Democracy International Fund ETF (DMCY US) – Investment Proposition

Democracy International Fund ETF (DMCY) presents a rules-based, all-world ex-U.S. large and mid-cap equity portfolio that combines traditional market-cap representation with systematic tilts informed by country-level governance characteristics. The objective is broad international diversification while leaning toward markets exhibiting more stable institutions, with corresponding underweights to jurisdictions with weaker governance—an approach intended to reflect long-horizon risk premiums tied to transparency, rule of law, and capital formation. Style exposures can vary versus plain-vanilla international benchmarks, with potential quality and profitability tilts and a moderation of state-influenced sectors; factor outcomes can deviate as country weights evolve. In global risk-on phases the strategy should participate broadly, while times of governance stress or shifting supply chains may highlight its tilts. It can serve as a core international equity building block, a values-aligned sleeve for policy-aware mandates, or a factor-completion tool emphasizing governance quality. Suitable users include strategic allocators seeking long-term international diversification and institutions integrating governance into portfolio construction. A key risk is methodology drift if governance scores or country classifications change, affecting weights and tracking characteristics.

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