Masters in Business

Perth Tolle on ETF Freedom Metrics

Jul 1, 2022
Perth Tolle, founder of Life + Liberty Indexes and creator of the Freedom 100 EM Index, discusses her journey from wealth advising to developing freedom-focused ETFs. She highlights the novel ranking methodology that promotes ethical investing by excluding autocratic countries. Tolle shares humorous anecdotes about spontaneous bets and dives into the intricate relationship between political changes and market performance, especially in emerging markets. Through personal reflections, she illustrates the importance of freedom metrics and their impact on investment strategies.
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ANECDOTE

Inspiration for Freedom ETF

  • Perth Tolle's inspiration for the Freedom ETF came from witnessing limitations on freedoms during her time in Hong Kong and mainland China.
  • These observations led her to explore the relationship between freedom and market performance.
INSIGHT

Freedom Metrics

  • The Freedom ETF uses freedom metrics from independent think tanks like the Cato Institute and Fraser Institute.
  • These metrics, covering personal and economic freedoms, drive the country weighting within the ETF.
INSIGHT

Company Selection Process

  • Besides freedom, the ETF considers market capitalization and liquidity for country selection.
  • Only the top 10 largest, most liquid, non-state-owned companies from each selected country are included.
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