Small caps are potent and international equities are again capturing investors’ attention. Market participants can capitalize on both trends at once with the ERShares NextGen Entrepreneurs ETF (ERSX).
ERSX selects the most entrepreneurial, primarily Non-US Small Cap companies, that meet the thresholds embedded in its proprietary Entrepreneur Factor (EF). ERShares’ ETF delivers compelling performance across a variety of investment strategies without disrupting investors’ underlying risk profile metrics. Their geographic diversity enables them to harness global advantages through additional returns associated with currency fluctuations, strategic geographic allocations, comparative trade imbalances, and relative supply/demand strengths.
In a recent appearance on Bloomberg, ERShares’ COO and Chief Investment Strategist Eva Ados highlighted the strength in ex-US markets.
“She states that the spotlight goes to international equities, especially in China. Equities in China hold valuations much lower with P/E ratios of 16 in comparison to the U.S. P/E ratios of 23. There is a big differential between valuations in the U.S. tech industry (P/E = 68) compared to the international compass,” according to ERShares.
ERSX: The Right Fund at the Right Time
ERShares selects companies from all over the globe and across capitalization levels to create an eclectic and well-balanced mix in its funds.
“Ados mentions China as the only economy that had a positive GDP growth (2.3%) in 2020 when the rest of the global economy shrunk. With its sharp momentum, China shows expected growth this year. The ETF Fund flows indicate a continuous move to the international markets,” continues ERShares.
ERSX tracks a fundamental-selected index of global small cap ex-US equities weighted by market capitalization. The fund’s index is benchmarked against the FTSE All-World Ex-US Small Cap Index, a market-capitalization weighted index representing small cap stocks’ performance in developed and emerging markets excluding the US. The index is derived from the FTSE Global Equity Index Series (GEIS), which covers 98% of the world’s investable market capitalization.
“Ados highlights that despite the strengthening regulatory framework in China, ERShares eyes pure-play, more nimble Chinese entrepreneurial companies backed by kingmakers,” concludes issuer. “ERShares recognizes an improvement in international and U.S. markets especially in small caps.”
For more investing ideas, visit our Entrepreneur ETF Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.