GDP growth in emerging markets has failed to translate into earnings per share growth — and consequently, returns. But, all emerging markets are not created equal. Investors may be surprised to learn that the leading source of return and diversification within EM is actually China. As China becomes a larger component within EM and global flows move away from the U.S. and Europe, now is the time to examine your EM exposure and consider a dedicated China allocation.
In the upcoming webcast, Emerging Markets: The Triumph of Hope Over Experience, Jason Hsu, founder and CIO of Rayliant Global Advisors; Phillip Wool, managing director and head of investment solutions at Rayliant Global Advisors; and Jason Blackwell, chief investment strategist at The Colony Group, will discuss how investors can participate in the Chinese market’s continued expansion and explain how novel aspects of China’s markets including, regulations, state ownership, and retail investor behavior, can create significant alpha opportunities.
For example, the Rayliant Quantamental Emerging Market Equity ETF (RAYE) can help investors gain broad exposure to developing economies. The Rayliant Quantamental Emerging Market Equity ETF is an active strategy that employs big data and sophisticated quantitative models to identify investment opportunities in emerging market stocks traded around the world. The resulting portfolio is designed to capture emerging markets’ growth, reduce risk, and exploit behavioral bias to outperform a passive approach.
Additionally, the more targeted Rayliant Quantamental China Equity ETF (RAYC) can help investors focus on China. The Rayliant Quantamental China Equity ETF is an active portfolio employing a systematic approach to harvesting behavioral alpha by exploiting mispricings among Chinese stocks traded in markets around the world. The strategy is localized to China, applying specialized data and models capturing features that make Chinese markets unique, including novel aspects of China’s accounting, regulations, market structure, state ownership, and investor behavior.
Financial advisors who are interested in learning more about emerging markets can register for the Monday, August 29 webcast here.