OneAscent Emerging Markets ETF (OAEM) Stock Analysis

OneAscent Emerging Markets ETF (OAEM) Financial Services Profile

OneAscent Emerging Markets ETF (OAEM) offers investors exposure to emerging market equities through a unique screening process and life cycle investment strategy. With a focus on identifying companies poised for growth, OAEM provides a targeted approach to capturing opportunities within developing economies, distinguishing itself in the asset management sector.

What Is the Investment Thesis for OAEM?

OneAscent Emerging Markets ETF (OAEM), with a market capitalization of $97.1M and a beta of 0.96, presents a focused approach to emerging market equity investments. The core value proposition lies in its Elevate Screening Process and Life Cycle Investment approach, designed to identify companies with high growth potential. A key catalyst is the increasing adoption of sophisticated investment strategies targeting specific segments within emerging markets. However, potential risks include the inherent volatility of emerging markets and the fund's concentrated investment approach, which could lead to underperformance if the screening process fails to identify winning stocks.

Based on FMP financials and quantitative analysis

OAEM Key Highlights

OAEM's innovative approach combines the OneAscent Elevate Screening Process with a Life Cycle Investment strategy.

• The fund focuses on companies in emerging economies, targeting those more likely to outperform.
• OAEM provides investors with exposure to the growth potential of emerging markets.
• The ETF's strategy aims to deliver superior risk-adjusted returns through careful stock selection.
• OAEM has a beta of 0.96, indicating slightly lower volatility compared to the broader market.

Who Are OAEM's Competitors?

OAEM is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are OAEM's Key Strengths?

Unique screening process for identifying promising companies.

• Life Cycle Investment approach provides a differentiated perspective.
• Focus on long-term growth in emerging markets.
• Experienced management team.

What Are OAEM's Weaknesses?

Relatively small market capitalization ($0.09B).

• Concentrated investment approach may lead to higher volatility.
• Dependence on the effectiveness of the screening process.
• No dividend yield.

What Could Drive OAEM Stock Higher?

Continued economic growth in key emerging markets driving corporate earnings.

• Increasing investor interest in specialized emerging market ETFs.
• Potential inclusion of new emerging markets in the fund's investment universe by Q4 2026.

What Are the Key Risks for OAEM?

Economic slowdown in emerging markets impacting company performance.

• Geopolitical risks and political instability in certain emerging market countries.
• Currency fluctuations reducing returns for USD-based investors.
• Increased competition among emerging market ETFs leading to fee compression.

What Are the Growth Opportunities for OAEM?

• Expansion of Emerging Market Economies: The continued growth of emerging market economies presents a significant opportunity for OAEM. As these economies develop, consumer spending increases, and businesses expand, creating potential for higher returns on investments. The IMF projects emerging markets to grow at an average rate of 4.5% annually over the next five years, providing a favorable backdrop for OAEM's investment strategy. OAEM can capitalize on this trend by identifying and investing in companies that are poised to benefit from this economic expansion.
• Increasing Demand for Smart Beta ETFs: The growing popularity of smart beta ETFs, which use alternative weighting methodologies to enhance returns or reduce risk, presents another growth opportunity for OAEM. Investors are increasingly seeking more sophisticated investment strategies that go beyond traditional market-cap-weighted indexes. OAEM's Elevate Screening Process and Life Cycle Investment approach align with this trend, potentially attracting investors looking for a differentiated approach to emerging market investing. The smart beta ETF market is expected to continue growing at a double-digit rate, providing a tailwind for OAEM.
• Penetration into New Emerging Markets: OAEM has the opportunity to expand its investment universe by including new and frontier emerging markets. As these markets develop and become more accessible to foreign investors, they can offer attractive growth opportunities. OAEM's screening process can be adapted to identify promising companies in these markets, further diversifying the fund's portfolio and enhancing its return potential. This expansion could involve markets in Southeast Asia, Africa, or Latin America, each with unique growth drivers and investment opportunities.
• Strategic Partnerships with Financial Advisors: Forming strategic partnerships with financial advisors and wealth management firms can significantly increase OAEM's distribution reach. By educating advisors about the fund's unique investment strategy and its potential benefits for their clients, OAEM can tap into a wider pool of investors. These partnerships can involve joint marketing efforts, educational webinars, and dedicated support for advisors. As financial advisors increasingly seek specialized investment solutions for their clients, OAEM can position itself as a valuable partner.
• Development of Thematic Emerging Market ETFs: OAEM can explore the development of thematic ETFs that focus on specific sectors or trends within emerging markets, such as technology, healthcare, or renewable energy. These thematic ETFs can cater to investors who have a particular interest in these areas and believe they offer superior growth potential. By leveraging its existing screening process and expertise in emerging markets, OAEM can create targeted investment products that meet the evolving needs of investors. Thematic ETFs are gaining popularity as investors seek to align their investments with their values and beliefs.

