The WisdomTree China ex-State-Owned Enterprises Index is home to 63 companies, nearly two-thirds of which are large-caps. The index sports a P/E ratio of about 13.7, a price-to-book ratio of 1.72 and a price-to-cash flow ratio of just over 11, according to WisdomTree data.http://www.wisdomtree.com/etfs/index-details.aspx?IndexID=145
“By removing China’s state-run companies from the fund, the CXSE maintains a very limited exposure to banks and energy stocks,” according to TheStreet.
CXSE is not WisdomTree’s first foray into emerging markets ETFs that explicitly steer clear of state-owned enterprises. In December, the issuer introduced the WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (NYSEArca: XSOE). True to its name, the WisdomTree Emerging Markets ex-State-Owned Enterprises Fund excludes state-run oil giants such as Petrobras (NYSE: PBR) and Russian oil companies.
By excluding state-controlled firms, the WisdomTree Emerging Markets ex-State-Owned Enterprises Fund ratchets up exposure to the emerging markets consumer story, although the new ETF is a not a dedicated consumer fund. For example, XSOE’s combined weight to the technology consumer discretionary and staples sectors, three of the fund’s top four sector weights, is 50%. [This ETF Excludes State-Run Companies]
ETF Trends editorial team contributed to this post.