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Trade Our New EmergingMoney Country Allocator Index (EMCAI)

By: Emerging Money
Posted: 3/19/2014 10:00:00 AM
Referenced Stocks:

Your Ticket to Investing in Emerging Markets Smarter than the MSCI EM Index. The Emerging Money EM Country Allocator Index ( EMCAI ) is a snapshot of Emerging Markets via a top down country allocation, providing a dynamic, broad-based look at Emerging Markets through country specific ETF's.

emj Each ETF in the index will capture the underlying country's fundamentals via specific stocks that make up each country's index in the MSCI, thereby giving investors exposure to the growth and EPS dynamics.

Why invest in 10 countries versus the 18 countries across Emerging Markets?

An index with ten countries can make more concentrated allocation calls while still offering significant diversification versus the traditional MSCI Emerging Markets model.

Emerging Markets allocation dynamics can often produce a set up where certain regions or countries will be out of favor or tactically unattractive.  Certain countries may be too highly geared to a specific sector or cyclical backdrop.

The EMCAI will avoid those country allocations where macro or country specific index composition is not optimal and instead focus on allocating to country ETFs (countries) that present more immediate or near term drivers of outperformance relative to traditional Emerging Markets country allocation spectrums

We will present an index of the ten Emerging Market countries based on the following factors:

The index will be actively managed via a monthly rebalancing process that takes place in the first week of every month:

Emerging Money Country Allocator Index (EMCAI)