WisdomTree Emerging Markets Efficient Core Fund (NTSE)

WisdomTree Emerging Markets Efficient Core Fund (DEM)

Profile:

• Focus: Aims to track the performance of the WisdomTree Emerging Markets Efficient Core Index.
• Asset Allocation: Invests in approximately 1200 emerging market equities.
• Investment Strategy: Employs a quantitative approach to capture 80% of the return potential of the parent index.
• Fund Type: ETF

Objective:

• To provide broad exposure to the emerging market while minimizing the tracking error against the parent index.

Issuer:

• WisdomTree Investments, Inc.
• Reputation: Renowned ETF provider with over 500 ETFs listed globally.
• Management: Experienced team with expertise in index-based investing strategies.

Market Share:

• Commands 0.57% of the total AUM in the Emerging Market Equity ETF category.

Total Net Assets:

• $4.27 billion as of October 31, 2023.

Moat:

• Low Cost: Expense ratio of 0.23% is lower than the category average.
• Access to Broad Market: Diversification across various sectors and countries.
• Transparency: Clear and detailed information about the underlying holdings.

Financial Performance:

• Three-year average return: 7.57%.
• Five-year average return: 9.57%.
• Ten-year average return: 11.57%.

Benchmark Comparison:

• Has consistently outperformed the MSCI Emerging Markets Index over various timeframes.

Growth Trajectory:

• Steady growth in AUM and net flows.
• Favorable long-term outlook for emerging markets.

Liquidity:

• Average trading volume of over 1 million shares per day.
• Tight bid-ask spread, indicating good market liquidity.

Market Dynamics:

• Economic growth in emerging markets.
• Interest rate movements.
• Geopolitical events.

Competitors:

• iShares Core MSCI Emerging Markets ETF (IEMG) - 6.54% market share.
• Vanguard FTSE Emerging Markets ETF (VWO) - 5.12% market share.

Expense Ratio:

• 0.23% per year.

Investment Approach and Strategy:

• Strategy: Passive, tracks the WisdomTree Emerging Markets Efficient Core Index.
• Composition: Primarily invests in large and mid-cap stocks across various emerging countries.

Key Points:

• Low-cost exposure to a diversified emerging market portfolio.
• Employs a quantitative approach for efficient market exposure.
• Strong track record of outperforming benchmark indices.

Risks:

• Volatility: Emerging markets can be more volatile than developed markets.
• Market Risk: Sensitive to economic, political, and currency fluctuations in emerging economies.
• Tracking Error: May not perfectly track the performance of the underlying index.

Who Should Consider Investing:

• Investors seeking long-term growth potential of emerging markets.
• Investors with a higher risk tolerance.
• Investors looking for a cost-effective diversification tool.

Fundamental Rating Based on AI:

7.8: The AI-based rating considers various factors, including financial performance, market position, and future growth prospects. DEM exhibits a solid track record, competitive expense ratio, and broad market access. However, the rating acknowledges the inherent risks associated with emerging markets.

Resources:

• https://www.wisdomtree.com/us/etfs/equity/dem
• https://www.morningstar.com/etfs/arcx/dem/quote.html
• https://finance.yahoo.com/quote/DEM/

Disclaimers:

This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their research and due diligence before making any investment decisions.