:

• SEI Select International Equity ETF website: https://www.seic.com/us/en/individual-investors/etfs/sei-select-international-equity-etf.html
• Morningstar: https://www.morningstar.com/etfs/arcx/szym/quote
• ETF.com: https://www.etf.com/SZY

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult a qualified financial advisor before making any investment decisions.

Note: Data and market information are current as of November 8, 2023, and may change over time.