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  5. CIEM: There is some thought that emerging markets might be a good place to invest at this time, especially when compared to USA markets. [CI Emerging Markets Alpha ETF]
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Q: There is some thought that emerging markets might be a good place to invest at this time, especially when compared to USA markets. What is your opinion and why? If you concur, what ETF (s) would you suggest? I have recently come across an ETF with the symbol CIEM; could you factor this ETF into your analysis and opinions please. Thanks

Asked by John on October 04, 2021
5i Research Answer:

From a valuation perspective, Emerging Markets have looked attractive for years now but it hasn't tended to work out. We think the same thesis could be used 'today' as well but we still do not think it is a clear win here either. A stronger USD tends to cause problems for emerging markets and many emerging markets are stil battling with COVID. Inflation in certain areas such as energy can also cause some problems as these economies tend to be more industrial and capital-intensive. 

CIEM does offer EM exposure but it just launched in August so it is fairly early days here. XEC or VEE could be other options.