Given the dominance of many state-run companies (more than 70% in popular Chinese benchmarks), WisdomTree thought it prudent to offer an alternative view of China—without state-run companies.
Last week I spoke with Alex Gurevich, the former head of global macro trading at JPMorgan Chase. We chatted about his views on trading in the global macro landscape, in particular Europe, Japan, emerging markets and the United States.
When investors allocate to emerging markets, they typically do so through broad-based market cap- weighted exposure. In doing so, investors are often making large investments in China and Chinese state-owned enterprises (SOE).
At a time when many investors are looking overseas for their additional portfolio allocations, the WisdomTree International Hedged Dividend Growth Index represents a marriage of two core ideas: a focus on quality companies positioned for growth, and the risk reduction properties of currency-hedged foreign allocations.