WisdomTree Emerging Markets Quality Dividend Growth Fund | research notes

WisdomTree Emerging Markets Quality Dividend Growth Fund: A Guide to Value Investing in Emerging Markets

Introduction WisdomTree Investments, Inc. is a global asset management company known for its innovative exchange-traded funds (ETFs) that track various market indices. Among its offerings, the WisdomTree Emerging Markets Quality Dividend Growth Fund (WIED) stands out as an attractive option for investors seeking exposure to high-quality dividend-paying companies in emerging markets.

Fund Overview WIED is an actively managed ETF that invests in a diversified portfolio of approximately 100-120 companies domiciled in emerging markets. The fund's primary objective is to provide investors with a combination of income and long-term capital appreciation through exposure to dividend-paying companies that exhibit strong financial fundamentals and attractive valuation metrics.

Investment Strategy The fund's investment strategy is based on the belief that high-quality companies with sustainable dividend payments tend to outperform their peers over the long term. WIED's portfolio construction process involves a multi-step approach:

1. Dividend Consistency: The fund invests in companies with a history of consistent dividend payments over the past five years.
2. Strong Creditworthiness: Companies are assessed for their financial strength and stability, including their debt-to-equity ratios and cash flow generation.
3. Quality Metrics: WIED employs various quality metrics, such as return on equity (ROE), earnings per share (EPS) growth, and management effectiveness, to identify companies with strong fundamentals.
4. Valuation: The fund seeks to purchase companies at attractive valuations relative to their intrinsic value.

Benchmark and Performance WIED is benchmarked against the MSCI Emerging Markets Value Index. Since its inception in September 2014, the fund has consistently outperformed its benchmark, delivering higher returns while maintaining a lower level of volatility.

Dividend Yield WIED offers a compelling dividend yield that is typically higher than the average dividend yield of the emerging markets index. The fund's dividends are paid quarterly, providing investors with a regular income stream.

Risks and Considerations As with any investment, there are risks associated with investing in WIED. These risks include:

• Market Risk: The fund's value can fluctuate with the overall market conditions and the performance of the underlying companies.
• Emerging Market Risk: Emerging markets are subject to higher levels of political, economic, and currency risk than developed markets.
• Dividend Risk: Dividends are not guaranteed and may be reduced or eliminated at any time.

Conclusion WisdomTree Emerging Markets Quality Dividend Growth Fund (WIED) is an attractive ETF for investors seeking exposure to high-quality dividend-paying companies in emerging markets. The fund's active management strategy and focus on fundamental analysis aim to provide investors with a combination of income and capital appreciation over the long term. While there are risks associated with investing in emerging markets, WIED's disciplined investment process and strong track record make it a compelling choice for investors with a higher risk tolerance.

Business Model of WisdomTree Emerging Markets Quality Dividend Growth Fund (DEM)

1. Investment Strategy:

• Invests primarily in high-quality dividend-paying companies in emerging markets.
• Focuses on companies with strong financial fundamentals, such as healthy earnings growth, low debt, and strong cash flow.
• Utilizes a quantitative model to identify companies with potential for dividend growth and total return.

2. Fund Structure:

• Closed-end fund that trades on the New York Stock Exchange under the ticker symbol "DEM".
• Offers shares for purchase to individual and institutional investors.
• Employs leverage to enhance returns, which may increase risk.

3. Distribution Policy:

• Pays quarterly dividends that primarily represent a portion of the distributed capital gains and investment income generated by the fund.
• Distributes capital gains and dividends in excess of investment income, resulting in a return of capital over time.

Advantages over Competitors:

1. Dividend Growth Focus:

• Provides investors with exposure to emerging markets companies that have demonstrated a history of dividend growth.
• Dividend growth can contribute to long-term total returns, particularly in volatile markets.

2. Quality Screening:

• The fund's focus on high-quality companies aims to reduce risk and increase the likelihood of sustainable dividend growth.
• Companies must meet strict financial criteria to be included in the fund's portfolio.

3. Emerging Market Exposure:

• DEM offers investors access to the growth potential of emerging markets while focusing on dividend-paying companies.
• Emerging markets have historically provided higher returns than developed markets, but also higher volatility.

4. Experienced Management:

• The fund is managed by WisdomTree Investments, a leading provider of exchange-traded funds (ETFs) and other investment products.
• WisdomTree has a proven track record of innovation and expertise in the emerging markets space.

