Rayliant debuts the world’s first China active equity ETF
Los Angeles, 31 Dec 2020 – Rayliant launched the world’s first active China equities ETF this morning on the New York Stock Exchange (“NYSE”). The Rayliant Quantamental China Equity ETF (Ticker: RAYC) is targeted at U.S. investors seeking long-term capital appreciation in China. Unlike passive ETFs, which track an index, Rayliant’s active strategy is designed to capture long-term excess returns in the world’s second-largest economy.
“Rayliant’s China ETF signals the next generation of China ETF investing”, said Jason Hsu, PhD, Rayliant’s Founder and CIO. “Until now, U.S. investors have been limited to passive or thematic China ETFs. In a market where retail trading accounts for more than 80% of overall volume1, China is one of the few major markets where we believe active management can consistently deliver outsized returns. Our RAYC gives U.S. investors opportunities to outperform the mainland China equity market.”
RAYC employs a systematic approach that seeks to exploit mispricing in Chinese stocks. The strategy is localized to China, applying specialized data and models capturing features that make Chinese markets unique, including novel aspects of China’s accounting, regulations, market structure, state ownership, and investor behavior.
“As active management in the ETF industry continues its remarkable growth, the NYSE is excited to support Rayliant in its launch of the first China equity actively managed ETF,” said Douglas Yones, Head of Exchange Traded Products, NYSE. “With the RAYC ETF, Rayliant extends the benefits of active management to all investors, continuing to further democratize international investing for everyone.”
1Source: Rayliant Research as of 30 June 2020.
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Rayliant Asset Management (“Rayliant”) is an SEC-registered investment adviser focused on generating alpha from investments in China and other inefficient emerging markets. It is an affiliate of Rayliant Global Advisors and its family of companies (collectively, “Rayliant”).
Rayliant develops innovative quant strategies that bring together elements of behavioral finance, data science and local market insights. There were more than USD 22 billion managed using Rayliant’s equity, fixed income and alternatives strategies as of 30 Dec 2020. Its clientele includes institutional and high net worth investors globally, and the firm has offices in Beijing, Shanghai, Hangzhou, London, Los Angeles and Taipei.
Rayliant was founded in 2016 by Jason Hsu, Ph.D. He also co-founded Research Affiliates, a smart beta and asset allocation leader with USD 145 billion in assets managed using its strategies (as of 30 Sept 2020). He is an adjunct professor in finance at UCLA Anderson School of Management and has won numerous awards for his research.
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