“The survey empirically reveals growing optimism among EM investors and a willingness to utilize strategic [smart]beta portfolios to capitalize on EM’s key growth drivers,” Marc Zeitoun, Chief Product and Marketing Officer at Emerging Global Advisors, said in a press release. “These results validate what we had described in our Strategic Beta In Emerging Markets thought piece, published earlier this year. By implementing a rules-based process that reflects the systemization of alpha drivers, strategic beta strategies can cost-efficiently add alpha.”
Related: Investors Jump on Emerging Market ETFs in Search for Yield
For instance, EGShares EM Quality Dividend ETF (NYSEArca: HILO), which provides a play on dividend-paying companies from developing markets, has outperformed in 2016, increasing 17.8% year-to-date, compared to the benchmark MSCI Emerging Market Index’s 11.8% gain.
HILO follows an equal-weighted index that includes about 50 emerging market companies with a higher dividend yield than the average dividend yield in the EGAI developing Markets universe. The fund shows a 3.03% 12-month yield and has a 0.85% expense ratio.
Click here to read the full story on ETF Trends.