STXE Profile
The Strive Emerging Markets Ex-China ETF is designed to provide investors with exposure to large and mid-cap equity securities from 24 emerging market economies, intentionally excluding China. The fund tracks an index that encompasses a broad range of emerging market countries, reflecting the diverse economic and financial landscapes of these regions. This strategic focus allows investors to gain targeted access to emerging markets while avoiding exposure to China, which can be beneficial for those seeking to diversify their international investments.
Under normal market conditions, the fund commits at least 80% of its total assets, excluding any collateral from securities lending, to the emerging market securities that comprise the index. This substantial allocation ensures a strong correlation with the performance of the underlying index. The securities included in the fund may consist of depositary receipts, such as American Depository Receipts (ADRs) or Global Depository Receipts (GDRs), which represent equity interests in companies listed in the target emerging markets.
The ETF's approach targets large and mid-cap companies, which typically offer a balance between growth potential and market stability. By excluding China from its investment universe, the fund specifically tailors its exposure to other high-growth emerging markets, which may provide different opportunities and risks compared to the Chinese market. This focus aligns with strategies aimed at capitalizing on the growth trajectories of various emerging economies while managing geopolitical and market-specific risks associated with China.
Investors in the Strive Emerging Markets Ex-China ETF benefit from a diversified portfolio of equities from a wide range of emerging economies, enhancing potential returns while mitigating specific regional risks. The fund's exclusion of China reflects a strategic decision to concentrate on other high-potential markets, offering an investment option for those seeking to navigate the complexities of global emerging markets with a particular emphasis on non-Chinese opportunities. As with any investment, it is essential for investors to assess how the fund aligns with their overall investment strategy and risk tolerance.
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