Kevin Carter is the founder of the Emerging Markets Internet & Ecommerce ETF.
July 2015 was the middle of a major pullback for shares of Chinese companies. At that time Carter said that his fund had significant downside protection when compared to the dominant emerging markets index funds and ETFs. In addition, he felt his fund had better upside potential.
His ETF declined significantly from there, even more than its rivals. However, it has greatly outperformed three of its largest competitors through the recovery of Chinese stocks and after.
Carter credits his outperformance to its focus on the emerging market industries with the quickest sales growth. In addition, they avoid investments in state-controlled companies.
The broad emerging market indexes have performed very well of late. However, Carter’s strategy has performed even better.
Morningstar’s Diversified Emerging Markets fund category (which also includes actively managed funds) has returned 2.8% this year through March 13. They returned 34.2% during 2017. The category’s average annual return for three years through March 13 was 10.2%.
In comparison, Morningstar has assigned a five-star rating to Carter’s Emerging Markets Internet & Ecommerce ETF. The fund has an average annual rating over the past three years of 25%.