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The Tidal Financial Group (Tidal) expanded rapidly over the last decade and encompassed multiple ETF related brands including Toroso Investments, Tidal ETF Services, and the ETF Think Tank. Going forward all activity will be unified under the Tidal brand as we become one company, dream, family, and platform focused on holistic ETF customer solutions.

Introducing the ETF Playlist

The ETF Think Tank is dedicated to furthering ETF research for the benefit of advisors and investors. Due to this, we are constantly looking for investment opportunities while embracing ETF transparency to populate our database. We use the data within our ETF Security Master to create lists of unique ETF statistics like, Smart CostConcentration, Passive Influence, and other proprietary metrics. Our conversation about China listed equities with Kyle Bass during last Thursday’s Get Think Tanked Happy Hour inspired us to provide a new ETF Playlist this week, full of funds with the most exposure to State Owned Enterprises (SOE).

SOE What?

First, let’s define a SOE, and why investors should care about this issue. A SOE, for the purpose of this article, is a publicly traded equity that has significant ownership and influence from the government or state. The concern is that the government interest is often at odds with the interest of shareholders, and potentially the community in some regimes. Influence is the key factor, but also difficult to quantify. The factor we were able to accurately calculate for this ETF Playlist is the percentage, by weight, of companies with any shares held by the government of domicile. The list below shows the top 20 ETFs with state owned influence.

SOE Much?

Many investors are surprised by the intersection of free markets and SOE in certain countries, like India and China. Additionally, the fact that WisdomTree India ex-State-Owned Enterprises Fund (IXSE) comes in second for exposure is a matter of definitions. WisdomTree excludes companies with 20% or higher SOE coverage; in our research, we set the limit at anything above 0%. It is difficult to define the risk or potential reward that State ownership could offer to investors in the short term versus the long term. That being said, the purpose of this ETF Playlist is to embrace the transparency of the structure and highlight the funds and geographies with the greatest exposures.


The information provided here is for financial professionals only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

All investments involve risk, including possible loss of principal.

The value of investments and the income from them can go down as well as up and investors may not get back the amounts originally invested, and can be affected by changes in interest rates, in exchange rates, general market conditions, political, social and economic developments and other variable factors. Investment involves risks including but not limited to, possible delays in payments and loss of income or capital. Neither Toroso nor any of its affiliates guarantees any rate of return or the return of capital invested. This commentary material is available for informational purposes only and nothing herein constitutes an offer to sell or a solicitation of an offer to buy any security and nothing herein should be construed as such. All investment strategies and investments involve risk of loss, including the possible loss of all amounts invested, and nothing herein should be construed as a guarantee of any specific outcome or profit.  While we have gathered the information presented herein from sources that we believe to be reliable, we cannot guarantee the accuracy or completeness of the information presented and the information presented should not be relied upon as such. Any opinions expressed herein are our opinions and are current only as of the date of distribution, and are subject to change without notice. We disclaim any obligation to provide revised opinions in the event of changed circumstances.

The information in this material is confidential and proprietary and may not be used other than by the intended user. Neither Toroso or its affiliates or any of their officers or employees of Toroso accepts any liability whatsoever for any loss arising from any use of this material or its contents. This material may not be reproduced, distributed or published without prior written permission from Toroso. Distribution of this material may be restricted in certain jurisdictions. Any persons coming into possession of this material should seek advice for details of and observe such restrictions (if any).

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