Accessing Global EM Opportunities with a Smart Beta ETF | ETF Trends

The emerging markets are beginning to stand out on the global stage, outperforming developed markets, and exchange traded fund investors are jumping on the opportunity.

For instance, Glovista Investments sees potential growth in the emerging market equity story. Their strategy involves a global macro approach to emerging markets with a deep value tilt, combining a top-down macro approach with quantitative bottom-up-analysis.

“Most academic and industry studies have shown that upwards of 50% of alpha that you can generate in emerging market equities derives from macro factors, so that’s the differentiating factor and the main focus of our approach,” Carlos Asilis, CIO and Co-Founder of Glovista Investment, said at the Inside ETFs 2018 conference.

Glovista’s strategy is implemented entirely using large liquid US-listed country & sector ETFs and ADRs. The typical portfolio consists of 90% to 95% allocation to country ETFs that represent more than 400 underlying stocks.