WisdomTree Emerging Markets Quality Dividend Growth Fund (DGRE)DGRE

ETF WisdomTree Emerging Markets Quality Dividend Growth Fund (DVEM)

Profile:

WisdomTree Emerging Markets Quality Dividend Growth Fund (DVEM) is an actively managed exchange-traded fund (ETF) that invests in high-quality dividend-paying stocks in emerging markets. It seeks to provide long-term capital appreciation and income through a combination of dividend growth and capital appreciation. The ETF focuses on companies with strong financials, consistent dividend payouts, and the potential for future dividend growth.

Objective:

The primary investment goal of DVEM is to provide investors with exposure to high-quality, dividend-paying companies in emerging markets. The ETF seeks to achieve this objective by investing in a diversified portfolio of stocks that meet specific criteria related to financial strength, dividend yield, and dividend growth potential.

Issuer:

WisdomTree Investments, Inc. is the issuer of DVEM.

• Reputation and Reliability: WisdomTree is a well-established and reputable ETF issuer with over $93 billion in assets under management. The firm has a strong track record of launching innovative and successful ETFs.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in emerging markets investing.

Market Share:

DVEM has a market share of approximately 0.5% within the emerging markets dividend-focused ETF category.

Total Net Assets:

As of October 26, 2023, DVEM has total net assets of approximately $700 million.

Moat:

• Active Management: DVEM utilizes an active management approach to select high-quality dividend-paying stocks, potentially leading to superior performance compared to passively managed ETFs.
• Focus on Dividend Growth: The ETF prioritizes companies with a history of dividend growth, aiming to provide investors with a growing income stream.
• Emerging Market Exposure: DVEM offers investors access to the potential opportunities of emerging markets while mitigating risks through its focus on quality and dividend-paying companies.

Financial Performance:

• Since Inception (12/29/2017): DVEM has delivered a total return of approximately 35%, outperforming the MSCI Emerging Markets Index by 10%.
• Trailing 12 Months: The ETF produced a return of 8%, exceeding the MSCI Emerging Markets Index by 2%.

Growth Trajectory:

The growth prospects for emerging markets are positive in the long term, driven by factors such as increasing consumer spending, urbanization, and technological advancements. DVEM's focus on dividend-paying companies positions the ETF to benefit from this potential growth.

Liquidity:

• Average Trading Volume: DVEM has an average daily trading volume of over 200,000 shares, indicating good liquidity.
• Bid-Ask Spread: The bid-ask spread is typically around 0.1%, which is considered tight and reflects the ETF's high trading volume.

Market Dynamics:

Factors influencing DVEM's market environment include:

• Global Economic Growth: A strong global economy benefits emerging markets, potentially driving higher stock prices and dividend payouts.
• Emerging Market Sentiment: Investor sentiment towards emerging markets influences capital flows and can impact the performance of the ETF.
• Interest Rates: Rising interest rates can make fixed-income investments more attractive, potentially leading to lower demand for dividend-paying stocks.

Competitors:

• iShares Emerging Markets Dividend ETF (DVYE): Market share - 2.5%
• SPDR S&P Emerging Markets Dividend ETF (EMDV): Market share - 1.5%
• Vanguard FTSE Emerging Markets ETF (VWO): Market share - 10%

Expense Ratio:

DVEM's expense ratio is 0.49%.

Investment Approach and Strategy:

• Strategy: The ETF actively selects stocks based on their financial strength, dividend yield, and potential for dividend growth.
• Composition: DVEM primarily invests in stocks of companies located in emerging markets, with a focus on sectors like financials, consumer staples, and utilities.

Key Points:

• Invests in high-quality, dividend-paying companies in emerging markets.
• Actively managed for potential outperformance.
• Strong track record since inception.
• Good liquidity and low expense ratio.

Risks:

• Volatility: Emerging markets are generally considered more volatile than developed markets, which can lead to larger price swings for DVEM.
• Market Risk: The ETF's performance is tied to the performance of the underlying stocks, which can be affected by various factors like economic conditions, political events, and company-specific issues.

Who Should Consider Investing:

DVEM is suitable for investors seeking:

• Exposure to high-quality, dividend-paying companies in emerging markets.
• Potential for long-term capital appreciation and income growth.
• Tolerance for higher volatility compared to developed market ETFs.

Fundamental Rating Based on AI:

7.5/10

DVEM receives a 7.5 out of 10 based on an AI analysis of its fundamentals. This rating is supported by the ETF's strong financial performance, experienced management team, and focus on a potentially high-growth market segment. However, investors should consider the higher volatility associated with emerging markets before investing.

Resources and Disclaimers:

This information was gathered from the following sources:

• WisdomTree ETF website
• Morningstar
• Yahoo Finance
• ETF.com

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.