While it has often been said that active management is the way to go with emerging markets equities, the WisdomTree Emerging Markets SmallCap Dividend Index (WTEMSC), the underlying index for DGS, says differently. Over the three-year period ending Dec. 31, 2013, the index outperformed two-thirds of active managers. Over the five-year period, the number jumps to 94.3%, though it was about 50% last year, according to WisdomTree data.
DGS has over $1.7 billion in assets under management. Taiwan, one of the top emerging markets dividend destinations, and South Korea combine for 38% of the ETF’s weight.
WisdomTree Emerging Markets SmallCap Dividend Fund
Tom Lydon’s clients own shares of DEM and EEM.