ETF Evaluator:
Rayliant NxtGen Multifactor EM Eq ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in Diversified Emerging Mkts Over the Last Year
| 114.0% | Nomura Focused Emerging Mrkts Eq ETF (EMEQ) |
| 81.0% | FT EM Human Flourishing ETF (FTHF) |
| 68.7% | First Trust Bloomberg Emr Mkt Dem ETF (EMDM) |
| 67.8% | Freedom 100 Emerging Markets ETF (FRDM) |
| 59.4% | Pacific NoS Global EM Equity Active ETF (GEME) |
Risk
Index
Risk
Index
ETF Details
Rayliant NxtGen Multifactor EM Eq ETF Overview
Rayliant NxtGen Multifactor EM Eq ETF (RWEM) is an actively managed International Equity Diversified Emerging Mkts exchange-traded fund (ETF). Rayliant launched the ETF in 2021.
The investment seeks long-term capital appreciation.
Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of emerging market companies. The fund is primarily made up of stocks in emerging market companies that are selected using a quantitative investment approach with human discretion.
About Rayliant NxtGen Multifactor EM Eq ETF (RWEM)
There are 2 members of the management team with an average tenure of 4.63 years: Jason Hsu (2021) and Phillip Wool (2021). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 1 primary benchmark: MSCI EM NR USD index with a weighting of 100%. Rayliant NxtGen Multifactor EM Eq ETF has 241 securities in its portfolio. The top 10 holdings constitute 34.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Rayliant NxtGen Multifactor EM Eq ETF is part of the Equity global asset class and is within the International Equity ETF group. Rayliant NxtGen Multifactor EM Eq ETF has 99.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.4% There is 99.2% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Rayliant NxtGen Multifactor EM Eq ETF has 0.4% of the portfolio in cash.
Assets Under Management
The fund has $70 million in total assets, which is below the $3 billion average for the Diversified Emerging Mkts category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
RWEM Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Rayliant NxtGen Multifactor EM Eq ETF expense ratio is average compared to funds in the Diversified Emerging Mkts category. Rayliant NxtGen Multifactor EM Eq ETF has an expense ratio of 0.52%, which is the same as its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Rayliant NxtGen Multifactor EM Eq ETF has a portfolio turnover rate of 238%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 44% for the Diversified Emerging Mkts category.
Recently, in the month of July 2026, Rayliant NxtGen Multifactor EM Eq ETF returned -1.3%, which earned it a grade of B, as the Diversified Emerging Mkts category had an average return of -3.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Rayliant NxtGen Multifactor EM Eq ETF has a trailing yield of 1.83%, which is below the 2.41% category average.
The fund normally distributes its income annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Rayliant NxtGen Multifactor EM Eq ETF Grades
Year to date, the ETF has returned 19.0%, 1.9 percentage points better than the category, which translates into a grade of C. The fund has returned 33.9% over the past year (grade of C) and 19.0% over the past three years (grade of B).
For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about Rayliant NxtGen Multifactor EM Eq ETF, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
RWEM Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| RWEM Return (NAV) | -1.3% | 5.9% | 33.9% | 19.0% | na | na |
| RWEM Return (Price) | -2.7% | 9.3% | 35.8% | 19.4% | na | na |
| NAV +/- Price Return | 1.318% | -3.402% | -1.909% | -0.370% | na | na |
| Diversified Emerging Mkts Avg | -3.0% | 3.0% | 31.9% | 16.6% | 7.1% | 7.8% |
| RWEM Grade (NAV) | B | A | C | B | na | na |
| +/- Category (NAV) | 1.7% | 2.9% | 2.0% | 2.4% | na | na |
| RWEM Tax-Cost Ratio | na | na | 0.9% | 1.0% | na | na |
RWEM Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| RWEM Return (NAV) | 19.0% | 27.2% | 6.9% | 22.2% | -20.5% | na | na | na | na | na | na |
| RWEM Return (Price) | 18.8% | 28.2% | 7.3% | 21.5% | -20.0% | na | na | na | na | na | na |
| NAV +/- Price Ret | -0.012% | 0.035% | 0.055% | -0.032% | -0.022% | na | na | na | na | na | na |
| Diversified Emerging Mkts Avg | 17.1% | 29.2% | 6.7% | 12.8% | -18.8% | 2.3% | 12.7% | 18.2% | -14.6% | 33.7% | 10.9% |
| RWEM Grade (NAV) | C | D | C | A | D | na | na | na | na | na | na |
| +/- Category | 1.9% | -2.0% | 0.2% | 9.5% | -1.7% | na | na | na | na | na | na |
| Risk Measures | |
| Beta: | 1.11 |
| R-Squared: | 72% |
| Standard Deviation: | 18.1% |
| Category Risk Index: | 1.12 |
| Category Risk Rating: | Above Average |
| Total Risk Index: | 1.47 |
| Total Risk Rating: | Above Average |
| Portfolio Characteristics | |
| Yield: | 1.8% |
| Total Assets: | $ 70 Mil |
| Share Class Assets: | $ 70 Mil |
| Turnover: | 238.0% |
| Expense Ratio: | 0.52% |
| Index Fund: | No |
| Index Tracked: | MSCI EM NR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | |
| Income Distribution Frequency: | Annually |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 4.6 years | |||
| Average Tenure: 4.6 years | |||
| Managers (Year): Hsu Jason (2021), Wool Phillip (2021) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 241 |
| % in Top 10 Holdings: | 34.3% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 99.2% |
Portfolio Allocation |
|
| Domestic Stock: | 0.4% |
| Foreign Stock: | 99.2% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.4% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Rayliant |
| Phone Number: | 866-898-1688 |
| Website: | |
| Inception Date: | December 15, 2021 |
Expenses and Fees
| Expense Ratio (%): | 0.52% (Rating: Avg) |
| Category Average Expense Ratio (%): | 0.52% |
