How This Emerging Markets ETF Generates A 5.3% Dividend Yield 3

5.31% dividend yield, 10% return YTD

The WisdomTree Emerging Markets High Dividend ETF (DEM) boasts of a 5.31% dividend yield. The fund tracks the performance of the WisdomTree Emerging Markets Equity income Index and offers exposure to some of the highest dividend yielding stocks in the emerging market world with a fundamental weighting system.

The fund, managing about $1.7 billion in assets, has an expense ratio of 0.63%. Top institutional owners of the fund include Morgan Stanley Smith Barney LLC (MS), Columbia Management Company, and Merrill Lynch & Co Inc (BAC), which own 6.71%, 6.16%, and 3.99% of the total shares of DEM, respectively.

Year-to-date (April 27, 2017), the WisdomTree Emerging Markets High Dividend ETF (DEM) has returned 9.78% to its investors; up 13.77% over the past year.

DEM Portfolio highlights

  • 89% of the funds’ assets are invested in the Emerging markets (EEM) (VWO).
  • Asia (AAXJ) (56%), Europe (VGK) (26%), and Africa (GAF) (7%) form the top 3 markets that the fund in invested in. Taiwan (EWT), China (FXI), and Russia (RSX) are top markets.
  • Financials (22%), Telecommunications (15%), and Energy (15%) dominate the DEM portfolio.
  • Invested in a good mix of large cap (79%), mid cap (18%), and small-cap (3%).
  • Top 5 equity holdings of the fund include:
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ADR TickerNameCountryWeight (%)SectorYTD Return (April 27)
OGZPYGazprom OAORussia4.29Oil & Gas-6.68%
HNHPFHon Hai Precision Industry Co., Ltd.Taiwan3.40Information Technology30.69%
LUKOYLukoil PJSC ADRRussia3.29Oil & Gas-9.39%
CICHYChina Construction Bank CorpChina2.97Financials6.86%
MTNOYMTN Group LtdSouth Africa2.29Telecommunication2.10%
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