DGRE’s top sector weights include 18% to staples, 17.4% to materials, and in the fourth spot, a 13.3% allocation to bank stocks. That financial services exposure should not be off-putting to investors. Not when the largest Chinese banks are boosting payouts and Russian equivalents are expected to do the same. [China’s Dividend Growth Story]
“Even though uncertainty may roil emerging market equities, concepts like “dividend growth” and “quality” tend to remain attractive to investors. The fact that the MSCI EM has over 95% of its weight in firms that have paid at least one dividend in the past twelve months is a testament to the fact that emerging markets provide a rich hunting ground for dividend payers,” adds Gannatti.
DGRE Country Weights
Table Courtesy: WisdomTree