Accessing Global EM Opportunities with a Smart Beta ETF | Page 2 of 2 | ETF Trends

The money manager has also partnered up with Virtus ETF Solutions, a unit of Virtus Investment Partners, Inc. (NASDAQ: VRTS), to launch the Virtus Glovista Emerging Markets ETF (NYSEARCA: EMEM) late last year.

EMEM represents a smart beta departure from traditional, cap-weighted emerging markets ETFs, which are usually heavily allocated to small number of countries since EMEM caps single-country allocations at 10%. Additionally, macro, fundamental and momentum factors are used in the securities selection process in EMEM. Stocks from the top five countries are overweighted while the bottom five countries in the fund’s geographic screen are eliminated.

“What the ETF does is that it encapsulates the process that we’ve been using for the last 20 years,” Asilis added.

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