Emerging Markets Equity Select ETF
ALTAR
Score™
11.5% info Recommen-
dation
SPECULATIVE
2020E    2021E
P/E
ratio
11.7x P/Sales
ratio
0.8x
P/BV
ratio
1.0x Div.
yield
3.9%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
The First Trust Emerging Markets Equity Select ETF tracks an index of emerging market stocks selected for low volatility.

FUND BASICS
Category Emerging Market Equities
Fund Sponsor First Trust
Website www.ftportfolios.com
Inception date Jun 20, 2017
Assets (mns) $9
Currency USD
Expense ratio 75 bp
Distributions Quarterly

FUND STRUCTURE
Regulation Open-Ended Fund
Custodian
Weighting Tiered
Index replication
Uses derivatives No
Options available No

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 283
Wgt avg mkt cap (mns) $48,459
Large cap (>$10bn) 50.7%
Mid cap ($2-10bn) 46.6%
Small cap (<$2bn) 2.0%
Developed mkts 3.8%
Emerging mkts 96.2%

TOP TEN HOLDINGS
TENCENT HOLDINGS LTD 3.6 %
TAIWAN CEMENT 3.2 %
SYNNEX TECHNOLOGY INTL CORP 3.1 %
ASUSTEK COMPUTER INC 3.0 %
COMPAL ELECTRONICS 2.9 %
NASPERS LTD-N SHS 2.4 %
HCL TECHNOLOGIES LTD 1.4 %
PING AN INSURANCE GROUP CO-H 1.4 %
PEOPLE'S INSURANCE CO GROU-H 1.3 %
BOC HONG KONG HOLDINGS LTD 1.3 %
Total 23.8 %

TOP COUNTRY EXPOSURE
TAIWAN 21.4 %
CHINA 19.6 %
INDIA 13.6 %
BRAZIL 10.5 %
SOUTH AFRICA 6.2 %
MEXICO 4.3 %
HONG KONG 3.7 %
THAILAND 3.4 %
MALAYSIA 3.2 %
INDONESIA 2.9 %

HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru July 31)
Year-to-date 1 year 5 years 10 years Since Incep.
-17.1% -12.5% -- -- -1.9%

Market Correlations
versus... Beta R-squared
S&P500 0.78 56%
MSCI EAFE 0.97 74%
MSCI Emg. Mkts. 0.82 86%

Technical Indicators
Recent close $43.26
30d moving avg. $43.48
Annualized volatility 17.9%
Short interest (ETF) 0.0%
Relative strength (RSI) 57

Liquidity measures
Avg. volume (thou.) 1
Turnover 0.5%
Bid/Ask (% of price) 0.40%
ADV underlying (mns) $7,090

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 99 potential alternatives to the Emerging Markets Equity Select ETF ETF based on the alternatives' overlap in portfolio holdings with RNEM. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: RNEM Expense: 75 bp ALTAR Score™: 11.5%


