Middle East equities have had a “lost decade” that many investors would rather forget. Yet our Middle East Dividend ETF, GULF, witnessed spells during which it had diversified emerging market risk considerably
Whether you are looking for opportunities in the marketplace where momentum is running (China tech, emerging markets, India, and the European domestic economy) or looking for opportunities where markets have lagged other parts of the world (the Middle East, the United Kingdom, Japanese financials, and U.S. small caps), this look at top and bottom performers might give you a year-end shopping list from which to choose.
Saudi Arabia may finally be turning the corner culturally, politically and economically. Recent developments, such as allowing female driving, are at least a baby step in the right direction. The WisdomTree Middle East Dividend Fund (GULF), which we launched in 2008. Here is the case for it.
At WisdomTree, we tend to do things differently, and in doing so we offer unique exposures to factors, markets or asset classes that we believe may be underrepresented. For some, it may come as a surprise that we have been offering exposure to Middle Eastern dividend-paying stocks for more than nine years, but for us it is just another one of our options coming up on a 10-year live track record.
If January was any indication, we are all going to be in for a year of news flow and media frenzy like few we have ever seen. Showcasing our top 5 performers in January, we highlight which global markets were doing particularly well at the beginning of 2017.
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.
The decision by the MSCI index family to upgrade Qatar and United Arab Emirates from "frontier markets" to "emerging markets" is causing ripple effects throughout the investment world—in both the performance of the underlying markets and shifting allocations with strategies dedicated to frontier markets.
There were times in the not-too-distant past when more accessible emerging market countries had lower accessibility than they do at present—each has been moving along its own continuum. UAE equities could be at an inflection point on their path, leading to potentially greater access for foreigners and increased liquidity in the near future.
While it may take time for the negative sentiment to change within traditional emerging markets, I wanted to highlight one standout of relative strength. Interestingly, when one looks at various emerging market countries, a number of the “emerging” emerging markets—or the countries that are often included in frontier market indexes—have diverged from some of the more popular emerging countries.