4-Star ETFs Poised to Pop: WisdomTree Emerging Markets Equity Income

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the WisdomTree Emerging Markets Equity Income Fund (NYS: DEM) has earned a respected four-star ranking.

With that in mind, let's take a closer look at WisdomTree Emerging Markets Equity Income and see what CAPS investors are saying about the ETF right now.

WisdomTree Emerging Markets Equity Income facts

Inception

July 2007

Total Assets

$1.85 billion

Investment Approach

Seeks to track the WisdomTree Emerging Markets Equity Income Index, which measures the highest dividend yield stocks from the WisdomTree Emerging Markets Dividend Index

Expense Ratio

0.63%

Dividend Yield

4.5%

Year-to-Date / 1-Year / 3-Year Returns

(8%) / (5.4%) / 21.9%

Major Holdings with High CAPS Interest (at least 500 Active Picks) and Portfolio Weight

Taiwan Semiconductor (NYS: TSM) (3.9%)
Banco Santander (NYS: STD) (2.5%)
Mobile Telesystems (NYS: MBT) (1.2%)

Alternatives

Vanguard MSCI Emerging Markets (NYS: VWO)
iShares MSCI Emerging Markets (NYS: EEM)

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 97% of the 118 members who have rated WisdomTree Emerging Markets Equity Income believe the ETF will outperform the S&P 500 going forward. These bulls include TMFBWItime and ArfytheSeal.

About a month ago, TMFBWItime succinctly summed up the bull case: "Beaten down, lots of potential, [emerging markets] dividend is nice."

In fact, WisdomTree Emerging Markets Equity Income boasts a juicy dividend yield of 4.5%. That's higher than that of other emerging market ETFs like Vanguard MSCI Emerging Markets (2%) and iShares MSCI Emerging Markets (2.1%).

CAPS member ArfytheSeal elaborates on the ETF's positives:

- Provides diversification away from US $0.
- Is exposed heavily to telecom ...
- Pays a healthy dividends yield ... (somewhat unusual for emerging market funds -- the weighted dividend approach is the signature of fund manager Wisdom Tree).
- Is less exposed to China -- note, I like China, it's just that I already have exposure to the country, so this is a way to play emerging markets without undue country concentration

What do you think about WisdomTree Emerging Markets Equity Income, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track theWisdomTree Emerging Markets Equity Income?Add it to your watchlist.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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