VALE - DEM: Double-Digit Real Annual Returns Expected

Summary

• The DEM tracks the performance of the WisdomTree EM High Dividend Index, a well-diversified and high-yield option for investors looking for exposure to emerging markets without excess China risk.
• The ETF has outperformed the EM benchmark impressively over the past two years and should continue to do, largely due to the high dividend yield, which reflects extremely cheap valuations.
• While payouts are expected to fall over the coming months, the forward dividend yield is still significantly above its 10-year average and 2.7x higher than the EM benchmark.
• The DEM is one of the few indices that I track globally that is priced to deliver double-digit long-term real returns.

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