Podcasts & Videos

How to Manage State Ownership Risk in Emerging Markets

Interested in learning how you can potentially tap into the higher growth rates of emerging markets by minimizing exposure to state-owned companies? Check out this video.

WisdomTree designed strategies that don’t simply own the market. We’re really looking to identify fundamentals as a way to help manage risk and also potentially boost returns. One risk that we think is underappreciated in emerging market investing is the role that state-owned enterprises can have on portfolio returns. So, in our research, we’ve actually found that state owned enterprises may not necessarily always run businesses as efficiently as privately-held companies would. So, the WisdomTree Emerging Markets ex-State-Owned Enterprises Fund, ticker XSOE, seeks to reduce exposure to companies with at least 20% ownership stakes by government in order to bias a portfolio to more cyclical sectors that we believe can really tap into the higher growth rates of emerging markets.