John DeGoeySphere FTSE Emerging Sustainable Yield ETFSHZ.TOCOMMENTNov 11, 2019

Emerging market exposure. South Korea is not in all emerging market indexes / ETFs. Emerging markets are getting cheaper. He is just starting to nibble in emerging markets. They will underperform for about 6 to 12 months.

(He’s been telling people for years that they should be buying more emerging markets. Tonight, he is giving 3 different ways to play the same theme.) This one started trading about 6 months ago and is focused on sustainable yield. It is small. The important thing is, it has a sustainable yield as part of its methodology. That is the value screen. He is a proponent of factor investing.

This has a sustainable overlay to their investment strategy, which makes it a little unique. He believes emerging markets is the place he wants to be starting to allocate a little bit of money. His only question is whether this company will be successful and reach a critical mass, but he doesn’t know the company that well. (See Top Picks.)

A product that was only launched a few months ago. This is a good way to screen for de facto values. As a complement to VEE-T, VEE is diversified emerging markets, and this has more of a value screen.

This is a new product, about 2 months old. It is basically a value tilt. Value stocks historically outperform the market.

He is a big fan of emerging markets in general. The thing about Sphere is that they have quality screens. You’re getting exposure to emerging markets with the sustainable yield as basically being a value tilt. You are getting a chance to be a value investor while investing in emerging markets.