Analysis

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About FORSTRONG EMERGING MRKTS EQTY ETF ETF UNIT

The fund-of-funds provides diversified exposure to the emerging markets equity space. It gains exposure by investing directly in stocks or indirectly through underlying ETFs that are listed on North American stock exchanges. The portfolio is constructed using an active country, sector, and thematic selection process designed to capitalize on higher volatility and variability of returns typically available in emerging markets. The fund initially utilizes a proprietary country allocation model that consists of long (structural trends, political risk, reform agenda, and valuations), medium (degree of global operating leverage, commodity exposures, financial vulnerability, and credit cycle), and short-term (technical indicators, behavioral analysis, and policy trajectory) factors. A risk analysis framework is also applied to determine the active strategy cash weighting.