ALTERNATIVE ETFs BASED ON OVERLAP WITH RNEM
Ticker Fund
Name
Overlap1
vs RNEM
(%)
Expense
ratio
(bp)
Savings
vs RNEM
(bp)
ALTAR
Score™
(%)
ALTAR
vs RNEM
(%)
CEZ VictoryShares Emerging Market Volatility Wtd Index ETF 29.9 50 25 10.3 -1.3
JHEM John Hancock Multifactor Emerging Markets ETF 28.3 49 26 8.4 -3.2
JPEM JPMorgan Diversified Return Emerging Markets Equity ETF 27.6 44 31 9.0 -2.6
PXH Invesco FTSE RAFI Emerging Markets ETF 27.4 50 25 13.3 +1.8
FNDE Schwab Fundamental Emerging Markets Large Co. Index ETF 26.5 39 36 12.8 +1.3
EEMX SPDR MSCI Emerging Markets Fossil Fuel Free ETF 26.5 30 45 7.8 -3.8
QEMM SPDR MSCI Emerging Markets StrategicFactors ETF 26.1 30 45 8.7 -2.9
GEM Goldman Sachs ActiveBeta Emerging Markets Equity ETF 25.0 45 30 7.8 -3.7
KEMX KraneShares MSCI Emerging Markets EX China Index ETF 24.9 49 26 7.6 -3.9
SPEM SPDR Portfolio Emerging Markets ETF 24.7 11 64 7.8 -3.7
SCHE Schwab Emerging Markets Equity ETF 24.6 11 64 7.9 -3.6
EELV Invesco S&P Emerging Markets Low Volatility ETF 24.3 29 46 9.9 -1.6
PBEE Invesco PureBeta FTSE Emerging Markets ETF 23.9 15 60 8.6 -3.0
VWO Vanguard FTSE Emerging Markets ETF 23.8 10 65 8.0 -3.6
EEM iShares MSCI Emerging Markets ETF 23.3 68 7 7.4 -4.2
DBEM Xtrackers MSCI Emerging Markets Hedged Equity ETF 23.0 65 10 7.4 -4.2
EMSG Xtrackers MSCI Emerging Markets ESG Leaders Equity ETF 22.9 20 55 6.7 -4.8
GSEE Goldman Sachs MarketBeta Emerging Markets Equity ETF 22.4 36 39 8.1 -3.5
ESGE iShares ESG MSCI EM ETF 22.4 25 50 8.6 -3.0
BKEM BNY Mellon Emerging Markets Equity ETF 21.9 11 64 8.4 -3.1
GMF SPDR S&P Emerging Asia Pacific ETF 21.8 49 26 7.3 -4.3
EMXC iShares MSCI Emerging Markets ex China ETF 21.7 25 50 8.0 -3.6
IEMG iShares Core MSCI Emerging Markets ETF 21.4 13 62 7.9 -3.7
QLVE FlexShares Emerging Markets Quality Low Volatility Index Fun 21.0 40 35 7.3 -4.3
EEMV iShares Edge MSCI Min Vol Emerging Markets ETF 20.9 25 50 7.8 -3.8
MFEM PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF 20.0 49 26 7.7 -3.9
DGRE WisdomTree Emerging Markets Quality Dividend Growth Fund 19.8 32 43 8.9 -2.6
EEMA iShares MSCI Emerging Markets Asia ETF 19.7 50 25 7.5 -4.1
CEY VictoryShares Emerging Market High Dividend Volatility Wtd E 19.4 51 24 14.1 +2.5
DVEM WisdomTree Emerging Markets Dividend Fund 19.4 32 43 8.2 -3.4
XSOE WisdomTree Emerging Markets ex-State-Owned Enterprises Fund 18.3 32 43 6.2 -5.4
ROAM Hartford Multifactor Emerging Markets ETF 18.3 44 31 14.6 +3.0
DEM WisdomTree Emerging Markets High Dividend Fund 18.2 63 12 14.2 +2.7
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index 17.8 59 16 10.9 -0.6
FLAX Franklin FTSE Asia Ex Japan ETF 17.6 19 56 7.7 -3.9
EMMF WisdomTree Emerging Markets Multifactor Fund 17.4 48 27 9.3 -2.2
MXDE Nationwide Maximum Diversification Emerging Mkts Core Eq 17.2 64 11 4.5 -7.0
AAXJ iShares MSCI All Country Asia ex Japan ETF 17.2 68 7 7.0 -4.5
BKF iShares MSCI BRIC ETF 17.2 69 6 7.4 -4.1
FDEM Fidelity Targeted Emerging Markets Factor ETF 16.8 45 30 9.5 -2.1
NUEM Nuveen ESG Emerging Markets Equity ETF 16.8 45 30 7.0 -4.5
AVEM Avantis Emerging Markets Equity ETF 16.3 33 42 8.7 -2.8
FXI iShares China Large-Cap ETF 16.3 74 1 13.2 +1.6
RFEM First Trust Riverfront Dynamic Emerging Markets ETF 15.6 95 -20 9.2 -2.3
ISEM Invesco Strategic Emerging Markets ETF 15.4 35 40 10.3 -1.2
EMGF iShares Edge MSCI Multifactor Emerging Markets ETF 13.9 45 30 8.9 -2.7
FEM First Trust Emerging Markets AlphaDEX Fund 13.7 80 -5 12.8 +1.3
FLLA Franklin FTSE Latin America ETF 13.2 19 56 6.6 -5.0
XCEM Columbia EM Core ex-China ETF 13.2 16 59 7.1 -4.4
UEVM VictoryShares USAA MSCI Emerging Markets Value Momentum ETF 12.9 45 30 13.1 +1.6
DVYE iShares Emerging Markets Dividend ETF 12.8 49 26 16.7 +5.1
EMFM Global X MSCI Next Emerging & Frontier ETF 12.4 66 9 9.2 -2.3
GXC SPDR S&P China ETF 12.3 59 16 8.0 -3.5
