Group 1 - The article discusses the attractiveness of international equities in the context of a weak dollar, highlighting the limited options available in the closed-end fund segment compared to ETFs [1] - The Voya Emerging Markets High Dividend Equity Fund is mentioned as a notable closed-end fund that could be of interest to investors [1] - Binary Tree Analytics (BTA) is introduced as a firm with a focus on providing transparency and analytics in capital markets, particularly in closed-end funds, ETFs, and special situations, aiming for high annualized returns with low volatility [1]

Market Performance & Outlook - Equity markets experienced a strong year, with the market up 16% [1] - The market has increased by 80% over the last three years [3] - S&P and Russell 2000 constantly hit new highs [2] - International and emerging market equities are up over 30% year-to-date [2] Portfolio Strategy & Recommendations - Rebalancing portfolios is recommended to address overexposure to benefiting indices [4] - Repositioning portfolios to reduce risk is suggested [4] - Overweighting small caps is favored [5] - International developed and emerging market equities are attractive [5] Small Cap & M&A Activity - The IPO calendar in 2025 doubled that of 2024, and is expected to be even stronger in 2026 [5] - M&A activity has increased, with small cap stocks often being targets [5] International Market Considerations - A significant portion of the 30+% return in international and emerging markets is due to the weakening US dollar [6] - In Europe, the return in US dollar terms is over 30%, while in local currency, it's about half of that [6]

Core Insights - U.S. equities have performed well in 2023, prompting investors to shift from underweight to neutral or overweight positions in foreign equities, particularly emerging markets [1][2] - The decline of the dollar and specific market events have contributed to the strong performance of foreign equities compared to U.S. investments [1] - Emerging markets are seen as having more growth potential due to being ahead in their rate cycles, making them attractive for investment [2] Emerging Markets Equities - Taiwan Semiconductor Manufacturing Co. (TSM) has returned 46.4% year-to-date (YTD) and is a significant holding in the Fidelity Emerging Markets Multifactor ETF (FDEM) [3] - Tencent Holdings (TCEHY) has achieved a YTD return of 48.1%, with a diverse portfolio that includes video games, social media, and e-commerce [4] - Alibaba Group (BABA) has returned 86.1% YTD, despite uncertainties surrounding Chinese stocks, benefiting from a shift away from U.S. equities [5] Fidelity Emerging Markets Multifactor ETF (FDEM) - FDEM has returned 25.4% YTD as of November 6, charging 27 basis points [6] - The ETF employs a multifactor approach, investing in stocks with attractive valuations, positive momentum, and high-quality profiles, while tilting towards sectors less correlated to U.S. stocks [6] - The ETF includes investments in firms like SK Hynix, indicating a strategy focused on outperforming companies in emerging markets [6]