EEM - Wisdom Tree Emerging Market High Dividend ETF: Decent Yield And Improved EM Outlook

2024-05-03 11:51:34 ET

Summary

• Wisdom Tree Emerging Markets High Dividend ETF offers a safer approach to investing in emerging market stocks with lower valuation and above-average dividend yield.
• The ETF has heavy exposure to markets like China and Taiwan, but less exposure to promising markets like Brazil, South Korea, and Indonesia.
• The ETF has a cheap valuation and attractive dividend yield, but investors should monitor the consistency of dividend distributions.

Overview

Emerging market stocks could be due for a rally this year, as many of these economies should have higher growth, and some may be able to cut interest rates. Investing in equities with lower valuation and an above-average dividend yield could be a safer approach in this environment. The Wisdom Tree Emerging Markets High Dividend ETF ( DEM ) is one solid vehicle to consider, as it offers a respectable dividend yield and trades at a steep discount to the MSCI Emerging Markets Index. This ETF is likely a safer bet than other traditional emerging market ETFs that invest in leading EM stocks like Samsung ( OTCPK:SSNLF ), Alibaba ( BABA ), Tencent Holdings ( OTCPK:TCEHY ), and ICICI Bank ( IBN ), as ETFs that invest in these large-cap na mes have a much higher valuation . Instead, a value-based approach with an above-average dividend yield could be a safer approach....

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