Emerging Market Equity Segmentation

The argument around including Emerging Market Equity into a portfolio has migrated from being one of Diversification onto one of capturing Economic Growth.

If you search in the database you will se that we have segmented all ETPs into sub-groups:

A. Passive Broad based that holds ETPs that has a Passive Broad based selection policy and generally weights constituents according to free-float market capitalization.

B. Qualitative Enhancement or Filter contains ETPs that Screen Constituents according to more Qualitative filters like Sector, Size or Fundamental Qualitative criteria’s.

C. Quantitative Enhancement or Filter contains ETPs that Screen Constituents according to more Quantitative filters like Volatility or Relative Strength.

It is our hope users sees the value in being able to quickly drill down an ever expanding product space according to such criteria.

The Passive approach is by far the most dominant methodology and ETPs here are mainly based on the MSCI Emerging Market Index, an index that also has Derivatives attached.

Other Indices are from FTSE or Dow Jones, and they mainly differ in MSCI’s inclusion of South Korea as an emerging markets constituent. Other index providers like FTSE excludes South Korea from its emerging markets.

Passive Broad Based

Qualitative Enhancements Or Filters

Quantitative Enhancements Or Filters

Thematic

Leveraged, Inverse & Inverse Leveraged

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Comments

Good stuff.

Johnni Nielsen's picture

Good stuff.

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