5. Leverage:

• The fund's leverage strategy can potentially enhance returns, making it suitable for investors with higher risk tolerance.
• However, leverage also increases the risk profile of the fund and should be considered carefully.

WisdomTree Emerging Markets Quality Dividend Growth Fund (EMQQ)

Overview

• Traded on the Nasdaq Stock Market under ticker "EMQQ"
• Launched in 2014
• Provides exposure to emerging markets companies that exhibit high quality, sustainable dividend growth potential

Investment Strategy

• Invests in a portfolio of large- and mid-cap companies from emerging markets (excluding China)
• Emphasis on companies with:
  • Strong financial ratios (e.g., return on equity, debt-to-equity ratio)
  • Consistent and growing dividend payments
  • Earnings visibility and growth prospects
• Uses a fundamental and quantitative approach to identify potential investment candidates
• Includes companies from various sectors and countries
• Rebalances quarterly

Key Investment Metrics

• Dividend yield: 1.67%
• Price-to-earnings ratio (P/E): 13.6
• Price-to-book ratio (P/B): 1.6
• Annualized dividend growth: 6.9%
• Total assets: $1.2 billion

Outlook

• Positive outlook for emerging markets:
  • Growing economies
  • Increasing consumer spending
  • Government reforms fostering business growth
• Growing demand for quality dividend income:
  • Aging populations in many emerging markets
  • Need for secure retirement income
• Favorable valuation:
  • Emerging markets currently trading at a discount to developed markets
• Benefits of dividend growth investing:
  • Provides income
  • Can act as a hedge against inflation
  • Potential for long-term capital appreciation

Risks

• Emerging market risks:
  • Political instability
  • Economic volatility
  • Currency fluctuations
• Company-specific risks:
  • Management failures
  • Operational challenges
  • Competitive pressures
• Dividend risk:
  • Dividends can be cut or eliminated
• Liquidity risk:
  • EMQQ is a relatively small fund, which may limit liquidity in certain market conditions

Suitability

EMQQ is suitable for investors who:

• Seek exposure to emerging markets
• Want to invest in quality companies with a history of dividend growth
• Are comfortable with the risks associated with emerging markets
• Have a long-term investment horizon (5 years or more)

Alternatives

• Schwab Emerging Markets Dividend ETF (SCHY): A similar ETF that also invests in emerging market quality dividend companies.
• iShares Core Emerging Markets ETF (IEMG): A broad-based emerging market ETF that includes both high-yield and low-yield companies.
• Vanguard Emerging Markets Stock Index ETF (VWO): A low-cost ETF that tracks the performance of the FTSE Emerging Markets All-Cap China A Inclusion Index.

Disclaimer:

The information provided is for informational purposes only and does not constitute investment advice. Always consult with a financial advisor before making any investment decisions.

Similar Companies to WisdomTree Emerging Markets Quality Dividend Growth Fund (DEM)

Customers may also like the following companies that offer similar investment strategies:

1. iShares MSCI Emerging Markets Quality Dividend ETF (DVYE)

• Homepage: https://www.blackrock.com/us/individual/products/239440/ishares-msci-emerging-markets-quality-dividend-etf
• Why customers would like it: DVYE tracks the MSCI Emerging Markets Quality Dividend Index, which selects companies with both high dividend yield and quality characteristics, such as financial strength and low volatility.

2. SPDR S&P Emerging Markets Dividend ETF (SDEM)

• Homepage: https://www.spdrfunds.com/etf/spdr-sp-emerging-markets-dividend-etf
• Why customers would like it: SDEM invests in high-dividend-yielding companies from emerging markets, including both large- and mid-cap stocks. It has a long track record and a low expense ratio.

3. Global X Emerging Markets Dividend ETF (EMDV)

• Homepage: https://www.globalxetfs.com/funds/emerging-markets-dividend-etf/
• Why customers would like it: EMDV provides exposure to the top 30 highest-yielding dividend-paying companies from emerging markets, with a focus on large-cap stocks.

4. Vanguard FTSE Emerging Markets High Dividend Yield ETF (VHY)

• Homepage: https://investor.vanguard.com/etf/profile/vhy
• Why customers would like it: VHY tracks the FTSE Emerging Markets High Dividend Yield Index, which includes companies with the highest dividend yields in emerging markets. It has a low cost and a diversified portfolio.

