WisdomTree (WETF), the ETF sponsor known in part for its array of dividend funds, bulked up that lineup some more Thursday with the debut of the WisdomTree Emerging Markets Dividend Growth Fund (DGRE) .
Already the name behind widely known dividend ETFs such as the WisdomTree LargeCap Dividend Fund (DLN) and the WisdomTree Emerging Markets Equity Income Fund (DEM) , WisdomTree has recently been further bolstering its dividend growth ETF offerings. The WisdomTree Emerging Markets Dividend Growth Fund is the third such fund introduced by the firm since May and the second in two weeks. [Diversifying Dividend Exposure With Small-Caps]
“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 theinvestment flexibility to respond to dividend growth potential rather than historical dividend behavior, aligning nicely with dividend behavior of emerging market companies. And similar to our other dividend growth funds, we believe DGRE can provide access to some of the most attractive dividend growth opportunities available in the market,” said WisdomTree Research Director Jeremey Schwartz in a statement.
DGRE, which has an annual expense ratio of 0.63%, is not excessively weighted to the BRIC nations. Not a bad thing this year as Brazilian and Indian stocks, among others, have been among the worst emerging markets performer. Overall, BRIC represents roughly a third of DGRE’s country weight, which is underweight relative to broadly used emerging markets benchmarks.
China and India combine for just 9% of the new ETF’s weight. The top-five country exposures are Brazil, South Africa, Indonesia, Russia and Mexico. [Emerging Markets ETFs With A Dividend Focus]
In addition to lightening the BRIC load, DGRE offers a pleasant surprise at the sector level: No dangerously large weights to financial services, energy or materials names. Financials and materials names each receive weights of just over 13%, but staples and telecom are each weighted at least 19% in the new fund.
While DGRE itself is a new fund, this is not WisdomTree’s first foray into emerging markets dividends. The firm’s WisdomTree Emerging Markets Equity Income Fund and WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) have proven popular with income investors looking for emerging markets exposure.
WisdomTree Emerging Markets SmallCap Dividend Fund
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of DEM.
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