How to Target Emerging Market Equity While Excluding State-Owned Companies

ETF Trends publisher Tom Lydon discussed the WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOEon this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

XSOE offers targeted exposure to emerging market equity excluding state-owned companies, neutralizing companies potentially influenced by government decisions.

Rather than overexposing investors to energy and state-run banking sectors which are dominated by state-owned enterprises, the portfolio is significantly allocated toward consumer discretionary and technology sectors.

Top holdings include Tencent holdings 6.9%, Alibaba group 5.7%, Samsung electronics 5.1%, Taiwan semiconductor 3.1%, Naspers 2.4%, Baidu 1.8%, Ping An Insurance 1.8%, Reliance Industries 1.3%, Lukoil 1.3%, and Hon Hai Precision 1.2%.

Click here to listen to the podcast.