Not All Indexes Are Created Equal
The MSCI Emerging Markets Value Index had 484 constituents as of March 31, 2014. As can be seen, the WisdomTree Emerging Markets Equity Income Index was the only Index that was even close to this number. The other Indexes, having approximately one-fourth the constituents, rely on stock selection to a much greater extent.
As value may be gaining momentum, what’s clear as of April 24, 2015, is that only one of the dividend-focused strategies is outperforming the broader MSCI Emerging Markets Index thus far in 2015.
1Refers to the WisdomTree Emerging Markets Dividend Index universe.
Important Risks Related to this Article
Investments in emerging, offshore or frontier markets are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation and intervention or political developments.
Dividends are not guaranteed and a company’s future ability to pay dividends may be limited. A company currently paying dividends may cease paying dividends at any time.