Top country weights include Taiwan 11.9%, China 11.5%, Korea 9.7%, India 9.5%, Malaysia 8.7%, Thailand 6.5%, South Africa 6.4%, Philippines 5.2%, Mexico 4.9% and Indonesia 4.7%.
Compared to the benchmark MSCI Emerging Markets index, CEZ underweights China. Additionally, the new emerging market fund has smaller allocations in Brazil and Russia, which have both experienced volatile swings in response to depressed commodity prices.[related_stories]
Top holdings include Chunghwa Telecom 0.7%, Hong Leong Bank 0.6%, Taiwan Cooperative Financial Holdings 0.5%, Banco de Chile 0.5% and First Financial Holding 0.5%.
Potential investors should note that the low-volatility factor may help CEZ exhibit lower drawdowns during market turns. However, due to the more conservative nature of the low-volatility strategy, the ETF may lag behind during a sustained bull market rally.
CEZ follows the launch of two developed international ETFs that also follow the volatility weighted indexing methodology, including the the Compass EMP International 500 Volatility Weighted Index ETF (NasdaqGM: CIL) and Compass EMP International High Dividend 100 Volatility Weighted Index ETF (NasdaqGM: CID), which began trading in August 2015.