LOS ANGELES--(BUSINESS WIRE)--The Rayliant Quantamental China Equity ETF (Ticker: RAYC) has surpassed $100 million in assets under management. RAYC is the world’s first active China ETF and is managed by Rayliant Asset Management, an asset management firm focused on quantamental strategies that blend behavioral finance, data science and local China insights.
“We are excited for RAYC to pass this important AUM milestone so quickly,” said Jason Hsu, PhD, Rayliant’s Founder and CIO. “Until RAYC launched, U.S. investors were limited to passive or thematic China ETFs. But China is a complicated market where retail trading accounts for more than 80% of overall volume1. It’s one of the few major markets where we believe active management can still consistently deliver outsized returns. Given this and recent negative sentiment on China, RAYC is experiencing increased interest from sophisticated contrarian investors.”
Unlike passive ETFs, which track an index, Rayliant’s active ETFs are designed to capture long-term excess returns based on its quantamental approach. Rayliant ETFs employ a systematic approach that exploits mispricing in stocks and employ models that use numerous data sets and machine learning to calculate expected returns. In China, the strategies apply specialized data and models to capture features that make Chinese markets unique, including novel aspects of China’s accounting, regulations, market structure, state ownership, and investor behaviour.
“I’m pleased to congratulate Rayliant on this milestone for the RAYC ETF as it continues working to democratize international investing,” said Douglas Yones, Head of Exchange Traded Products, NYSE. “The New York Stock Exchange is excited to support Rayliant and other issuers bringing active management to the ETF industry.”
Rayliant also offers Rayliant Emerging Markets Quantamental Equity ETF (Ticker: RAYE) and Rayliant Developed Global Markets Quantitative Equity ETF (Ticker: RAYD).
1Source: Rayliant Research as of 31 March 2022.
Rayliant Asset Management (“Rayliant”) is an SEC-registered investment adviser focused on generating alpha from investments in China and other inefficient emerging markets. It is an affiliate of Rayliant Global Advisors and its family of companies (collectively, “Rayliant”).
Rayliant develops innovative quant strategies that bring together elements of behavioral finance, data science and local market insights. There was more than USD 26 billion managed using Rayliant’s equity, fixed income, and alternatives strategies as of 31 March 2022. Its clientele includes institutional and high net worth investors globally, and the firm has offices in Beijing, Shanghai, Hangzhou, London, Los Angeles, and Taipei.
Rayliant was founded in 2016 by Jason Hsu, Ph.D. He also co-founded Research Affiliates, a smart beta and asset allocation leader with USD 169 billion in assets managed using its strategies (as of 31 December 2021). He is a professor of finance at UCLA Anderson School of Management and has won numerous awards for his research.
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