OneAscent Emerging Markets ETF (OAEM) seeks to provide exposure to emerging market equities while applying faith-based screening criteria that exclude companies conflicting with Christian values. This geographic-focused ETF targets developing economies across Asia, Latin America, and other emerging regions, combining traditional emerging markets investing with values-based exclusions.
How It Works
OAEM employs an actively managed approach that starts with a broad emerging markets universe and applies negative screening to remove companies involved in activities deemed inconsistent with Christian principles, such as abortion, pornography, gambling, and tobacco. The fund likely uses market-capitalization weighting for remaining holdings after screening, with periodic rebalancing to maintain geographic and sector diversification. Holdings composition focuses on larger, more liquid emerging market companies that pass the values-based criteria.
Key Features
- Combines emerging markets exposure with faith-based investing, screening out companies conflicting with Christian values and principles
- Recently launched in 2022, offering newer approach to values-based emerging markets investing with modern ESG integration
- Provides access to high-growth developing economies while maintaining alignment with religious investment convictions and beliefs
Risks
- This ETF can lose value significantly during emerging market crises, potentially declining 40-60% when currencies collapse or political instability emerges
- Values-based screening reduces investment universe, potentially limiting diversification and causing performance gaps versus broad emerging market benchmarks during certain periods
- Currency fluctuations can amplify losses when emerging market currencies weaken against the U.S. dollar, adding volatility beyond stock price movements
Who Should Own This
Best suited for faith-based investors with 7+ year time horizons seeking emerging markets exposure as a satellite holding (5-15% of equity allocation). High risk tolerance required due to emerging market volatility and currency risks. Appropriate for investors prioritizing values alignment over maximum diversification in their international equity allocation.