What Are OAEM's Competitive Advantages?

• Proprietary Screening Process: The OneAscent Elevate Screening Process provides a unique methodology for identifying promising companies in emerging markets.
• Life Cycle Investment Approach: Considering the stage of development of companies and markets offers a differentiated perspective.
• Experienced Management Team: The fund is managed by professionals with expertise in emerging market investing.

What Does OAEM Do?

The OneAscent Emerging Markets ETF (OAEM) was created to provide investors with a focused approach to investing in the dynamic landscape of emerging economies. Unlike broad-based emerging market ETFs, OAEM employs the OneAscent Elevate Screening Process, a proprietary methodology designed to identify companies with strong fundamentals and growth potential. This screening process is combined with a Life Cycle Investment approach, which considers the stage of development of both the company and the market it operates in. OAEM's investment strategy centers on selecting companies that are believed to be well-positioned to outperform their peers within emerging markets. The fund's portfolio is constructed with a focus on long-term growth, seeking to capitalize on the economic expansion and increasing consumerism in developing nations. By combining rigorous screening with a lifecycle perspective, OAEM aims to deliver superior risk-adjusted returns to its investors. The ETF is managed by experienced professionals with a deep understanding of emerging markets and a commitment to responsible investing.

What Products and Services Does OAEM Offer?

• Invests in equity securities of companies located in emerging market countries.
• Employs the OneAscent Elevate Screening Process to identify companies with strong fundamentals.
• Utilizes a Life Cycle Investment approach, considering the stage of development of companies and markets.
• Constructs a portfolio focused on long-term growth and capital appreciation.
• Seeks to outperform traditional emerging market benchmarks through active stock selection.
• Provides investors with a diversified exposure to emerging market equities.

How Does OAEM Make Money?

• Generates revenue through management fees charged on assets under management (AUM).
• Fees are typically a percentage of the fund's net asset value (NAV).
• Aims to grow AUM by attracting new investors and achieving strong investment performance.

What Industry Does OAEM Operate In?

The asset management industry is experiencing a shift towards specialized ETFs that target specific investment strategies and market segments. Emerging markets continue to be an area of interest for investors seeking higher growth potential, although they also come with increased risk. OAEM's focus on combining a screening process with a life cycle approach positions it within the smart beta segment of the ETF market, competing with other funds that offer targeted exposure to emerging market equities. The competitive landscape includes both broad-based and specialized emerging market ETFs.

Who Are OAEM's Key Customers?

• Individual investors seeking exposure to emerging market equities.
• Financial advisors looking for specialized investment solutions for their clients.
• Institutional investors seeking to diversify their portfolios with emerging market assets.

OAEM Valuation & Market Position

With a $97.1M market cap, OneAscent Emerging Markets ETF sits in the micro-cap segment of the market.

Return on equity for OneAscent Emerging Markets ETF stands at 0.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.0%, showing how much profit it generates from its asset base. OAEM trades at a trailing price-to-earnings ratio of 0.00, below the Financial Services sector average of ~18x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 0.0%, the inverse of the P/E and a quick read on earnings relative to price.

OAEM Financials

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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