Emerging Markets and Multi-Factor ETFs

By Senior Investment Analyst, John Koch on August 21, 2018

Emerging markets have been in the news lately and for all the wrong reasons (I’m looking at you, Turkey). Even given this short-term turbulence, emerging markets (EM) equities still hold a place in our strategic iSectors Global Equity Allocation. 

Historically, we had split our EM exposure into two buckets: broad EM index funds and EM dividend funds. After extensive research in the 2nd quarter of this year, we determined that a vanilla EM index is not the most optimal way to gain exposure to emerging markets, at least in terms of risk-adjusted returns and correlation to global markets.