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WisdomTree's Unconventional Emerging Markets High Dividend Yielding ETF Play

Published Fri, 04 Dec 2020 01:22:02 -0500 on Seeking Alpha

Seeking AlphaETF AnalysisWisdomTree's Unconventional Emerging Markets High Dividend Yielding ETF PlayDec. 4, 2020 1:22 AM ET|| About: WisdomTree Emerging Markets High Dividend ETF (DEM)by: Jacob KilbyJacob Kilby Long/Short Equity, Special Situations, portfolio strategy, Oil & GasSummaryWisdomTree Emerging Markets High Dividend ETF provides income investors the chance to gain exposure to emerging markets all cap equity of high dividend yielding companies.
A compelling proposal for income investors looking to transition from active management emerging market strategies to more passive ones.
An appealing mix of price returns generated from emerging markets assets, enhanced with the reliability of distributions for income investors.
Weighting the index by dividends underscores one of the standout traits of the package.
Brief Thesis
As global demographics start to lean towards more elderly populations, an increasing number of people are looking to shore up retirement obligations and finance life in their twilight years. While sovereign banks have attempted to maintain economies on life support through hyper excessive use of monetary policy, interest rates have been crushed, forcing income investors, many of whom are retirees, to find alternative revenue streams.
With this trend has come the advent of more versatile ETF offerings – some resolutely focused on dividend distributions and other hybrids looking to emulate the safety of bonds with the returns of equity. To that point, I recently redacted an article on Aptus Defined Risk ETF (DRSK) – not exactly a pure dividend play, but another which could fit in the family of income generating plays. It is worth checking out also.
While I remain mildly bullish on dividend-focused ETFs, it goes without saying that fine print needs to be scrutinized on each occasion. WisdomTree Emerging Markets High Dividend ETF (DEM) affords investors an interesting play on the high yielding distributions thematic,... Read more