Sell The State, Buy The People

Sell The State, Buy The People

A Seeking Alpha Contribution


  • State-owned companies dominate many emerging-market ETFs.
  • State-owned companies generate lower return on assets than privately-managed firms.
  • Avoiding the slower-growing state firms by going with small caps, or a fund such as XSOE.

Investors can slice and dice the investment world into all manner of categories. One of the most common is to separate its investments into domestic and international, developed and emerging markets, then into regions or individual countries.

A different way to slice the market is to break it down into state-owned and private companies. This is not a critical distinction for investors in the developed world, where deep capital markets offer exposure to many private firms, but many emerging markets are still developing their capital markets. A passive investment approach in emerging markets results in a state-owned heavy portfolio, but there are ways to avoid this exposure… To Continue Reading Please, Click Here.

*Please note, this article was written and published as a contribution for Seeking Alpha. To finish reading the article you will be redirected to their site.

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