Home to 711 stocks, DEMG uses a multi-factor approach that also encompasses low volatility, momentum and size in addition to quality and value.
Related: A Surging Smart Beta Small-Cap ETF
Although emerging markets exchange traded funds are among this year’s most prolific asset gatherers in the U.S., some market observers argue that emerging markets equities are under-owned by big investors and that the asset class has more room to rally. The weaker dollar is helping as well.
DEMG allocates a quarter of its combined weight to financial services and industrial names while the materials and technology sectors combine for 21%. Consumer stocks have been key contributors to emerging markets upside this year and DEMG offers some exposure to that theme with the two consumer sectors accounting for over 15% of the fund’s roster.
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