The Freedom 100 Emerging Markets ETF (FRDM) is brought to the market by Alpha Architect, a firm known for its quantitative-driven and research-based approach to investment. Alpha Architect focuses on creating strategies that are both transparent and empirically based. With FRDM, they offer investors an opportunity to tap into the emerging markets, using a unique methodology that emphasizes freedom-weighted indexing. This approach aims to allocate more to countries that have greater economic and personal freedoms, providing a fresh perspective on investing in emerging markets.
The Freedom 100 Emerging Markets ETF (FRDM) offers investors an opportunity to tap into emerging markets' growth potential while also benefiting from dividend distributions. FRDM's dividend eligibility is determined by the dividend policies of the companies within its portfolio, which primarily consist of emerging market equities. Dividends from these holdings are typically distributed to investors on a quarterly basis, allowing for regular income generation. While FRDM may prioritize capital appreciation, its dividend component adds an extra layer of potential returns for income-seeking investors interested in emerging markets.
Tracking the Freedom 100 Emerging Markets Index is the primary objective of the FRDM ETF. This exchange-traded fund employs a passive management or indexing approach to mirror the total return performance of the Freedom 100 Emerging Markets Index, before fees and expenses. This index is meticulously designed to follow the performance of a carefully selected portfolio of approximately 100 equity securities in emerging market countries. Country inclusion and weights are determined based on a comprehensive set of 83 personal and economic freedom variables, which are further categorized into civil freedom, political freedom, and economic freedom metrics. The ETF's methodology involves freedom-weighting countries based on their freedom scores, with higher-scoring countries receiving greater weight in the index. As of January 12, 2023, the index includes Taiwan, South Korea, Chile, Poland, South Africa, Brazil, Malaysia, Indonesia, Mexico, and the Philippines as the featured emerging markets. The fund employs a replication strategy, aiming to invest in all index component securities in similar proportions to the index itself, but it may use a representative sampling strategy when deemed appropriate by the adviser. The fund's investment strategy ensures a broad exposure to emerging market equities with an emphasis on economic freedom factors. Alternative Sources FRDM Tracking
The correlation aspect of the Freedom 100 Emerging Markets ETF (FRDM) is essential to understanding its performance in relation to the broader emerging markets. Given that FRDM seeks to track the Freedom 100 Emerging Markets Index, its correlation with this specific index is expected to be high. This strong correlation makes FRDM a valuable tool for investors interested in gaining exposure to emerging markets while incorporating freedom-weighted metrics into their investment strategy. To explore FRDM's correlations with other assets and sectors, investors can leverage ETF Insider's web app, which provides deep and insightful data through simple visualization tools, allowing for a comprehensive analysis of overlapping trends and correlations among various US ETFs. ETF Insider's platform is a powerful resource for investors looking to make data-driven decisions. It offers a user-friendly interface that enables users to explore correlations, identify potential investment opportunities, and manage risk effectively within their portfolios. Whether you're a seasoned investor or new to the world of ETFs, ETF Insider's tools provide valuable insights to enhance your investment strategy.
The Freedom 100 Emerging Markets ETF (FRDM) focuses on emerging market countries with a unique freedom-weighted approach. This ETF invests in approximately 100 equity securities in emerging market nations, selecting and weighting them based on freedom metrics such as civil freedom, political freedom, and economic freedom. By emphasizing countries with higher freedom scores, FRDM aims to provide exposure to emerging markets with potentially more stable political and economic environments, offering investors a distinctive approach to investing in this asset class.
The exposure characteristic of the Freedom 100 Emerging Markets ETF (FRDM) focuses on providing investors with exposure to emerging markets. FRDM seeks to track the performance of the Life + Liberty Freedom 100 Emerging Markets Index, which includes companies from emerging markets that are aligned with principles of freedom, liberty, and democracy. This ETF offers exposure to a diverse range of emerging market regions and sectors, allowing investors to participate in the growth potential of these economies while adhering to ethical and political principles. For a deeper understanding of FRDM's exposure and to explore its holdings, correlations, and overlaps, investors can leverage the ETF Insider web app, which provides comprehensive and insightful data on various U.S. ETFs.
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