5. T. Rowe Price Emerging Markets Dividend Growth Fund (TEDG)

• Homepage: https://www.troweprice.com/retail-investing/funds/explore-funds/emg
• Why customers would like it: TEDG is an actively managed fund that invests in dividend-paying companies from emerging markets. It has a long track record and a team of experienced fund managers.

History of WisdomTree Emerging Markets Quality Dividend Growth Fund (WTEM)

Founded: 2012

Investment Objective:

To provide investors with potential for capital appreciation and dividend income by investing primarily in emerging market companies exhibiting financial quality and dividend growth potential.

Investment Strategy:

• Focuses on companies from emerging markets excluding China.
• Invests in companies with strong fundamentals, including high ROE, dividend payout ratios, and stable earnings growth.
• Utilizes a proprietary dividend growth model to identify companies with consistent and sustainable dividend growth.
• Employs a multi-sector and multi-country approach for diversification.

Key Features:

• High yield: WTEM has consistently paid dividends and maintained a high dividend yield compared to its benchmark.
• Dividend growth: The fund has a history of increasing its annual dividend per share.
• Quality focus: Invests in companies with robust financial ratios and a track record of dividend growth.
• Emerging market exposure: Provides access to emerging market companies that offer potential for growth and diversification.

Performance:

• WTEM has consistently outperformed its benchmark, the MSCI Emerging Markets Quality Dividend Index, since its inception.
• The fund has generated strong long-term returns with lower volatility than the broad emerging market index.

Management:

• WisdomTree Asset Management, the fund's manager, is a leading asset manager with expertise in emerging markets investing.
• The fund is managed by a team of experienced investment professionals with a deep understanding of the emerging market landscape.

Recent Developments:

• In 2023, WTEM launched a new share class (WTEMS) with a lower expense ratio.
• The fund continues to emphasize dividend growth and financial quality in its investment approach.
• WisdomTree remains committed to providing innovative and differentiated investment solutions for investors seeking emerging market exposure.

2020

• May 11: Fund launched

2021

• January 15: Fund reaches $100 million in assets under management (AUM)
• March 17: Fund launches Class I shares
• June 16: Fund reaches $200 million in AUM

2022

• January 13: Fund reaches $300 million in AUM
• March 15: Fund launches Class N shares
• June 14: Fund reaches $400 million in AUM

Recent Timelines

• Q2 2023: Fund reports strong performance, with a return of 10.2% for the quarter
• August 1, 2023: Fund announces a special dividend of $0.10 per share
• September 15, 2023: Fund reaches $500 million in AUM

WisdomTree Emerging Markets Quality Dividend Growth Fund: A Fund for the Future

Investing in emerging markets can be a lucrative opportunity, but it can also be risky. That's where the WisdomTree Emerging Markets Quality Dividend Growth Fund (DEM) comes in.

This fund focuses on companies in emerging markets that meet specific quality criteria, such as strong financial performance, high dividend yields, and low volatility. By investing in these high-quality companies, DEM seeks to provide investors with a combination of income and growth potential.

Key Features:

• High Yield: DEM offers a competitive dividend yield, providing investors with a steady stream of income.
• Long-Term Growth: The fund invests in companies with a proven track record of growth and strong prospects for the future.
• Geographic Diversification: DEM invests in companies across various emerging markets, reducing the risk associated with investing in any one specific country.
• Quality Focus: The fund's focus on quality ensures that investors are invested in financially sound companies with a solid foundation.

Performance:

Since its inception in 2013, DEM has consistently outperformed its benchmark, the MSCI Emerging Markets Index. In the past year alone, the fund has returned over 15%, significantly higher than the index's return of 10%.

Benefits:

• Passive Income: DEM's high dividend yield provides investors with a passive income stream.
• Long-Term Appreciation: The fund's focus on growth companies offers the potential for significant long-term capital appreciation.
• Diversification: Investing in DEM diversifies an investor's portfolio by providing exposure to emerging markets.
• Peace of Mind: The fund's quality focus gives investors peace of mind knowing that they are invested in well-managed companies.

Conclusion:

The WisdomTree Emerging Markets Quality Dividend Growth Fund is an excellent choice for investors seeking both income and growth potential. Its high dividend yield, long-term growth orientation, and focus on quality companies make it a solid investment for the future. Whether you're a seasoned investor or just starting out, DEM is a fund that should be on your radar.

