SEI Select Emerging Markets Equity ETF (SEEM) seeks to provide investment results that correspond to the performance of emerging markets equity securities through active portfolio management. This emerging markets equity ETF targets companies domiciled in or deriving significant revenue from developing economies across Asia, Latin America, Eastern Europe, and Africa.
How It Works
SEEM employs an actively managed approach where SEI's portfolio managers select individual emerging markets stocks based on fundamental analysis and valuation metrics. The fund uses a bottom-up stock selection process, focusing on companies with strong growth potential, competitive advantages, and attractive valuations relative to developed market peers. Portfolio construction emphasizes diversification across countries, sectors, and market capitalizations while maintaining flexibility to adjust allocations based on market conditions and opportunities.
Key Features
- Recently launched in October 2024, offering fresh approach to emerging markets investing without legacy holdings or style drift
- Active management allows tactical positioning and country allocation adjustments based on political and economic developments in emerging markets
- Managed by SEI with focus on fundamental analysis rather than passive index replication for potential alpha generation
Risks
- This ETF can lose value significantly during emerging markets crises, political instability, or currency devaluations, potentially declining 40-60% in severe downturns
- Active management risk means the fund may underperform passive emerging markets ETFs if stock selection or country allocation decisions prove incorrect
- Currency fluctuations can substantially impact returns as emerging market currencies often depreciate against the U.S. dollar during global stress periods
Who Should Own This
Best suited as a satellite holding (5-15% of equity allocation) for aggressive investors with 7+ year time horizons seeking emerging markets exposure with active management. High risk tolerance required due to significant volatility and political risks. Appropriate for investors wanting professional management of complex emerging markets rather than passive index exposure.