Rayliant launched the world’s first active China equities ETF on the New York Stock Exchange (“NYSE”) on December 31, 2020. 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.

California, USA, January 20, 2021 /Xinwengao.com/ - Rayliant launched the world’s first active China equities ETF on the New York Stock Exchange (“NYSE”) on December 31, 2020. 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 volume*, 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.”

*Source: Rayliant Research as of 30 June 2020.

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About Rayliant

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.

More information on Rayliant is available at https://rayliant.com/.

For more details on our research, please also see https://rayliant.com/publications/.

For more information about the Rayliant Quantamental China Equity ETF (Ticker: RAYC), please visit

https://funds.rayliant.com

Important Information

This document is issued by Rayliant Investment Research d/b/a Rayliant Asset Management (“Rayliant”). Unless stated otherwise, all names, trademarks and logos used in this material are the intellectual property of Rayliant.

Investing involves risk, including the risk of total loss of principal. There can be no assurance that a Fund will achieve its stated objectives, and investments are subject to political, social, economic or other developments that may impact a Fund’s objectives. Fluctuations in currency of foreign countries may also have an adverse impact on domestic currency values. Emerging markets involve heightened risks related to these same factors as well as increased volatility and lower trading volume. Diversification does not ensure a profit or guarantee against a loss. Securities focusing on a single country may be subject to higher volatility. Trading through Stock Connect is subject to a number of restrictions that may affect the Fund’s investments and returns. The Fund’s investments in China A Shares purchased through Stock Connect are generally subject to Chinese securities regulations and listing rules, among other restrictions. Investments in smaller companies typically exhibit higher volatility, and Investments that are managed according to a quantitative model can perform differently from the market as a whole. The fund is non-diversified.

This document is for informational purposes only. It is not a recommendation to buy or sell any financial instrument and should not be construed as an investment advice. No offer may be made without also providing the Prospectus, and the information in the Prospectus is controlling.

Before investing in any ETF, it is critical for investors to carefully consider the fund’s investment objectives, risks, charges and expenses. To obtain a full or summary Prospectus for the Rayliant Quantamental China Equity ETF, which contains this and other information, please visit https://funds.rayliant.com. Please read the Prospectus carefully and consider contacting a financial professional before investing.

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