WisdomTree Emerging Markets Equity Income allows passive investing with the security of an income stream. The portfolio is value oriented, and holds about 300 of the highest-yielding emerging market stocks, weighted by annual dividends paid, Morningstar notes. Since 2007, DEM has shown less volatility than the MSCI Emerging Market Index, while earning higher returns. [Best Emerging Market ETFs]
Yet the fund is still susceptible to emerging market volatility such as steep currency declines and geo-political risks. The fund does not hedge foreign currency exposure so the risk entails both falling currency values and falling asset prices. [Best Dividend ETFs]
BlackRock’s iShares unit recently launched an ETF that will compete with DEM. The new fund is iShares Emerging Market Dividend Fund (NYSEArca: DVYE). [Emerging Market Dividend ETF]
WisdomTree Emerging Markets Equity Income
Tisha Guerrero contributed to this article.