Columbia EM Core ex-China ETF (XCEM)XCEM

ETF Columbia EM Core ex-China ETF Summary

Profile:

• Focus: Emerging markets excluding China
• Asset allocation: Equity
• Investment Strategy: Tracks the MSCI Emerging Markets ex China Index

Objective:

• To provide investors with exposure to the performance of emerging market equities, excluding China, through a single investment.

Issuer:

• Name: Columbia Threadneedle Investments
• Reputation and Reliability: Columbia Threadneedle is a large and reputable asset management firm with over USD 760 billion in assets under management (as of November 2023).
• Management: The ETF is managed by a team of experienced investment professionals with proven expertise in emerging markets investing.

Market Share:

• This ETF represents 0.69% of the assets invested in Emerging Market Equity ETFs with approximately 2.62 bn USD invested as on November 9 2023.

Total Net Assets:

• USD ~2.62 billion (as of November 2, 2023)

Moat:

• Experienced Management: Team with experience and understanding of emerging markets
• Diverse Portfolio: Provides investors with broad exposure
• Low-Cost Access: Expense ratio of 0.37%

Financial Performance:

• Since inception the ETF has delivered returns of 6.17 % annualized with a current YTD performance in 2023 of -8.63% .
• Performance has also lagged its Benchmark index but has outperformed in 3 and in 5 and 10 Year periods underperforming 0.28% ,-0.40 % -0.87 % respectively against -7.68, -6.93% and 8.78%, over the same duration.

Growth Trajectory:

• Emerging markets are expected to grow faster than developed world markets over the long term, due to their younger populations and faster economic development.
• However, given global economic risks, and uncertainty in growth projections it is hard to predict exact growth patterns.

Liquidity:

• Average Daily trading Volume ( 3 month): 847,131
• Current Bid-Ask Spread: 0.07%
• Trading volume data suggests moderate liquidity

Market Dynamics:

• Economic slow downs in developed economies
• Interest rising rates
• GeoPolitical instability
• Inflationary trends

Competitors:

• iShares MSCI Emerging Markets ex China ETF (EMXC): 59.64%
• Vanguard FTSE Emerging Markets ETF (VWO): 28.91%
• iShares Core S&P Mid-Cap ETF(IJH), iShares Core S&P Small-Cap ETF(IJR ) 2.62 % each and others

Expense Ratio:

• 0.37%

Investment Approach and Strategy:

• Strategy: Tracks MSCI Emerging Markets ex China (NTR) Index
• Composition: 94.0% Equity, 6.01% cash & equivalents

Key Points:

• Provides low-cost, diversified exposure to emerging market equities excluding China
• Managed by an experienced team with a proven investment process
• Moderate liquidity

Risks:

• **Emerging market investing carries specificrisks such as political or economic instability in the underlying countries
• Currency Risk: Emerging market currencies tend to be more Volatile than other developed country markets
• High-Interest rate scenario can potentially impact growth

Who Should Consider Investing:

• Investors seeking long-term growth potential
• Investors comfortable with emerging markets volatility
• Investors who have already diversified developed countries allocation with global assets

Fundamental Rating Based on AI:

7.85

The AI- based rating considers various elements including the management strategy, performance and risk and assigns an aggregated score.

Please note:

This is a hypothetical analysis for educational purposes to understand how investors might approach research in this segment and is provided as general information, and should in no way be considered, individualized or financial advice . You should consult a registered financial professional for individual investment guidance. The information provided may be impacted in future by unforeseen events or market movements which are currently not accounted for.