(SEEM) SEI Select Emerging Markets - Overview

The SEI Select Emerging Markets Equity ETF (NASDAQ: SEEM) is designed to allocate at least 80 % of its net assets-plus any investment-purpose borrowings-into equity securities issued by companies headquartered in emerging-market economies. The fund’s mandate also requires exposure to a minimum of six different emerging-market countries, although it may concentrate a “substantial” portion of assets in a single country or a limited set of countries if the portfolio manager deems it appropriate.

Key metrics (as of the latest public filing, Q3 2024) show a total net asset value of roughly $1.2 billion, an expense ratio of 0.45 %, and an average weighted-average market-cap of about $12 billion, indicating a tilt toward large-cap issuers. The fund’s top sector allocations are typically information technology (~25 % of assets), consumer discretionary (~20 %), and financials (~15 %). These weightings reflect the broader trend that emerging-market tech firms are benefitting from accelerated digital adoption, while consumer spending is being driven by a rising middle class in regions such as Southeast Asia and Latin America.

From a macro perspective, the fund’s performance is highly sensitive to three primary drivers: (1) global risk appetite and U.S. dollar strength, (2) commodity price cycles that affect resource-rich economies (e.g., Brazil, Chile), and (3) domestic policy reforms that improve corporate governance and capital market access in key markets like India and Indonesia. Given the current environment of moderate U.S. rate hikes and a flattening yield curve, the risk-adjusted return outlook remains uncertain; a 10 % depreciation of the dollar could boost net returns by 1–2 % annually, whereas a sudden tightening of global liquidity could reverse that gain.

For investors seeking a data-driven view of how SEEM’s sector and country exposures evolve over time, a quick look at the fund’s holdings on ValueRay can reveal emerging trends that aren’t obvious from the prospectus alone.