XCEM Profile
The Columbia EM Core ex-China ETF is strategically focused on providing investors with comprehensive equity exposure to emerging markets, excluding companies based in China and Hong Kong. The fund is committed to investing at least 80% of its net assets in securities that are components of its underlying index. Typically, the fund maintains a substantial investment position, often exceeding 95% of its net assets in these index securities, ensuring a robust alignment with the index's performance.
The underlying index is meticulously designed to offer broad exposure to the emerging markets by tracking the performance of up to 700 companies from various emerging economies, excluding those domiciled or listed in China and Hong Kong. This index captures a diverse range of sectors and industries within the emerging markets, thereby providing a comprehensive view of the economic dynamics in these regions. The focus on excluding China and Hong Kong allows for a specific investment strategy aimed at capitalizing on growth opportunities in other emerging markets.
Emerging markets are known for their high growth potential and volatility, and this fund seeks to harness these opportunities while avoiding the significant economic and regulatory influences specific to China and Hong Kong. By excluding these markets, the fund allows investors to gain exposure to a diverse set of emerging economies that are experiencing rapid economic expansion and development.
Given its non-diversified nature and focused strategy, the Columbia EM Core ex-China ETF is suited for investors seeking targeted exposure to emerging markets outside of China and Hong Kong. This approach can provide a unique opportunity to benefit from the growth of emerging economies while avoiding the specific risks associated with Chinese and Hong Kong markets. The fund’s strategic positioning and substantial investment in the index securities aim to deliver a performance profile closely aligned with the core emerging markets exposure as defined by the index.
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