YTD: -32.2%
Performance YTD result is an estimated percentage based on a model account and may not be performance of your account.
As Of: 04/30/2020
Market Exposure
  • International Equity
Emerging Market Select
Strategy Overview:

Emerging Market Select is an actively managed investment strategy designed to generate long-term growth. The strategy utilizes a proprietary scoring and selection process to actively allocate across emerging market country ETFs. The strategy invests in countries with higher risk-adjusted return potential and reduces or eliminates exposure to countries with lower risk-adjusted return potential.

Primary Objective:

  • Long-term growth through emerging market equity exposure.

Active Management for a Changing Market:

People are living longer and the road to financial security is more complex than ever. Investors need thoughtful solutions that properly balance the financial tradeoff between portfolio growth and peace of mind.  ETFs provide investors a liquid, transparent and low-cost avenue to equities around the world. NorthCoast’s research has shown that individual country ETFs reward certain factors and punish others. The goal is to capitalize on this research and harness the power of factor-based investing. Country exposure adjustment and disciplined risk management are the key components to Emerging Market Select. Incorporating a dynamic, risk-adjusted country ETF selection process can enhance international diversification and generate solid, long-term growth.

Date Update
September 20, 2019

What is your outlook in Emerging Markets?

Our outlook for Emerging Markets has decreased slightly compared with the end of last quarter, but we are still on the positive side with strong macroeconomic and sentiment signals. Areas of concern include China’s August industrial production figures, fixed asset investment, exports, and retail trade, which all weakened. The recent spike in oil prices might also have adverse consequences on China's economy. Higher fuel prices might dent already-weakened consumers’ discretionary spending and add input costs in an already-weakened demand environment.


December 30, 2018

What do you make of the recent volatility in the market and how has it, or hasn’t it, impacted your outlook and investment decisions for the portfolios?

The recent volatility has not significantly impacted our outlook as our model has been indicating that the fundamentals of the U.S. economy are still relatively sound. As a result, the market volatility has served as an opportunity to tactically add some U.S. equity exposure at lower prices. We see this volatility as a reaction to uncertainty. However, the uncertainty has not materialized into impactful changes to fundamentals.


January 3, 2018

What attributed to your bullish outlook on emerging markets?

Emerging market equities were among 2017’s top gaining asset classes. Our model indicated a high score for the asset class led by its macro and sentiment components, which are among the highest compared to other international equity markets. Manufacturers and exporters in many Asian markets received a boost recently, benefiting from the upswing in the global tech cycle. As a result, manufacturing sentiment improved. Macroeconomic signals also increased in recent months, particularly leading economic indicators and retail sales.

For more commentary from CIO Patrick Jamin on the final quarter of 2017, Click Here

September 20, 2017

 Global Select, International Select, International Select Hedged and Emerging Market Select are the newest offerings by NorthCoast and the firm is excited about the opportunity and timing. Click here to learn more.