The company targets narrower swaths of the developing world.
WisdomTree, the ETF-only firm known for its “fundamental” funds, filed regulatory paperwork to market three separate emerging markets equities funds targeting consumer product companies, high-dividend-paying firms and stocks that have relatively low volatility, respectively.
The three funds, and their basic characteristics are:
- WisdomTree Emerging Markets Consumer Growth Fund, an optimized fund that won’t own all the securities in its index that will cherry-pick dividend-paying companies with growth characteristics
- WisdomTree Emerging Markets Low Volatility Equity Fund, an optimized fund that will own securities that historically have exhibited lower volatility and higher growth
- WisdomTree Emerging Markets Dividend Growth Fund, an optimized fund whose index will select stocks consumer growth stock in developing world equity markets.
Each of the three funds will select from a universe of 17 countries including Brazil, Chile, China, Czech Republic, Hungary, India, Indonesia, Korea, Malaysia, Mexico, the Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey, according to the three different prospectuses.
The filings together suggest that the New York-based company is branching into more specific niches of the emerging markets, not unlike Emerging Global Advisors, another New York-based ETF firm whose entire business plan is focused on various investment strategies centered on the developing world.
WisdomTree appears to be building on its $5.5 billion dividend-focused WisdomTree Emerging Markets Equity Income Fund (NYSEArca: DEM)—one of the firm’s most successful strategies.
The paperwork didn’t name any of the proposed tickers or any proposed annual expense ratios, but did say each would have its primary listing on the Nasdaq.