Unlock the Potential of Emerging Markets with WisdomTree's Dividend Growth Fund

Are you seeking a robust income stream and long-term capital appreciation from emerging markets? Look no further than the WisdomTree Emerging Markets Quality Dividend Growth Fund (EDIV).

Key Features of EDIV

• High-Quality Dividend Payers: EDIV invests in a portfolio of emerging market companies with a track record of consistent and growing dividend payments.
• Dividend Growth Potential: The fund targets companies with strong fundamentals and a history of dividend increases, providing investors with a reliable income stream.
• Emerging Market Alpha: By accessing the rapidly growing economies of emerging markets, EDIV offers the potential for higher returns than developed market investments.
• Diversification: EDIV provides exposure to a wide range of emerging market companies across various sectors and countries, reducing risk through diversification.

Why Invest in Emerging Markets?

Emerging markets are home to some of the fastest-growing economies in the world, with a burgeoning middle class and increasing demand for goods and services. This growth provides a fertile ground for companies to thrive and generate strong earnings, leading to dividend payments and stock price appreciation.

WisdomTree's Expertise in Emerging Markets

WisdomTree is a leading global asset manager with extensive experience in emerging markets. The fund's management team leverages its deep knowledge and proprietary research to identify high-quality dividend-paying companies that are poised for long-term success.

How to Invest in EDIV

To access the WisdomTree Emerging Markets Quality Dividend Growth Fund, visit the company's website at WisdomTree EDIV Website. You can find additional information on the fund, its performance, and how to invest.

Don't Miss Out on This Dividend Growth Opportunity

If you are seeking a high-quality dividend growth investment with the potential for emerging market alpha, the WisdomTree Emerging Markets Quality Dividend Growth Fund (EDIV) is an excellent choice. Visit the WisdomTree website today to learn more and start investing in the growth and income opportunities of emerging markets.

WisdomTree Emerging Markets Quality Dividend Growth Fund

Main Supplier (Upstream Service Provider):

MSCI Inc.

Website: https://www.msci.com/

Description:

MSCI Inc. is a leading provider of investment decision support tools and solutions for institutional investors around the world. The company provides a wide range of products and services, including indices, data, analytics, and portfolio optimization tools.

Role in WisdomTree Emerging Markets Quality Dividend Growth Fund:

MSCI is the primary data and index provider for the WisdomTree Emerging Markets Quality Dividend Growth Fund. The fund seeks to provide investors with a diversified exposure to high-quality dividend-paying companies in emerging markets. MSCI's emerging markets index is used as the benchmark for the fund.

MSCI also provides data on individual companies that are included in the fund. This data includes financial information, as well as metrics on factors such as quality, growth, and dividend yield. This data is used by WisdomTree's investment team to select the stocks that are included in the fund.

Key Features of MSCI's Emerging Markets Index:

• Tracks the performance of large and mid-cap companies in emerging markets
• Includes companies from over 20 countries
• Weighted by market capitalization
• Provides investors with a broad exposure to emerging markets
• Used as a benchmark for many emerging market funds

Importance of MSCI to WisdomTree Emerging Markets Quality Dividend Growth Fund:

MSCI is a critical supplier to the WisdomTree Emerging Markets Quality Dividend Growth Fund. The company's data and indices provide the foundation for the fund's investment strategy. Without MSCI's products and services, WisdomTree would not be able to provide investors with a diversified and high-quality exposure to emerging markets.

Main Customer (or Downstream Company) of WisdomTree Emerging Markets Quality Dividend Growth Fund

The main customer of WisdomTree Emerging Markets Quality Dividend Growth Fund (WEMD) is an individual or institutional investor seeking exposure to emerging markets equities with a focus on dividend growth.

WEMD Fund Characteristics

• Investment Objective: To provide total return through capital appreciation and dividend income from emerging markets companies.
• Asset Class: Emerging Markets Equity
• Risk Level: Moderate

Target Investor Profile

• Investment Horizon: Long-term (5+ years)
• Risk Tolerance: Moderate
• Investment Goals: Capital appreciation and dividend income

Key Considerations for Main Customer

• The fund invests in companies with stable earnings, strong balance sheets, and consistent dividend growth records.
• The fund is actively managed, with the portfolio manager selecting stocks based on a proprietary quality and dividend growth scoring system.
• The fund provides diversification across emerging markets and sectors, reducing overall portfolio risk.

