Core Insights - Increasing exposure to global equities is seen as a sound strategy given the current economic backdrop, with the S&P World Index rising 19.8% over the past year and 4.53% quarter to date [1] - Global equity funds attracted $10.65 billion in net inflows, marking the largest weekly purchase since August 13 [2] - Expectations of Federal Reserve rate cuts are enhancing the appeal of global equities, with strong inflows into global equity funds noted [3][4] Economic Factors - The Federal Reserve is expected to proceed with rate cuts in September, October, and December, with a 100% chance of cuts in October and December indicated by the CME FedWatch tool [4] - A weakening U.S. dollar is driving interest in global equity funds, as the U.S. Dollar Index (DXY) has fallen 0.69% over the past five days and 10.18% year to date [5] Investment Strategies - Concerns about a growing AI bubble have been raised, suggesting that diversifying beyond tech funds and companies is prudent to mitigate concentration risks [6][7] - Adding international equity ETFs can enhance geographical exposure and improve overall diversification, potentially boosting risk-adjusted returns [8] Suggested ETFs - Recommended ETFs for consideration include Dimensional International Core Equity Market ETF (DFAI) and Vanguard FTSE Emerging Markets ETF (VWO) [9]

Group 1: Core Insights - The Schwab Fundamental Emerging Markets Equity ETF (FNDE) debuted on August 13, 2013, and offers broad exposure to the emerging markets ETF category [1] - FNDE is managed by Charles Schwab and has amassed over $7.34 billion in assets, making it one of the largest ETFs in the emerging markets space [5] - The fund seeks to match the performance of the Russell RAFI Emerging Markets Large Co. Index, focusing on large companies based on fundamental characteristics [5] Group 2: Cost and Performance - FNDE has an annual operating expense ratio of 0.39%, which is competitive within its peer group, and a 12-month trailing dividend yield of 4.01% [6] - Year-to-date, FNDE has increased by approximately 19.18%, and it was up about 18.82% over the last 12 months as of September 3, 2025 [9] - The fund has a beta of 0.62 and a standard deviation of 16.73% over the trailing three-year period, indicating a medium risk profile [10] Group 3: Holdings and Sector Exposure - FNDE's top holdings include Taiwan Semiconductor Manufacturing (4.67% of total assets), China Construction Bank Corp H, and Alibaba Group Holding Ltd, with the top 10 holdings accounting for about 24.37% of total assets [7][8] - The fund holds approximately 409 different stocks, providing effective diversification against company-specific risks [10] Group 4: Alternatives - While FNDE is a viable option for investors looking to outperform the broad emerging markets segment, alternatives such as Vanguard FTSE Emerging Markets ETF (VWO) and iShares Core MSCI Emerging Markets ETF (IEMG) are also available [11][12] - VWO has $96.18 billion in assets and an expense ratio of 0.07%, while IEMG has $101.47 billion in assets with a 0.09% expense ratio [12]

Core Insights - The WisdomTree Japan SmallCap Dividend ETF (DFJ) offers investors exposure to small-cap dividend-paying companies in Japan, with a focus on smart beta strategies aimed at outperforming traditional market-cap weighted indexes [1][5][10] Fund Overview - DFJ was launched on June 16, 2006, and has accumulated over $320.9 million in assets, positioning it as an average-sized ETF within the Asia-Pacific (Developed) ETFs category [1][5] - The fund seeks to replicate the performance of the WisdomTree Japan SmallCap Dividend Index, which includes small-cap companies that pay dividends [5] Cost Structure - DFJ has an annual operating expense ratio of 0.58%, which is competitive within its peer group [6] - The fund's 12-month trailing dividend yield stands at 2.26% [6] Holdings and Sector Exposure - The fund's assets are primarily denominated in US Dollars (71.72%), with significant holdings in Japanese Yen and Toyo Tire Co [7] - DFJ's top 10 holdings account for approximately 104.37% of its total assets, indicating a concentrated investment strategy [7] Performance Metrics - DFJ has experienced a year-to-date gain of 25.26% and a 19.63% increase over the past year, with trading prices ranging from $70.93 to $93.98 in the last 52 weeks [8] - The fund has a beta of 0.41 and a standard deviation of 15.67% over the trailing three-year period, categorizing it as a medium-risk investment [9] Competitive Landscape - Alternatives to DFJ include the JPMorgan BetaBuilders Japan ETF (BBJP) and the iShares MSCI Japan ETF (EWJ), which have significantly larger asset bases of $13.96 billion and $15.65 billion, respectively [11] - BBJP has a lower expense ratio of 0.19%, while EWJ charges 0.50%, making them potentially more attractive options for cost-conscious investors [11]

