Investors often hear about the diversification benefits of international equities. What they don’t hear are the advantages of tapping international entrepreneurial companies, an asset class available via the ERShares International Equity ETF (NYSEARCA: 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 strong 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.
ERShares selects companies from all over the globe and across capitalization levels to create an eclectic and well-balanced mix in its funds.
In a recent interview with Yahoo Finance, Eva Ados of ERShares explained how international entrepreneurial names are off to strong starts in 2021.
She pointed out that “China is going to lead the way in 2021 and forge ahead into the future. China was the only economy to outperform and grow in terms of GDP by 2.3% while the rest of the world economy shrunk. Relative valuations lean more attractive when it comes to international.”
How does ERSX stand out in this environment? The Entrepreneur Non-US Small Cap Index is comprised of 50 Non-US companies form around the world with market capitalization based between $300 million and $5 billion USD.
“Global Entrepreneurs (ENTIX) are remarkably strong and have appreciated more than 16% YTD and International Entrepreneurs (ERSX) are up 10% YTD, with the S&P 500 close to 0%. Ados examines the most opportunities for growth in Asia with a strict focus on China due to its fast-paced innovation driven by entrepreneurs,” adds ERShares.
For more on entrepreneurial strategies, 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.