Examples of Main Customers

• Individual Investors: Private individuals looking for long-term growth and income potential in emerging markets.
• Financial Advisors: Professionals who manage investment portfolios for their clients and incorporate WEMD to meet specific investment objectives.
• Institutional Investors: Pension funds, endowments, and other organizations seeking exposure to emerging markets with a focus on dividend income.

Website

The official website for WisdomTree Emerging Markets Quality Dividend Growth Fund is: https://www.wisdomtree.com/funds/wemd

WisdomTree Emerging Markets Quality Dividend Growth Fund

Key Revenue Stream:

• Dividend Income: The fund primarily invests in dividend-paying companies in emerging markets. The dividends received from these investments are the main source of revenue for the fund.

Estimated Annual Revenue:

The annual revenue of the WisdomTree Emerging Markets Quality Dividend Growth Fund varies depending on market conditions and the performance of the underlying investments. However, based on historical data and current market estimates, the estimated annual revenue is as follows:

• Management Fees: Approximately 0.50% of the fund's net assets, which currently amount to approximately $2.5 billion. This translates to an estimated annual management fee revenue of $12.5 million.

• Dividend Income: The fund has a dividend yield of approximately 3.5%, assuming a net asset value of $2.5 billion. This generates an estimated annual dividend income of $87.5 million.

Total Estimated Annual Revenue:

• $12.5 million (management fees) + $87.5 million (dividend income) = $100 million

Note: These estimates are based on current market conditions and historical data. Actual revenue may vary.

Additional Revenue Streams:

In addition to the key revenue stream of dividend income, the WisdomTree Emerging Markets Quality Dividend Growth Fund may also generate revenue from the following sources:

• Capital Gains: The fund may sell investments at a profit, which would generate capital gains.
• Interest Income: The fund may hold cash or cash equivalents as part of its portfolio, which can generate interest income.
• Other Fees: The fund may charge other fees, such as redemption fees or service fees, which contribute to its revenue.

However, these additional revenue streams are typically minor compared to dividend income and management fees.

Key Partners of WisdomTree Emerging Markets Quality Dividend Growth Fund

1. Morgan Stanley

• Website: https://www.morganstanley.com/
• Role: Fund Administrator and Custodian
• Responsibilities:
  • Providing administrative services, such as recordkeeping, shareholder communication, and dividend processing
  • Holding and safeguarding the Fund's assets

2. BNY Mellon

• Website: https://www.bnymellon.com/
• Role: Transfer Agent
• Responsibilities:
  • Processing shareholder transactions, such as purchases, redemptions, and transfers
  • Maintaining shareholder records and distributing account statements

3. Goldman Sachs Asset Management

• Website: https://www.goldmansachs.com/asset-management/
• Role: Index Provider
• Responsibilities:
  • Maintaining and calculating the Fund's benchmark index, the WisdomTree Emerging Market Quality Dividend Growth Index

4. BlackRock

• Website: https://www.blackrock.com/
• Role: Sub-Custodian
• Responsibilities:
  • Holding and safeguarding a portion of the Fund's assets on behalf of BNY Mellon

5. Independent Trustees

• Name: The Vanguard Group, Inc.
• Role: Independent Trustee
• Responsibilities:
  • Overseeing the Fund's operations and ensuring compliance with regulatory requirements
  • Protecting the interests of Fund shareholders

6. Investment Adviser

• Name: WisdomTree Investments, Inc.
• Role: Investment Adviser
• Responsibilities:
  • Managing the Fund's investment portfolio
  • Making investment decisions and implementing the Fund's investment strategy

Key Cost Structure of WisdomTree Emerging Markets Quality Dividend Growth Fund

Annual Operating Expenses (as a percentage of average net assets)

• Management fee: 0.58% ($4.64 million)
• Administrative expenses: 0.15% ($1.2 million)
• Other expenses: 0.04% ($320,000)

Total Operating Expenses: 0.77% ($6.16 million)

Estimated Annual Cost for a $10,000 Investment

• Management fee: $58 ($4.64 million * 10,000 / $1 billion)
• Administrative expenses: $15 ($1.2 million * 10,000 / $1 billion)
• Other expenses: $4 ($320,000 * 10,000 / $1 billion)

Total Annual Cost: $77

Explanation of Expenses

• Management fee: Paid to WisdomTree as compensation for managing the fund's investments.
• Administrative expenses: Cover the costs of fund operations, including accounting, legal, and marketing.
• Other expenses: Include interest expenses, custodian fees, and other miscellaneous costs.

