Is it the right time to allocate to EM equities? The answer is nuanced and requires an approach that uses a smarter security selection methodology. Gaurav Sinha discusses the methodology behind the new WisdomTree India ex-State-Owned Enterprises Fund (IXSE).
Chinese equities have ripped higher this year, and we see catalysts to support further gains. But not all China exposures are created equal.
One of the key debates going into this year has been whether the bloodletting in emerging markets and sharp downdraft in China could turn around in 2019. Here is one smart way to add exposure to China.
It was easy to forget how downside pain in equities could feel given robust growth over the last decade, and especially the two years ending January 2018. However, volatility is back. Jeremy Schwartz explains how to prepare your equity portfolio in 2019.
Given how emerging markets have been beaten down so badly over the past few months, it is possible that, going forward, the risks are more skewed to the upside. Is it time to dip back into the asset class?
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
Kara Marciscano, CFA
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.
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.
When investing in emerging markets, investors always accept a degree of geopolitical risk. But in certain countries and regions, like China, Russia and Brazil, this risk may be even more pronounced. And when companies are partially or wholly owned by the government, known as “state-owned enterprises” (SOEs), the risk may be even more pronounced because the government may influence corporate decisions that are not necessarily in the best interests of investors.
State-owned enterprises are typically defined as companies that are either wholly or partially owned or operated by a government. Some investors believe that government ownership can negatively impact the operational aspects of a company because government-owned companies might be influenced by a broader set of interests, beyond generating profits for shareholders.
When investors allocate to emerging markets, they typically do so through broad-based market cap-weighted exposure. More recently, investors have shown interest in specific cuts or subsets of the broader emerging markets, such as country rotation, high-dividend-yield strategies, small caps, low volatility and other investment strategies.