Julie Cane, Chief Executive Officer, Democracy Investments, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss the investment thesis and mission behind Democracy International Fund ETF (DMCY).
Cane, who started her career as a naval aviator, has experienced life first-hand in a country with a lesser degree of democracy. Today, as CEO of Democracy Investments, her career has shifted to raising awareness of a worldwide decline in democracy. Investors in passive indices, such as EAFE and ACWI ex-US, may be unknowingly overweighting assets to countries with authoritarian regimes. Investors who consider the degree of democracy in their investment process helps keep countries accountable. Cane’s mission is to incentivize democracy by influencing capital flows.
The Democracy International Fund ETF (DMCY), leverages exclusive data from the Economist Democracy Index, reweights an all-world ex-US index by investing more in democratic countries and less in countries with authoritarian regimes. In addition to investing in democracy, investors in this ETF may be able to reduce the impact of geopolitical risk on their portfolio. The fund invests approximately 85% in developed markets and 15% in emerging markets, and tilts on country weights while keeping sector weights in line with the index.