Berkshire Hathaway’s recent investment in Paytm and StoneCo are two examples of the long-run growth potential for emerging market countries. Kara Marciscano discusses a strategy that has the potential to capture growth trends in emerging market consumers and their local economies.
We aspire to be at the forefront of innovative ways to marry the benefits of the ETF structure with goals that are associated with active managers, such as outperforming market cap-weighted indexes over the long run. We call this approach to investing Modern Alpha™.
After several years of middling to poor performance, emerging markets have surged in 2016. Following a long hiatus, the enticing growth potential offered in emerging markets has started to deliver.
Over recent years, allocations to emerging markets were rare. Yet many investors would agree that the growth of the emerging market consumer class, with its huge population advantage over the developed world, could be one of the single most important factors for global economic growth going forward.
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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.
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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.
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Modern Alpha Analyst
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Over the past few years, some investors have become frustrated with the underperformance of the emerging markets (EM)—especially when compared to the U.S. markets. But there is a subset of the emerging markets, the EM consumers , that may offer a lot to get excited about.
Over the past few years, investors have become frustrated with the underperformance of the emerging markets (EM) —especially when compared to U.S. markets. But if we look at another comparison to the U.S., there may be a lot to get excited about.
In an environment where the EM consumer has commanded a premium, we feel that it is important to caution investors that not all EM consumer indexes are built alike, and some potentially offer better diversification and valuation opportunities than others.
The emerging markets have been among the most battered of asset classes over last three to four years, especially when compared with the performance in the United States. As investors begin to look for unique opportunities to position for a rebound in EM equities, the WT Consumer Growth Index is one such set of unique exposure.
As I highlighted in two previous blog posts, automobile ownership in emerging market countries is expected to see major increases, as more people enter the middle class and see their disposable income rise.