ETF Spotlight on WisdomTree Emerging Markets High Yielding Equity (NYSEArca: DEM), part of an ongoing series.
Assets: $2.6 billion.
Objective: The WsidomTree Emerging Markets Equity Income Fund tries to reflect the performance o fthe WisdomTree Emerging Equity Income Index, which holds the highest dividend yielding stocks from the WisdomTree Emerging Markets Dividend Index.
Holdings: Top holdings include: Taiwan Semiconductor Manufacturer 3.8%, Cia de Bebidas das Americas 3.2%, Banco do Brasil 2.9%, Banco Santander Brasil 2.7% and Kumba Iron Ore 2.4%.
What You Should Know:
- WisdomTree sponsors the fund.
- DEM has an expense ratio of 0.63%.
- The ETF has 280 holdings.
- Sector allocations include: financials 26.6%, telecom services 20.2%, information technology 12.8%, materials 10.1%, utilities 9.9%, consumer staples 7.2%, industrials 4.8%, energy 4.2% and consumer discretionary 3.7%.
- Top country allocations include: Brazil 21.1%, Taiwan 20.3%, South Africa 9.4%, Malaysia 8.2% and Chile 5.0%.
- DEM has a SEC 30-day yield of 7.37%.
- The fund is up 7.7% over the past month, up 6.5% over the last three months and 8.1% higher year-to-date.
- The ETF is also 2.33% above its 200-day exponential moving average.
- “Since this fund’s mid-2007 inception, it has earned higher absolute and risk-adjusted returns than the market-weighted MSCI Emerging Markets Index,” according to Morningstar analyst Patricia Oey.
- “High-yield stocks have historically outperformed no- and low-yield stocks in most countries studied, a manifestation of the value premium,” Oey added.
The Latest News:
- The MSCI Emerging Markets Index has gained 2.2% so far in the week started Jan. 23 as the markets remain optimistic over the tentative Greek debt deal, reports Jason Webb for Bloomberg.
- “Most recent data flows now suggest some stability in terms of European growth indicators, some modest improvement in U.S., China data, albeit it still seems too early to talk of a meaningful recovery,” Tim Ash, head of emerging-market research at the Royal Bank of Scotland Group, said in the article.
- “Meanwhile, on the European periphery front, the market seems more comfortable now with possible outcomes in the Greek saga,” Ash added.
WisdomTree Emerging Markets High Yielding Equity
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.