A central story in global equity markets have been U.S. equities (as represented by the S&P 500 Index) leading other regional equity markets.

The difference in performance between U.S. equities vs. emerging market (EM) equities (as represented by the MSCI Emerging Markets Index) has been among the most staggering, with U.S. equities outperforming EM by over 14% per year for the past three years and by approximately 23% in the first six months of 2013.

This discrepancy has created a large divergence in the valuations of various markets. There are currently 38 WisdomTree equity Indexes tracked by a broad array of exchange-traded funds (ETFs) and covering regions around the world. Using the price-to-earnings (P/E) ratio valuation metric as of July 11, 2013, we show the five “least expensive” markets below. The five lowest P/E ratio markets in the WisdomTree Index family are:

• WisdomTree Global ex-US Real Estate Index (WTGRE)
• WisdomTree Emerging Markets Equity Income Index (WTEMHY)
• WisdomTree India Earnings Index (WTIND)
• WisdomTree China Dividend ex-Financials Index (WTCXF)
• WisdomTree Emerging Markets SmallCap Dividend Index (WTEMSC)