Four Russian stocks, including two oil and gas names, are found among DEM’s top-10 holdings. China and Taiwan, two emerging markets dividend stars, combine for nearly 31% of DEM’s weight. Last year, China was the largest dividend payer in DEM’s underlying index while Russia was the fastest grower of payouts.
WisdomTree weighs DEM’s constituent companies by dividends and earnings rather than by market value while adjusting for relative value in an effort to avoid overweighting expensive sectors and countries according to the issuer.
DEM also features a combined 29% weight to telecom, utilities and technology names, three sectors that in the developing world have outperformed important emerging markets benchmarks over the past three years. [Emerging Markets Value Bets]
WisdomTree Emerging Markets Equity Income Fund
Tom Lydon’s clients own shares of DEM and EEM.