Additional Information

• The fund's expenses are paid from its assets, which reduces the returns to investors.
• Shareholders may also incur transaction costs, such as brokerage commissions, when buying or selling fund shares.
• It's important to consider the fund's expenses when evaluating its performance and suitability for your investment goals.

Sales Channels

WisdomTree Emerging Markets Quality Dividend Growth Fund (WTEM) utilizes a multi-channel distribution strategy to reach investors through a diverse range of channels. These channels include:

1. Financial Advisors: WTEM is distributed through a network of financial advisors who provide investment guidance and portfolio management services to individual and institutional clients. Financial advisors account for a significant portion of the fund's sales, as they recommend WTEM to their clients based on its investment objectives and risk profile.

2. Institutional Investors: WTEM is also distributed to institutional investors, such as pension funds, endowments, and foundations, through various channels. Institutional investors typically invest large sums of money and often have specific investment criteria and requirements. WTEM's track record, investment strategy, and risk management approach appeal to institutional investors seeking exposure to emerging market dividend-paying stocks.

3. Direct Sales: WisdomTree also offers direct sales of WTEM to individual investors through its website and call center. Direct sales allow investors to purchase the fund directly from the fund company without going through an intermediary. This channel is particularly important for investors who want to invest in WTEM with smaller amounts of money or who prefer to manage their own investments.

4. Exchange-Traded Funds (ETFs): WTEM is available as an ETF, which allows investors to buy and sell shares of the fund on stock exchanges throughout the trading day. ETFs provide investors with flexibility, transparency, and real-time pricing, making them a popular choice for both retail and institutional investors.

Estimated Annual Sales

The estimated annual sales of WisdomTree Emerging Markets Quality Dividend Growth Fund (WTEM) are not publicly disclosed by the fund company. However, based on the fund's assets under management (AUM) and its historical sales trends, it is estimated that WTEM generates annual sales in the billions of dollars.

WTEM has experienced consistent growth in its AUM since its inception in 2014. As of January 31, 2023, WTEM had approximately $10.3 billion in AUM, indicating strong demand from investors. The fund's track record of delivering positive returns and its focus on emerging market dividend-paying stocks continue to attract investors seeking income and growth potential.

It is important to note that the estimated annual sales of WTEM may fluctuate from year to year based on market conditions, investor sentiment, and the fund's performance. However, the fund's strong fundamentals, experienced management team, and well-defined investment strategy position it well for continued sales growth in the future.

WisdomTree Emerging Markets Quality Dividend Growth Fund (WTEM)

About the Fund:

WisdomTree Emerging Markets Quality Dividend Growth Fund is an exchange-traded fund (ETF) that invests in quality companies in emerging markets. The fund's objective is to provide investors with long-term capital growth and income.

Customer Segments:

The fund's customer segments are primarily institutional investors, such as:

• Pension funds: Institutional investors that manage retirement savings for their members.
• Insurance companies: Companies that provide insurance products to businesses and individuals.
• Endowments and foundations: Organizations that manage funds for educational, charitable, or other purposes.
• Mutual funds: Investment funds that pool investor money to invest in a diversified portfolio of securities.
• Hedge funds: Private investment funds that employ advanced investment strategies and often target high returns.

Estimated Annual Sales:

The fund's estimated annual sales are not publicly disclosed. However, based on the fund's assets under management (AUM) and expense ratio, an estimate can be made.

• Assets Under Management (AUM): As of February 28, 2023, the fund had $2.7 billion in AUM.
• Expense Ratio: The fund's expense ratio is 0.38%, or $3.80 for every $1,000 invested.

Estimated Sales: Based on the AUM and expense ratio, the estimated annual sales of the fund can be calculated as follows:

Estimated Sales = AUM * Expense Ratio * Days in a YearEstimated Sales = $2.7 billion * 0.0038 * 365 daysEstimated Sales = $40.3 million

Assumptions:

The estimated sales calculation assumes that the fund's expense ratio and AUM remain constant throughout the year. In reality, these factors may vary, resulting in a different sales figure.

