Rayliant, a prominent figure in the financial arena, has recently introduced a new product to its lineup – the Rayliant SMDAM Japan Equity ETF (NYSE Arca: RAYJ). This innovative fund focuses on investing in mid- and large-cap companies situated in Japan or those with a substantial business presence in the region. With the backing of Japan’s Sumitomo Mitsui DS Asset Management (SMDAM) as the subadvisor, the fund is managed actively. Furthermore, investors will find the expense ratio for this ETF stands at a competitive 0.72%.
In a statement, Jason Hsu, the founder and CIO of Rayliant, emphasized the significance of active management and local insights in navigating international markets. Expressing confidence in the new ETF, Hsu highlighted the collaboration with SMDAM, praising their proven fundamental approach in Japanese equities. The launch of RAYJ aligns with Rayliant’s strategic focus on providing investors with tools to optimize exposure across emerging and developed markets.
Exploring Strategies within the Japan ETF
RAYJ strategically selects common or preferred stock from various companies for its portfolio. Notably, the fund also has the flexibility to delve into derivatives, particularly futures contracts, for various purposes like hedging, cash holdings equitization, and enhancing redemption options. With a keen eye on above-average yields and total return potential, RAYJ’s portfolio currently consists of 29 securities, including significant holdings in companies like Disco Corp., Toyota Motor Corp., Mitsubishi Corp., Mitsubishi UFJ Financial Group, and Fast Retailing Co. Ltd.
Rayliant’s existing ETFs have already gained substantial traction in the market, accumulating a total of $129.4 million in assets under management. Among these, the Rayliant Quantamental Emerging Market ex-China Equity ETF (RAYE) leads the pack with $46.2 million in assets.
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