Ronald Reagan said, “Freedom is a fragile thing and it’s never more than one generation away from extinction. It is not ours by way of inheritance; it must be fought for and defended constantly by each generation, for it comes only once to a people.” On this Memorial Day, let us be thankful for those who fought to build and defend our democracy.
WEBCAST ON DEMAND REPLAY – Investing in Democracy to Improve Risk-Adjusted Returns
Worried about your exposure to China amid the escalating trade tensions with the US? Wondering how your portfolio could be impacted by rising geopolitical instability? Are there other country risks besides China?
Nobel Prize-winning academics have established that in the long run, autocracy underperforms democracy. TOBAM’s LBRTY index strategy leverages this research to show that companies that are exposed to authoritarian regimes are at risk. The Westwood LBRTY Global Equity ETF (BFRE) not only screens out stocks that are listed in autocratic nations but also reduces exposure to stocks listed in democratic countries that we believe are most reliant on the excluded autocracies.
The BFRE removes Chinese companies and systematically reduces the weight in the US and other democratically listed companies that may be the most exposed to China, and as a result, could suffer from the current tariff turmoil.
Accepted for 1 CFP/ IWI / CFA CE Credit