DEM - DEM: High Yield With Huge Long-Term Upside

• The WisdomTree Emerging Markets High Dividend ETF (DEM) offers a well-diversified and high yield option for investors looking for exposure to emerging markets without wanting too much exposure to China.
• With a distribution yield of 6.3% and a price/earnings ratio of just 6.2x, it is hard to find a well-diversified ETF trading at such low valuations.
• The Wisdomtree Emerging Markets High Dividend ETF currently trades with a P/E ratio of just 5.9x, which is on par with the Covid crash lows.
• The high weighting of Brazilian resource stocks partly explains the fund’s valuation discount, with the sector trading at levels that imply investors are anticipating a collapse in earnings and dividends, but this appears unlikely given the recovery in commodity prices.

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