Rayliant Quantamental Emerging Market ex-China Equity ETF

RAYE

Market cap $78.9M

Emerging markets equity returns have been driven by extreme mega-cap concentration, with index breadth collapsing to historic lows and masking weakness across much of the opportunity set. This concentration has distorted relative results for active managers, particularly those constrained by diversification rules or broad benchmarks, as small-cap underperformance and index construction limit flexibility.

It's been a head-spinning week for ETF investors monitoring geopolitical risks to stocks in their portfolios.

On Thursday, Rayliant brought its fourth ETF to market with the launch of the Rayliant SMDAM Japan Equity ETF (NYSE Arca: RAYJ). The fund invests in mid- and large-cap companies domiciled in Japan or that have a significant business presence there.

Some asset managers may decide it's worthwhile to hand over some of the revenue that their exchange-traded funds collect via Fidelity Investments' brokerage platform to pay for its support agreement — if they haven't decided to do so already.

Emerging market ETF investing can gain steam this year due to undervaluation, likely halt in Fed rate hikes, falling EM inflation and higher growth rates (than developed economies).