White Paper

The Compelling Case for International

September 21, 2023

Christopher Browne, CFA

Democracy Investments

Executive Summary

Democracy Investments’ Chief Investment Officer Christopher Browne, CFA, shares new data on international stock valuation, the benefits of diversification, and highlights global trade restructuring as we see the world beginning to bifurcate along distinct lines between the West and the BRICS.

  • International stocks currently trade at a significant discount to the US
  • Over longer-term horizons, international stocks provide diversification benefits that dampen the volatility of an equity portfolio
  • The world is splitting into two distinct spheres – those who wish to align with the US and those who wish to align with BRICS
  • Businesses under authoritarian regimes are exposed to more risk than those in democratic nations

Risk Disclosure and Important Information

Carefully consider the fund's investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund’s summary or full prospectus, which may be obtained at www.democracyinvestments.com. Please read the prospectus carefully before investing. A hard copy of the prospectus can be requested by calling 877-PRO-DMCY (877-776-3629) or emailing DemocracyETF@seic.com.

Investing involves risk, including the possible loss of principal. There is no guarantee or assurance that the methodology used to create the Index will result in the Fund achieving positive investment returns or outperforming other investment products.

The fund is subject to the risks associated with International investments, which may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic, or political instability in other nations; emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume; and investments in smaller companies typically exhibit higher volatility.

The funds are distributed by SEI Investments Distribution Co, which is not affiliated with Democracy Investment Management LLC.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

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