Core Insights - The iShares U.S. Small-Cap Equity Factor ETF (SMLF) is designed to provide broad exposure to the Style Box - Small Cap Blend category and was launched on April 28, 2015 [1] - The fund is managed by Blackrock and has accumulated over $2.01 billion in assets, making it one of the larger ETFs in its category [5] - The fund seeks to match the performance of the MSCI USA Small Cap Diversified Multiple-Factor Index before fees and expenses [5] Fund Characteristics - SMLF has an annual operating expense ratio of 0.15%, making it one of the cheaper options in the smart beta ETF space [6] - The fund has a 12-month trailing dividend yield of 1.32% [6] - The ETF has a beta of 1.07 and a standard deviation of 20.90% over the trailing three-year period, indicating a higher risk profile [10] Sector Exposure and Holdings - The ETF has the largest allocation in the Industrials sector at approximately 18.9%, followed by Financials and Consumer Discretionary [7] - Emcor Group Inc (EME) accounts for about 1.04% of the fund's total assets, with Carvana Class A (CVNA) and Jabil Inc (JBL) also among the top holdings [8] Performance Metrics - Year-to-date, SMLF has returned approximately 5.84%, and it is up about 13.29% over the last 12 months as of August 19, 2025 [9] - The fund has traded between $54.28 and $74.15 in the past 52 weeks [9] Alternatives - Other ETFs in the small-cap space include Vanguard Small-Cap ETF (VB) and iShares Core S&P Small-Cap ETF (IJR), which have larger asset bases of $64.84 billion and $82.91 billion respectively [12] - VB has a lower expense ratio of 0.05%, while IJR has an expense ratio of 0.06% [12]

Core Insights - The First Trust STOXX European Select Dividend ETF (FDD) offers investors broad exposure to the European Equity ETFs market, having debuted on August 27, 2007 [1] - FDD is managed by First Trust Advisors and has accumulated over $606.5 million in assets, positioning it as an average-sized ETF in the European Equity category [5] - The fund aims to replicate the performance of the STOXX Europe Select Dividend 30 Index, which includes 30 high dividend-yielding securities from the STOXX Europe 600 Index [5] Fund Characteristics - FDD has an annual operating expense ratio of 0.59%, which is competitive within its peer group, and a 12-month trailing dividend yield of 4.79% [6] - The top 10 holdings of FDD constitute approximately 43.77% of its total assets, with Aker Bp Asa being the largest holding at 5.92% [7][8] - The ETF has a beta of 0.84 and a standard deviation of 18.05% over the trailing three-year period, indicating a medium risk profile [10] Performance Metrics - Year-to-date, FDD has gained about 39.57%, and it has increased approximately 31.95% over the last 12 months as of July 31, 2025 [9] - The ETF has traded within a range of $11.07 to $16.13 over the past 52 weeks [9] Alternatives - For investors seeking to outperform the European Equity ETFs segment, alternatives such as iShares MSCI Eurozone ETF (EZU) and Vanguard FTSE Europe ETF (VGK) are available, with EZU having $7.89 billion in assets and VGK at $25.7 billion [12] - EZU has an expense ratio of 0.51%, while VGK has a notably lower expense ratio of 0.06% [12]

Core Insights - The FlexShares Morningstar Emerging Markets Factor Tilt ETF (TLTE) is designed to provide broad exposure to the emerging markets segment, launched on September 25, 2012 [1] - TLTE aims to match the performance of the Morningstar Emerging Markets Factor Tilt Index, focusing on small-cap and value stocks [5][6] Fund Overview - TLTE has assets exceeding $276.46 million, categorizing it as an average-sized ETF within the Broad Emerging Market ETFs [5] - The ETF has an annual operating expense of 0.57% and a 12-month trailing dividend yield of 3.36% [7] Holdings and Sector Exposure - The top holding, Taiwan Semiconductor Manufacturing Co Ltd, constitutes approximately 4.47% of total assets, with the top 10 holdings representing about 16.11% of total assets [9] - TLTE provides diversified exposure, minimizing single stock risk, with daily disclosure of holdings [8] Performance Metrics - TLTE has gained about 18.32% year-to-date and approximately 17.45% over the past year, with a trading range between $46.89 and $60.69 in the last 52 weeks [11] - The fund has a beta of 0.64 and a standard deviation of 15.55% over the trailing three-year period, indicating medium risk [11] Alternatives in the Market - Other ETFs in the emerging markets space include Vanguard FTSE Emerging Markets ETF (VWO) and iShares Core MSCI Emerging Markets ETF (IEMG), with assets of $94.45 billion and $100.69 billion respectively [13] - VWO has a lower expense ratio of 0.07%, while IEMG charges 0.09% [13]