10 min readBy Ron Koren ETF Insider
EEM for investing in emerging markets
Alternative to EEM is to consider other emerging market ETFs such as VWO (Vanguard FTSE Emerging Markets ETF) & IEMG (iShares Core MSCI Emerging Markets ETF).
IVES is managed by ETFMG, a reputable investment company known for its passive indexing approach. Unlike actively managed funds, IVES aims to track its underlying index without trying to outperform it. The fund primarily employs a replication strategy, investing in the securities of the Dan Ives Global Cloud Technology Prime Index in similar proportions. However, it may use a representative sampling strategy under certain circumstances, such as when replicating the index becomes impractical or costly.
While IVES predominantly emphasizes its investment strategy on environmental, social, and governance (ESG) factors, it also incorporates a dividend distribution approach. Dividend eligibility and distribution in IVES are contingent upon the ESG practices and performances of the companies within its portfolio. Investors can expect periodic dividend distributions, providing an additional incentive for those seeking sustainable investments with potential income returns. IVES' unique blend of ESG considerations and dividend distribution may appeal to investors looking for a socially responsible approach to income generation within their portfolios.
The Dan Ives Global Cloud Technology Prime Index is designed to track the performance of companies across the globe that are engaged in providing infrastructure, equipment, connectivity, data back-up and storage services, and data center management for enterprise-based software applications, or are engaged in providing cloud-based software platforms that enable businesses to move data and software applications onto the cloud, also known as Cloud Technology Companies. These companies are identified by Prime Indexes, an independent index provider, based on specific criteria that include deriving more than 50% of their revenue from Cloud Technology. The index has regular quarterly reviews and rebalancing by the Index Provider, ensuring that it accurately represents the performance of Cloud Technology Companies worldwide. As of January 10, 2022, the index had 68 constituents, and it is expected to maintain a high correlation with its performance and that of the Fund, which seeks to replicate its holdings.
The correlation aspect of the Dan Ives Global Cloud Technology Prime Index ETF (IVES) plays a pivotal role in understanding its performance in relation to global cloud technology companies. IVES tracks companies engaged in providing infrastructure, connectivity, and cloud-based software platforms. These firms are collectively known as Cloud Technology Companies. IVES' correlation with its underlying index reflects the performance of these companies and is expected to be highly correlated. This strong correlation makes IVES an effective tool for investors seeking exposure to the cloud technology sector, providing valuable insights into the trends within this industry.
The IVES Sector ETF is primarily focused on tracking the performance of the Dan Ives Global Cloud Technology Prime Index. This index is designed to include companies worldwide that are engaged in providing infrastructure, equipment, connectivity, data backup, storage services, and data center management for enterprise-based software applications. It also encompasses cloud-based software platform providers enabling businesses to migrate data and software applications to the cloud. The index has specific criteria for inclusion, such as a minimum market capitalization, liquidity requirements, and revenue composition, ensuring that it comprises companies significantly involved in cloud technology. With this sector concentration, IVES Sector offers investors exposure to the rapidly growing cloud technology industry, known for its innovation and potential for growth. However, investors should be mindful of the sector's inherent risk and volatility, as it can be sensitive to market sentiment and competitive dynamics within the technology space.
The exposure of the Dan Ives Global Cloud Technology Prime Index ETF (IVES) is centered around companies engaged in the global cloud technology sector. This ETF tracks the performance of exchange-listed equity securities, ADRs, and GDRs of companies worldwide that provide infrastructure, equipment, connectivity, data backup, storage services, and data center management for enterprise-based software applications. Additionally, it includes companies involved in offering cloud-based software platforms, specifically enabling businesses to migrate their data and software applications to the cloud, making it a go-to investment choice for those interested in the rapidly growing cloud technology sector.
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10 min readAlternative to EEM is to consider other emerging market ETFs such as VWO (Vanguard FTSE Emerging Markets ETF) & IEMG (iShares Core MSCI Emerging Markets ETF).
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