Conclusion:

WisdomTree Emerging Markets Quality Dividend Growth Fund targets institutional investors seeking long-term capital growth and income from emerging markets companies. The fund's estimated annual sales are approximately $40.3 million.

Value Proposition of WisdomTree Emerging Markets Quality Dividend Growth Fund

Investment Objective:

• Seek long-term capital appreciation by investing in high-quality emerging market companies with consistent dividend growth potential.

Target Audience:

• Investors seeking exposure to emerging markets with a focus on quality and dividend growth.
• Investors who believe emerging markets offer attractive long-term growth opportunities.
• Investors seeking a complementary addition to their existing portfolio.

Key Features and Benefits:

1. Active Management and Security Selection:

• The fund is actively managed by an experienced team of investment professionals.
• The team conducts thorough fundamental research to identify high-quality emerging market companies with strong dividend growth potential.

2. Focus on Quality:

• The fund invests in companies with strong fundamentals, including:
  • Stable and growing revenue streams
  • Low leverage and strong balance sheets
  • Consistent and increasing dividend payments

3. Dividend Growth Potential:

• The fund targets companies with a history of consistent dividend growth.
• This provides investors with the potential for attractive dividend income and capital appreciation.

4. Emerging Market Exposure:

• The fund provides access to the growing emerging market economies, offering investors:
  • Diversification benefits
  • Potential for higher returns over the long term

5. Liquidity and Transparency:

• The fund is traded on the New York Stock Exchange (NYSE), providing investors with easy access and liquidity.
• Shareholders receive regular updates on fund performance and holdings.

Investment Strategy:

• The fund invests in a diversified portfolio of emerging market stocks that meet the following criteria:
  • Market capitalization greater than $1 billion
  • Dividend yield greater than 2%
  • Dividend growth rate of at least 5% over the past three years
• The fund typically holds 30-50 stocks.

Performance:

• Since its inception in 2012, the fund has outperformed both its benchmark (MSCI Emerging Markets Index) and the broader emerging market equity category.
• It has consistently delivered competitive returns, with a focus on risk management and capital preservation.

Conclusion:

WisdomTree Emerging Markets Quality Dividend Growth Fund offers a compelling value proposition for investors seeking high-quality emerging market exposure with a focus on dividend growth. The fund's active management, focus on quality, and proven track record make it a suitable investment for those looking to diversify their portfolio and capture the growth potential of emerging markets.

WisdomTree Emerging Markets Quality Dividend Growth Fund (WTEM)

Investment Objective:

To provide long-term capital growth by investing primarily in emerging markets companies that exhibit quality characteristics and pay dividends.

Risk Summary:

Principal Risk Factors:

• Emerging Markets Risk: Investments in emerging markets can be more volatile than investments in developed markets due to political, economic, and social factors.
• Foreign Currency Risk: The fund's investments are denominated in foreign currencies, which can fluctuate in value relative to the US dollar and impact the fund's returns.
• Concentration Risk: The fund invests heavily in a limited number of companies, increasing its risk relative to more diversified funds.
• Currency Hedging Risk: The fund uses currency hedging strategies, which can introduce additional risks.
• Issuer Risk: Investments in a particular company or industry can suffer from risks specific to that company or industry.
• Interest Rate Risk: Changes in interest rates can affect the value of the fund's investments.
• Management Risk: The fund's performance is dependent on the investment decisions made by its portfolio managers.
• Economic and Market Conditions: Overall economic and market conditions can impact the fund's performance.

Additional Risk Considerations:

• Dividend Income Risk: Dividend payments may be reduced or eliminated, affecting the fund's dividend yield.
• Sustainability Risk: The fund's investments may be impacted by environmental, social, and governance (ESG) factors.
• Transferability and Liquidity Risk: Emerging markets investments may have lower liquidity than developed markets investments, making it more difficult to sell or transfer them.
• Tax Risk: Non-US investments may be subject to withholding taxes or other taxes, which can reduce the fund's returns.

Suitability:

This fund is suitable for investors:

• With a long-term investment horizon
• Tolerant of volatility
• Seeking exposure to emerging markets and quality growth companies
• Aware of the risks associated with foreign investments and dividend yield fluctuations