ETF Trends publisher Tom Lydon discussed the WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) on 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%.