), already one of the top issuers of dividend
, continues to bulk up that lineup with Thursday's introduction
of the WisdomTree Emerging Markets Dividend Growth Fund (
), the firm's third emerging markets dividend ETF.
The WisdomTree Emerging Markets Dividend Growth Fund is also
the second ETF introduced by the firm in a week that focuses on
the potential of its holdings to deliver future dividend growth.
Last week, the WisdomTree U.S. SmallCap Dividend Growth Fund
) debuted, becoming the first U.S.-listed ETF to focus on
dividend growth leadership in the small-cap
"While many dividend-focused indexes in emerging markets focus
on yield and valuation, there is a dearth of options that focus
on dividend growth. We believe that DGRE offers
the investment flexibility to respond to dividend growth
potential rather than historical dividend behavior, aligning
nicely with dividend behavior of emerging market companies,"
said WisdomTree Research Director Jeremy Schwartz
in a statement
Indeed, unlike so many emerging markets ETFs that are heavy on
financial services, energy or materials names, DGRE's top sector
weight is 19.2 percent to staples followed by 19 percent to
telecom. Financials, materials and technology round out the
fund's top-five sector exposures. DGRE has an annual expense
ratio of 0.63 percent.
Further Proof You're Buying The Wrong Dividend
DGRE's country allocations are also noteworthy. In a year when
the BRIC quartet has collectively
delivered dismal returns
, investors may be looking for other ways of gaining emerging
markets exposure. DGRE is underweight BRIC.
"DGRE is underweight the 'BRIC' countries - Brazil, Russia,
India, China - and holds some of its largest weights in the 'MIT'
countries - Mexico, Indonesia and Thailand-again, which
differs from traditional, comparable investments," said
Combined, the four BRIC nations represent about 33.6 percent
of DGRE's weight compared to a roughly 41 percent allocation for
those countries in the MSCI Emerging Markets Index. DGRE's
top-five country weights are Brazil at 14.8 percent, South Africa
at 14.3 percent, Indonesia at nearly 13.5 percent, Russia at
almost 11 percent and Mexico at 10. 2 percent.
DGRE is the fourth dividend ETF in WisdomTree's dividend
growth lineup with the others being the WisdomTree U.S. SmallCap
Dividend Growth Fund, the WisdomTree U.S. Dividend Growth Fund
and the WisdomTree Global ex-US Growth Fund (NYSE:
The firm is also a leader in emerging markets dividend ETFs as
the WisdomTree Emerging Markets Equity Income Fund (NYSE:
) and the WisdomTree Emerging Markets SmallCap Dividend Fund
) have about $6.3 billion in combined assets under
For more on ETFs, click
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