Valuing companies based on dividends is well-documented and understood. In practice, though, this theory has been stressed over the last decade. Matt Wagner illustrates the impact on fundamentals from an approach that combines dividends and profitability.
Investing in emerging markets can have daunting levels of risk. Yet many investors continue putting their emerging markets allocation into one cap-weighted product, hoping it pays off without much damage. Instead, we suggest that our diversified emerging markets barbell approach has the potential to give investors the yield, volatility mitigation and returns they are looking for.
U.S. mid-caps have outperformed large caps over the past decade. According to the efficient market hypothesis, any excess returns are simply a by-product of greater risk. We challenge this theory with the decade-long track record of the WisdomTree U.S. MidCap Dividend Fund (DON).
Let’s face it, emerging markets are not the easiest topic to discuss in today’s world, which is exactly why now could be a great time to consider their equities.
When the VIX hit 36 at the end of December 2018, the last thing we would have thought would be that risk-on strategies might have a strong month in January 2019. But that’s exactly what happened.
Jeremy J Siegel
Senior Investment Strategy Advisor
CEO of WisdomTree
Jeremy Schwartz, CFA
Executive Vice President, Global Head of Research
Christopher Gannatti, CFA
Head of Research, Europe
Christopher Gannatti began at WisdomTree as a Research Analyst in December 2010, working directly with Jeremy Schwartz, CFA®, Director of Research. In January of 2014, he was promoted to Associate Director of Research where he was responsible to lead different groups of analysts and strategists within the broader Research team at WisdomTree. In February of 2018, Christopher was promoted to Head of Research, Europe, where he will be based out of WisdomTree’s London office and will be responsible for the full WisdomTree research effort within the European market, as well as supporting the UCITs platform globally. Christopher came to WisdomTree from Lord Abbett, where he worked for four and a half years as a Regional Consultant. He received his MBA in Quantitative Finance, Accounting, and Economics from NYU’s Stern School of Business in 2010, and he received his bachelor’s degree from Colgate University in Economics in 2006. Christopher is a holder of the Chartered Financial Analyst designation.
Head of Fixed Income Strategy
Tripp Zimmerman, CFA
Head of Fixed Income & Currency
Associate Director, Asset Allocation and Modern Alpha
Head of Capital Markets
Associate Director of Capital Markets
Head of Europe
Joseph Tenaglia, CFA
Associate Director, Asset Allocation
Jianing Wu joined WisdomTree as a Research Analyst in October 2018. She is responsible for analyzing market trends and helping support WisdomTree’s research efforts. Previously, Jianing completed internships and projects at Geode Capital, Starwint Capital, and Invesco Great Wall Fund Management with a focus in quantitative research. Jianing received her M.S in Finance from the Massachusetts Institute of Technology. She graduated with honors from Boston College with degrees in Mathematics and Philosophy.
Jeff Weniger, CFA
Director, Asset Allocation
Alejandro Saltiel, CFA
Associate Director of Modern Alpha
Alejandro Saltiel joined WisdomTree as a Quantitative Research Analyst in May 2017. He is responsible for quantitative research on WisdomTree’s products and global equity markets. Prior to joining WisdomTree, Alejandro worked at HSBC Asset Management’s Mexico City office as Portfolio Manager for multi-asset mutual funds. He started his career working at a boutique hedge fund that specialized on trading options on sector-levered ETFs. Alejandro received his Master’s in Financial Engineering degree from Columbia University in 2017 and a Bachelor’s in Engineering degree from the Instituto Tecnológico Autónomo de México (ITAM) in 2010. He is a holder of the Chartered Financial Analyst designation.
Matt Wagner, CFA
Modern Alpha Analyst
Matt Wagner joined WisdomTree in May 2017 as a member of the Research team. He is responsible for research on WisdomTree’s products and communicating the firm’s views on the markets. Matt started his career at Morgan Stanley, working as an analyst in Treasury Capital Markets from 2015 to 2017 where he focused on unsecured funding planning, execution and risk management. Matt graduated from Boston College in 2015 with a B.A. in International Studies with a concentration in Economics. Matt is a holder of the Chartered Financial Analyst designation.
Investment Strategy Analyst
Brian Manby joined WisdomTree in October 2018 as an Investment Strategy Analyst. He is responsible for assisting in the creation and analysis of WisdomTree’s model portfolios, as well as helping support the firm’s research efforts. Prior to joining WisdomTree, he worked for FactSet Research Systems, Inc. as a Senior Consultant, where he assisted clients in the creation, maintenance and support of FactSet products in the investment management workflow. Brian received a B.A. as a dual major in Economics and Political Science from the University of Connecticut in 2016, and is pursuing the Chartered Financial Analyst designation.
Kara Marciscano, CFA
Quantitative Research Analyst
Along with search for income growth opportunities while global growth is scarce, there is a broader and long-term thematic focus on quality investing and the “quality” factor in both the academic and investment worlds. WisdomTree has been leading this charge with a family of Indexes that cover the major regions and include selection factors designed to pick dividend-paying stocks with quality and growth characteristics.
WisdomTree has been a pioneer in two important categories of indexes and exchange-traded funds: small-cap equities and currency-hedged equities. With the launch of the WisdomTree Global SmallCap Dividend Index (WTGS) and the WisdomTree Global Hedged SmallCap Dividend Index (WTGSH), WisdomTree combines our innovative small-cap dividend methodology into a global index and also allows the choice to currency hedge.
It’s difficult to think about global equity markets today without considering the “liftoff” from zero for the U.S. Federal Funds Target Rate that may happen before the end of 2015. If the Federal Reserve (Fed) is going to raise short-term interest rates, what does this mean for an investment in emerging market equities?
In the current low-interest-rate environment, focusing on dividends has been popular. But currency movements could wipe out any benefit of a dividend-focused approach in developed international equities.
When we talk about emerging market equities today, we find that people are disappointed: there has been underperformance of late. Here, we use dividend yield to measure equity valuations, when searching for opportunities.