Cameron Hurst Goldman Sachs ActiveBeta Em Mkts Equity ETF GEM-N DON'T BUY Oct 10, 2018

Emerging markets are breaking out from a long-term, 5-7 years, sideways move. The valuation on this is really interesting. The weighted average P/E ratio is 13.7. It is about 70% Asia, and more specifically about a quarter is China. Has had a good run being up about 25% in 12 months, but thinks that will continue.

A lot of ETF’s are static in nature, and are truly passive, 30% China, 30% Russia, 20% India, etc. What is attractive about this one is that you have the bright minds in Goldman Sachs. It is an actively managed ETF. They are not just statically buying a basket, they could go to 0% China if they wanted. MER is only 20 basis points.

(A Top Pick Feb. 27/17, Up 28%). Low MER and has held up during the recent dip. Has held it for a while. Emerging markets ETFs have done especially well.

It weights stocks by risk factor, like low volatility and momentum. The smart Beta phenomenon has come into force in ETFs. As a macro investor, he likes pure beta. Prefers picking stocks by picking themes, trends, sectors and countries. A fine ETF, but prefers accessing emerging markets by picking countries and sectors instead.

He really likes the emerging markets. If you missed buying into them earlier, now is a good time given all the tariffs and the strong U.S. dollar. Last year, the MSCI was double the valuation of the U.S. market, and today it is half. You can see a 18% growth rate.