Last week we saw a spike in trading volume in WisdomTree Emerging Markets Equity Income Fund (NYSEArca: DEM), specifically with about 362,000 shares changing hands on Friday and over 1 million shares trading last Thursday.
We compare this activity to the average daily trading volume of 341,790 shares in the ETF. DEM is categorized as a broad-based emerging markets equity ETF, and the fund provider has created its own index that screens emerging markets based equities by the highest available dividend yields and then weights them accordingly.
How does the fund stack up against Emerging Markets ETF peers such as iShares MSCI Emerging Markets (NYSEArca: EEM) and Vanguard MSCI Emerging Markets (NYSEArca: VWO)? Since DEM’s inception in July of 2007, the fund has returned 16.4% versus EEM’s return of 0.2% and VWO’s loss of 1.8%.
In the trailing one year period, DEM is up 20.05% versus EEM (+15.8%), and VWO (+16.9%).
There are notable sector differences in DEM versus both EEM and VWO, including the overweighting to financial services, which is about 27% in DEM compared to 21% in EEM and VWO.
Also, the communication services sector is overweighted in DEM at around 18% of the total portfolio as compared to about 7% in EEM and VWO.
WisdomTree Emerging Markets Equity Income Fund
Chart source: StockCharts.com.
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