Posted by Nick Kalivas, Senior Equity Product Strategist on Oct 23, 2018, in Exchange-Traded Funds
While EM has lagged overall in 2018, some EM factors did outperform.
The numbers don't lie - emerging equity markets (EMs) have dramatically lagged US equities in 2018 as shown in the table below. The chaos in EM is best exemplified by the Brazilian elections, Russian sanctions, deleveraging in China, and the South African land redistribution policy. However, in some cases, factor-based approaches fared better than the overall market in EM, and I believe there are three indicators suggesting it