L&G Quality Equity Dividends ESG Exclusions Emerging Markets UCITS ETF USD Dist
| Issuer: L&G ETFs |
| Asset Class: Equity |
| TER: 45bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 15 Jul 2021 |
| Ticker: LDEM |
| ISIN: IE00BMYDMC42 |
This investment vehicle provides targeted exposure to emerging market equities through a systematic, factor-based methodology. It deviates from traditional market-cap weighted strategies, which often result in heavy concentration in a handful of large companies and countries. Instead, it seeks to capture the growth potential of developing economies by focusing on a portfolio of high-quality, dividend-paying companies. This multi-factor approach is designed to provide a more balanced and potentially defensive form of access to the asset class, aiming to enhance risk-adjusted returns over the long term.
The strategy's construction process involves two key screens: quality and dividend yield. The quality filter identifies companies with strong financial health, such as stable earnings and robust balance sheets, which may offer greater resilience during periods of market stress. Concurrently, the dividend screen selects firms with a track record of sustainable shareholder payouts, offering a potential income component. By integrating these two factors, the portfolio is composed of companies that are not only fundamentally sound but also committed to returning value to shareholders, a combination that can be attractive in the often-volatile emerging markets landscape.
A defining characteristic of this fund is its equal-weighting scheme. At each rebalancing, all constituent stocks are assigned an equal weight, which mitigates concentration risk and prevents any single company or sector from disproportionately influencing performance. This diversification effect provides broader exposure across the emerging market opportunity set. This approach is well-suited for investors seeking a rules-based, risk-aware strategy to participate in emerging market growth while potentially generating a consistent income stream.
