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WisdomTree's (WETF) dividend-weighted approach has its emerging-market dividend ETF (DEM)...

WisdomTree's (WETF) dividend-weighted approach has its emerging-market dividend ETF (DEM) smoking its better-endowed competition (EEM, VWO). Up 7.7% annualized over 5 years (compared to about 2% for the other two), DEM's approach has it tilting to smaller value stocks with high yields. It's working for WisdomTree the stock as well, +46% YTD.
Comments (5)
  • inmocean
    , contributor
    Comments (59) | Send Message
     
    I appreciate this article pointing this out; I looked at DEM vs EEM vs VWO (which used to be almost identical to EEM but has changed a bit) and DEM has lower risk and higher return for 3 and 5 yr periods, about the same for the one year. I'm going to move out of VWO and into DEM.
    7 Feb 2013, 08:58 PM Reply Like
  • Hobbyist
    , contributor
    Comments (17) | Send Message
     
    Any Schwab client would be foolish to pass up the industry-leading low-fee ratios of Schwab funds like SWTSX and SWPPX and ETFs like SCHB, all commission-free. When I tried to cost-average a position in DEM, the transaction costs neutralized any advantage.
    7 Feb 2013, 10:33 PM Reply Like
  • User 235498
    , contributor
    Comment (1) | Send Message
     
    comparing those etf's using google finance shows just the opposite. wisdom tre's emerging market etf is virtually flat over 5 years, and in all time frames is sorely lagging the others.
    7 Feb 2013, 11:04 PM Reply Like
  • Vaun
    , contributor
    Comments (316) | Send Message
     
    Probably the difference the dividend makes...
    9 Feb 2013, 10:13 PM Reply Like
  • inmocean
    , contributor
    Comments (59) | Send Message
     
    I compared using TD Ameritrade. But after further consideration, I bought MXF, a closed end fund trading at a small discount to NAV; they pay a hefty dividend and have been growing nicely (24%/yr for last 10 years). Their dividend for the next year, and they pay it quarterly, is computed as 10% of the NAV as of the last trading day of the previous year, ie, 12/30/12, which was 30.81. The fund's price is about a 1% discount to NAV right now.
    10 Feb 2013, 03:01 AM Reply Like
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