Along with Taiwan, Brazil and South Africa were the only countries to see noticeable increases in weight in the WisdomTree Emerging Markets Dividend Growth Index (WTEMDG), DGRE’s underlying index, since May 2013.
That index has dramatically increased its exposure to tech and consumer-related stocks (both cyclical and non-cyclical) while sharply paring materials and financial services exposure, according to WisdomTree data.
DGRE has a distribution yield of 3.37% and the ETF’s weight to Russia has fallen 500 basis points since August.
That yield is important, particularly for value investors, because the highest-yielding emerging markets stocks trade at a noticeable discount to the MSCI Emerging Markets Index and at major discounts to their U.S. and European peers. [EM ETF With a Dividend Kicker]
WisdomTree Emerging Markets Equity Income Fund
Tom Lydon’s clients and Todd Shriber own shares of DEM.