AIA iShares Asia 50 ETF 12.3 50 25 8.0 -3.6
FLCH Franklin FTSE China ETF 12.1 19 56 8.4 -3.2
MCHI iShares MSCI China ETF 12.0 59 16 7.8 -3.7
CHIX Global X China Financials ETF 12.0 66 9 18.6 +7.1
EMDV ProShares MSCI Emerging Markets Dividend Growers ETF 11.8 60 15 8.7 -2.9
EWT iShares MSCI Taiwan ETF 11.6 59 16 5.6 -6.0
FLTW Franklin FTSE Taiwan ETF 11.6 19 56 6.0 -5.5
KALL KraneShares FTSE Emerging Markets Plus ETF 11.1 49 26 8.1 -3.4
CHIL Global X MSCI China Large-Cap 50 ETF 11.0 29 46 8.4 -3.2
ECON Columbia Emerging Markets Consumer ETF 10.9 59 16 4.5 -7.0
PIN Invesco India ETF 10.8 78 -3 5.4 -6.2
PIE Invesco DWA Emerging Markets Momentum ETF 10.8 90 -15 4.6 -6.9
HDAW Xtrackers MSCI All World ex US High Dividend Yield Hedged 10.7 20 55 11.1 -0.5
CN Xtrackers MSCI All China Equity ETF 10.5 50 25 8.1 -3.4
FLIN Franklin FTSE India ETF 10.5 19 56 5.4 -6.2
VIGI Vanguard International Dividend Appreciation ETF 10.2 25 50 5.6 -5.9
EEMO Invesco S&P Emerging Markets Momentum ETF 10.2 29 46 6.3 -5.2
ACSG Xtrackers MSCI ACWI ex USA ESG Leaders Equity ETF 10.1 16 59 6.9 -4.6
INDA iShares MSCI India ETF 10.0 69 6 4.9 -6.6
IXSE WisdomTree India Ex-State-Owned Enterprises Fund 9.9 58 17 4.6 -6.9
EDIV SPDR S&P Emerging Markets Dividend ETF 9.5 49 26 11.5 -0.0
VYMI Vanguard International High Dividend Yield ETF 8.9 32 43 10.1 -1.5
EPI WisdomTree India Earnings Fund 8.7 85 -10 8.2 -3.4
EWZ iShares MSCI Brazil Capped ETF 8.5 59 16 4.6 -7.0
FLBR Franklin FTSE Brazil ETF 8.5 19 56 5.1 -6.4
FLN First Trust Latin America AlphaDEX Fund 8.3 80 -5 7.5 -4.0
VSGX Vanguard ESG International Stock ETF 8.1 17 58 7.1 -4.4
DBAW Xtrackers MSCI All World ex US Hedged Equity ETF 7.7 40 35 7.0 -4.5
NFTY First Trust India NIFTY 50 Equal Weight ETF 7.5 80 -5 7.3 -4.2
VEU Vanguard FTSE All-World ex-US Index Fund 7.5 8 67 7.5 -4.0
FRDM Freedom 100 Emerging Markets ETF 7.4 49 26 6.5 -5.0
INDY iShares India 50 ETF 7.1 94 -19 5.3 -6.3
ACWX iShares MSCI ACWI ex U.S. ETF 7.1 32 43 7.3 -4.3
VXUS Vanguard Total International Stock Index Fund 7.0 8 67 7.5 -4.0
VIDI Vident International Equity Fund 6.9 59 16 11.1 -0.5
IXUS ishares Core MSCI Total International Stock ETF 6.8 9 66 7.4 -4.2
FBZ First Trust Brazil AlphaDEX Fund 6.8 80 -5 6.6 -4.9
ECOW Pacer Emerging Markets Cash Cows 100 ETF 6.8 70 5 13.4 +1.8
CWI SPDR MSCI ACWI ex-US ETF 6.8 30 45 7.2 -4.4
SDEM Global X SuperDividend Emerging Markets ETF 6.7 66 9 16.2 +4.6
KEMQ Kraneshares Emerging Markets Consumer Technology Index ETF 6.6 80 -5 3.9 -7.7
ACWV iShares Edge MSCI Min Vol Global ETF 6.2 20 55 5.6 -6.0
EMQQ EMQQ The Emerging Markets Internet & Ecommerce ETF 6.1 86 -11 2.2 -9.4
MOTI VanEck Vectors Morningstar International Moat ETF 6.0 57 18 8.6 -3.0
FDNI First Trust Dow Jones International Internet ETF 6.0 65 10 2.2 -9.3
IQDE FlexShares International Quality Dividend Defensive Index Fd 6.0 47 28 12.1 +0.6

1Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

  2015 2016 2017 2018 2019 2020E 2021E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
Book value per share ** ** ** ** ** ** **

 

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est. **%   Debt-to-equity **x
Asset turnover **%   Assets-to-equity **x

Return on equity

Revision activity*
*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS
  2019 2020E 2021E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:
Emerging Markets Equity Select ETF
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 12.3 %
Divided by: Fwd. P/BV 1.0 x
Less: Expense ratio 75 bp
Equals: ALTAR Score 11.5 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.56 CATEGORY
AVERAGE
1.45
 
The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale:

BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3.

Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.