In this episode of Behind the Ticker, Brad Roth, CIO of Thor Financial Technologies, chats with Young Jae Lee, Senior Investment Manager at Pictet ******* et Management about what traditional emerging market ETFs capture, what they don't, and why the Pictet Emerging Markets Rising Economies ETF (RISE) offers true diversification.
Prefer to watch this conversation? You can do that here or on our YouTube channel.
Emerging markets ETFs are secretly tech bets. The top five holdings in the MSCI EM benchmark mirror the top five in the S&P 500 almost sector-for-sector. Buy traditional EM ETFs and you're really just doubling down on the same tech risk.
Pictet's new ETF, RISE, kicks out the biggest names in EM. It excludes Korea, Taiwan, and China entirely, even though those three countries make up more than 70% of the standard benchmark. The bet: real emerging-market exposure means growing working-age populations, not aging economies riding on legacy index weight.
Demographics are EM's version of AI. Borrowing from the Solow Growth Model, Young Jae Lee argues population growth is what actually drives GDP in developing markets like India, Brazil, Indonesia, and Mexico. That demographic engine deserves the same portfolio spotlight in EM allocations that AI gets in US ones.
#traditional #market
Prefer to watch this conversation? You can do that here or on our YouTube channel.
Emerging markets ETFs are secretly tech bets. The top five holdings in the MSCI EM benchmark mirror the top five in the S&P 500 almost sector-for-sector. Buy traditional EM ETFs and you're really just doubling down on the same tech risk.
Pictet's new ETF, RISE, kicks out the biggest names in EM. It excludes Korea, Taiwan, and China entirely, even though those three countries make up more than 70% of the standard benchmark. The bet: real emerging-market exposure means growing working-age populations, not aging economies riding on legacy index weight.
Demographics are EM's version of AI. Borrowing from the Solow Growth Model, Young Jae Lee argues population growth is what actually drives GDP in developing markets like India, Brazil, Indonesia, and Mexico. That demographic engine deserves the same portfolio spotlight in EM allocations that AI gets in US ones.
#traditional #market
3 months ago
