Podcasts & Videos

Looking for Emerging Markets Exposure and Dividend Stocks?

February 16, 2012
Jeremy Schwartz discusses the case for DEM with Michael Johnston of ETF Database.



According to Morningstar Direct, the average turnover funds in the Diversified Emerging Markets Category was 64.8% a year while the average turnover in the U.S. Large Cap Blend category was 54.9% a year. WisdomTree's own experience for conducting transactions in the emerging markets compared to the U.S. markets shows that trading costs can be 2-3 times higher in the emerging markets than the United States.

The latest U.S. Spiva Scorecard, found here: spiva.standardandpoors.com showed that a higher percentage of active managers in the emerging markets category failed to beat the index on a 5-year basis than in the United States large cap category.

Index Definitions:

S&P 500 Index: Market capitalization-weighted index of 500 stocks selected by the Standard & Poor’s Index Committee designed to represent the performance of the leading industries in the United States economy.

MSCI Emerging Markets Index: Market capitalization index that is designed to measure equity market performance of emerging markets.

MSCI ACWI Index: Market cap-weighted index that measures the performance of the world stock market indexes covered by MSCI.

Standard Deviation is the degree to which an Index’s returns have fluctuated above or below its mean. A higher number indicates higher volatility.

Diversification does not eliminate the risk of experiencing investment losses.

Ordinary brokerage commissions apply when trading ETFs.

Jeremy Schwartz, CFA
Global Head of Research
Read Bio
Michael Johnston
Director and co-founder of ETF Database
Read Bio