WisdomTree Emerging Markets Equity Income Fund (DEM) Surpasses $3 Billion in Assets
Company Unveils Whitepaper Examining Dividend Approach in Emerging Markets; New Market Insights and Podcast Series
Dividends Growing Faster in Emerging Markets than any other Region; $175 billion dividends paid in 2011 in Emerging Markets Dividend Stream[1]
NEW YORK, Feb. 21, 2012 (GLOBE NEWSWIRE) -- WisdomTree (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager, today announced the WisdomTree Emerging Markets Equity Income Fund (DEM) recently surpassed $3 billion in assets under management. DEM is the industry's first, and largest, dividend-focused emerging markets ETF. WisdomTree has rolled out new emerging market research including a whitepaper, Deconstructing WisdomTree Index Performance in Emerging Markets: the Fundamental Difference, a Market Insights commentary, The Search for Higher Dividends Can Lead to Emerging Markets, and a podcast discussion in collaboration with Michael Johnston of ETF Database.
Dividends in Emerging Markets
Jeremy Schwartz, WisdomTree Director of Research, commented, "Historically, investors have focused on large-cap blue-chip companies in developed countries when looking for significant generators of dividends. Yet our research establishes that in recent years the emerging markets delivered the fastest growth in aggregate dividend streams among the major regions, with more than $175 billion in dividends paid in 2011. Contrary to conventional wisdom, investors do not need to make a trade-off between the growth potential of the emerging market region in order to achieve exposure to dividend-paying stocks."
DEM seeks investment results that correspond to the price and yield performance, before fees and expenses, of the WisdomTree Emerging Markets Equity Income Index. Since inception (6/1/2007), the WisdomTree Emerging Markets Equity Income Index has outperformed the MSCI Emerging Markets Index by 717 basis points (bps)[2] per year, while exhibiting standard deviation[3] that is 525 bps lower on an average annual basis.[4]
Dividend weighting helped lower the valuation ratio (specifically the Price to Dividend Ratio[5]) of WisdomTree's dividend-based Indexes. This is especially helpful when stocks are appreciating quickly relative to their growth of dividends and becoming more expensive – a trend that has been occurring in the emerging markets. In these markets, weighting by dividends offers unique potential to manage risk.
For a copy of the whitepaper, Deconstructing WisdomTree Index Performance in Emerging Markets: the Fundamental Difference, please click here. For a copy of the research commentary, The Search for Higher Dividends Can Lead to Emerging Markets, click here or visit www.wisdomtree.com.
[1] Dividend Stream: Every firm within a WT dividend Index has paid a dividend in the past 12 months; dividends for every constituent firm within a WT Index can be added up to create a dividend stream.
[2] Basis point: 1/100th of 1 percent.
[3] Standard deviation is a statistical measurement that quantifies historical volatility of returns. The greater the standard deviation, the higher the volatility expected from expected normal returns.
[4] You cannot invest directly in an index. Index performance does not represent actual fund or portfolio performance. A fund or portfolio may differ significantly from the securities included in the index. Past performance does not guarantee future results.
[5] Price to dividend ratio: Stock price divided by dividends per share. Lower numbers indicate investors are paying less for a dollar of dividends, thereby indicating that the equity itself may be relatively cheap.
WisdomTree Emerging Markets Equity Income Index: Measures the performance of high dividend-yielding companies in the emerging markets. Companies are weighted based on cash dividends paid. The MSCI EAFE Index is a market cap-weighted index composed of companies representative of the developed market structure of developed countries in Europe, Australasia and Japan.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus containing this and other important information, call 866-909-9473 or visit wisdomtree.com. Read the prospectus carefully before investing.
There are risks associated with investing, including possible loss of principal. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Funds focusing on a single sector generally experience greater price volatility. Investments in emerging, offshore or frontier markets are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation, intervention and political developments. Please read the Fund's prospectus for specific details regarding the Fund's risk profile.
WisdomTree Funds are distributed by ALPS Distributors, Inc.
Jeremy Schwartz is a registered representative of ALPS Distributors, Inc.
ALPS Distributors, Inc. is not affiliated with ETF Database
WIS003893 (2/2013)
About WisdomTree
WisdomTree® is a New York-based exchange-traded fund ("ETF") sponsor and asset manager. WisdomTree currently offers 47 ETFs across Equities, Currency Income, Fixed Income and Alternatives asset classes. WisdomTree also licenses its indexes to third parties for proprietary products and promotes the use of WisdomTree ETFs in 401(k) plans. WisdomTree currently has approximately $14.7 billion in ETF assets under management. For more information, please visit www.wisdomtree.com.
WisdomTree is the marketing name for WisdomTree Investments, Inc. and its wholly owned subsidiaries WisdomTree Asset Management, Inc. and WisdomTree Retirement Services, Inc. WisdomTree Asset Management, Inc. is a registered investment advisor and is the investment advisor to the WisdomTree Trust and the WisdomTree ETFs. The WisdomTree Trust is a registered open-end investment company. Each WisdomTree ETF is a series of the WisdomTree Trust. WisdomTree Retirement Services, Inc. supports the use of the WisdomTree ETFs in retirement plans by financial professionals.
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