Volatility Weighting: An Innovative Approach to Accessing Emerging Market Equities

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With CEY, investors are offered a balanced approach to EM investing with income-generating equities as opposed to the traditional cap-weighted methodologies that typically incorporate only the largest companies or highest-yielding sectors.

While investing in emerging markets pose their own inherent risks, using the strategies in CEZ or CEY has a due diligence component to help give investors confidence that their capital is allocated into quality equities, which is important in the wake of 2018’s nerve-wracking year-end volatility.

“People still realize it’s a volatile asset class but investing in emerging markets through CEZ or CEY where it’s volatility-weighted can help give them a little more comfort,” said Dhillon.

According to Yahoo Finance performance numbers, CEZ is up 7.52 percent year-to-date while CEY is up 13.97 percent thus far in 2019.

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