Dr. Jason Hsu, Chairman and CIO of Rayliant Global Advisors, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss quantamental investing in emerging markets equities.
The Rayliant Quantamental ETF Series offers active exposures to international and emerging equity markets with fundamental views expressed using big data and quantitative models. Rayliant deploys machine learning to investigate the predictive power of 100 factors.
Deploying a fundamental process using quantitative models allows Rayliant to cover thirty different emerging market countries with a unified process without having a team in each country. In addition to efficiently analyzing thousands of stocks, quantitative models take the emotion out of investing. The models deploy a bottoms-up stock selection process, which can overweight specific industries and countries.
The four ETFs in the series include Rayliant Quantamental Emerging Markets ex-China Equity ETF (RAYE), Rayliant Quantitative Developed Market Equity ETF (RAYD), Rayliant SMDAM Japan Equity ETF (RAYJ), and Rayliant Quantamental China Equity ETF (RAYC). Investors tend to use the emerging markets and country-specific funds as smaller satellite allocations, allocating up to 10% in a combination of China and emerging markets ex-China exposure.
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