In an investment landscape marked by unpredictable market shifts and the impressive performance of certain tech giants, the Freedom 100 Emerging Markets ETF (FRDM) offers a compelling alternative. This ETF differentiates itself through a unique 'freedom-weighting' methodology, which focuses on selecting companies from emerging markets that adhere to strong principles of economic and personal liberty. This strategy involves a rigorous screening process, excluding any enterprises with more than 20% state ownership, thereby championing a purer form of capitalism within its portfolio. With a substantial $2.97 billion in assets under management and a modest 0.49% expense ratio, FRDM has consistently demonstrated its capability to outperform the broader market, even during periods when the U.S. market has shown stagnation or heightened volatility. This reflects a commitment to sustainable growth and efficient capital allocation, proving that an investment philosophy rooted in freedom can indeed yield superior returns.
Emerging Markets ETF: A Strategy Rooted in Liberty
The Freedom 100 Emerging Markets ETF (FRDM) employs a distinctive investment methodology that sets it apart from conventional emerging market funds. Its core principle, 'freedom-weighting', guides the selection of equities from 24 emerging market nations. This is not merely a geographical diversification play, but a strategic alignment with countries that uphold and promote personal and economic freedoms. A critical component of this strategy is the exclusion of state-owned enterprises, defined as companies where government ownership exceeds 20%. This strict criterion aims to mitigate risks associated with political interference and inefficiencies often found in state-controlled entities, ensuring that the fund's investments are channeled into more transparent and market-driven companies. The fund, which manages $2.97 billion in assets, maintains a competitive expense ratio of 0.49%. Since its inception, FRDM has exhibited robust performance, surpassing the broader market, particularly during periods of increased volatility in the U.S. market. This success underscores the efficacy of its unique investment philosophy, which marries ethical considerations with a pursuit of financial gain, fostering sustainable growth and optimal capital deployment.
The performance of FRDM suggests that an investment strategy prioritizing personal and economic freedoms can lead to substantial long-term gains. In an era where geopolitical factors increasingly influence market dynamics, focusing on markets with strong governance and free-market principles may offer a more resilient and rewarding investment path. This approach not only aligns with ethical investing but also taps into the growth potential of economies where innovation and private enterprise are allowed to flourish unhindered.