WisdomTree Launches Europe’s First Emerging Asia Income ETF

The fund ranks stocks by dividend yield and costs 0.54 percent per year  

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Editor, etf.com Europe
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Reviewed by: Rachael Revesz
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Edited by: Rachael Revesz

WisdomTree Europe has launched an exchange traded fund (ETF) that tracks Asian equity income stocks for investors looking seeking yield in a world of low returns, the first such ETF in Europe.

The WisdomTree Emerging Asia Equity Income UCITS ETF (ticker DEMA) listed in London today and has a total expense ratio of 0.54 percent. It physically tracks an index of the highest 30 percent of companies in emerging Asia ranked by dividend yield, resulting in the ETF’s dividend yield of 6.1 percent.

There is a cap of 4.5 percent per stock, 33.3 percent per sector and the same cap per country.

Viktor Nossek, director of research at the provider, said DEMA has over 300 constituents and features a mid to small cap bias.

“The strategy has a large allocation to high dividend yielding countries like China and Taiwan whilst underweighting low dividend countries such as India and South Korea. At a sector level it is overweight financials and defensives such as telecoms, energy and utilities,” he said.

Investors looking at Asia as a region more broadly for income might consider the SPDR S&P Pan Asia Dividend Aristocrats UCITS ETF (ticker PADV/ASDV) for fees of 0.55 percent, or the db X-trackers MSCI AC Asia ex Japan High Dividend Yield UCITS ETF (XAHG/XAHD) for 0.65 percent.

WisdomTree now has 12 ETFs listed in Europe. Last week the pr ovider brought to market the WisdomTree UK Equity Income UCITS ETF (WUKD) with fees of 0.29 percent in a move to expand its income-focused fund range.

 

 

Rachael Revesz joined etf.com in August 2013 as staff writer. Previously an investment reporter at Citywire, she has a background in writing content for retail financial advisors and has covered a wide range of subjects in finance. Revesz studied journalism at PMA Media, which has since merged with the Press Association. She also holds a B.A. in modern languages from Durham University, as well as CF1 and CF2 financial planning certificates from the CII.