Although DEM lost 7% last year, the ETF’s country top country allocations are attractive on at least two levels. Russia and China combine for 37% of DEM’s weight and not only are those two of the least expensive emerging markets, but China is the largest dividend payer and Russia the fastest-growing dividend payer in the WisdomTree Emerging Markets Equity Income Index. [Dividend Growth the Emerging Markets Way]
DEM has competitors to consider as well. The iShares Emerging Markets Dividend ETF (NYSEArca: DVYE) lost 10.4% last year. DVYE has a trailing 12-month yield of almost 4% while Brazil and Taiwan combine for 41% of the fund’s geographic weight.
The EGShares EM Dividend High Income ETF (NYSEArca: EMHD) debuted last August and has a conservative sector bias with utilities, telecom and staples combining for over 41% of the ETF’s weight. Four countries – Brazil, China, South, Africa and Turkey – are 73% of EMHD’s country weight.
EMHD’s underlying index, the FTSE Equal Weighted Emerging All Cap ex Taiwan Diversified Dividend Yield 50 Index, had an index yield of 6.68% at the end of the third quarter, according to issuer data.
WisdomTree Emerging Markets Equity Income Fund
ETF Trends editorial team contributed to this article. Tom Lydon’s clients own shares of DEM.