WisdomTree EmMkts ex-Stt-Ownd EntrprsETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy's effective investment philosophy supports an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an underweight position in yield exposure and an overweight in volatility exposure compared with category peers. Low yield exposure is attributed to holding fewer stocks with high dividend or buyback yields -- instead, typically holding companies with a stronger focus on growth opposed to returning capital. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm a Below Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

MercadoLibre

JPMorgan BetaBuilders Canada ETF

Fisker

Gold Fields Ltd.

Adams Natural Resources Fund Inc

IQ Real Return ETF

DNP Select Income Fund Inc

SM Energy

Asbury Automotive Group

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. WisdomTree EmMkts ex-Stt-Ownd Entrprs Fd earns an Above Average Process Pillar rating. The predominant contributor to the rating is its parent firm's impressive long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.4 stars. This fund tracks an index, which also increases its process rating. Historical data, like Morningstar's Active/Passive Barometer, shows that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Lastly, the process is limited by the turnover of talent across its parent firm. The firm's asset-weighted manager tenure of three years suggests it could do more to retain portfolio managers.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Emerging Markets ex-State-Owned Enterprises Index (the "index").  Under normal circumstances, at least 80% of the fund's total assets will be invested in component securities of the index and investments that have economic characteristics that are substantially identical to the economic characteristics of such component securities. The index is a modified float-adjusted market cap weighted index that consists of common stocks in emerging markets, and excluding common stocks of "state-owned enterprises." The fund is non-diversified. 

 The portfolio is overweight in consumer cyclical by 3.2 percentage points in terms of assets compared with the category average, and its healthcare allocation is similar to the category. The sectors with low exposure compared to category peers are financial services and energy; however, the allocations are similar to the category. The portfolio is composed of 631 holdings and is about as top-heavy as the category average, with 26.6% of assets in the top 10 holdings. And finally, in terms of portfolio turnover, on a year-over-year basis, 28% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Above Average

Process

WisdomTree’s team is good but unexceptional, earning the strategy an Average People Pillar rating. There’s a sizable bench of five managers listed on the fund. Together, they manage a total of 113 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Average

People

WisdomTree is improving, but its shaky global fund lineup and uncertain trajectory hold its rating to Below Average. 

WisdomTree’s research organization has long been a strength. Under CIO Jeremy Schwartz, the team has generated creative, economically sound ideas and evolved them into investable products, like the efficient core series. A recent focus on investor education spawned the Portfolio Analysis Tools Hub, an online platform that taps the team’s brainpower to help investors make better investment decisions.

The firm’s product lineup is a mixed bag. To complement its core lineup of fundamentally weighted strategies, WisdomTree has recently launched funds targeting established factors instead of trendy themes—an encouraging reorientation. Yet the shutdown of WisdomTree U.S. Growth and Momentum ETF calls WisdomTree’s commitment to these funds into question, and vestiges from its laxer product-development era look ripe for closure. Its European lineup features risky trading tools that are hard for investors to use well. 

WisdomTree’s future may hinge on WisdomTree Prime, its blockchain-based digital wallet. The launch reflects founder and CEO Jonathan Steinberg’s conviction in the disruptive potential of the blockchain. Prime shouldn’t hurt WisdomTree fund investors (most funds on the platform are zero-fee), but it may distract the firm from shoring up its core offering.

Below Average

Parent

WisdomTree Emerging Markets ex-State-Owned Enterprises Fund

XSOE tracks a market-cap-weighted index of emerging market companies, excluding state-owned enterprises.

When it comes to rebounding emerging markets equities, several market forces are currently at play. First, avoiding state-backed companies can help keep investors safe in this arena.

One Model Portfolio. Two Strong Tailwinds

Whilst approaching a tricky landscape such as emerging markets, it is preferable to reduce exposure to state-owned enterprises. XSOE has strong exposure to the Chinese markets which is leading the global economic revival but its top holdings could see volatility on account of regulatory risk.

WisdomTree Emerging Markets ex-State-Owned Enterprises Fund: For Another Day

Emerging markets equities perked up in late 2020. Advisors looking to capitalize on an extension of that trend have options to consider in 2021.

Emerging Markets Are Tricky. WisdomTree Model Portfolios Help

Freedom 100 Emerging Markets ETF

KraneShares Emerging Markets Healthcare Index ETF

One of the asset classes generating plenty of buzz as a 2021 idea is emerging markets. Up 4.5% over the past month, the MSCI Emerging Markets Index is already pricing in that enthusiasm.

3 Emerging Markets ETFs For 2021

Against the backdrop of political change in the U.S., many market observers are encouraged by emerging market equities prospects. One way of tapping into that theme is with WisdomTree's Emerging Markets Multi-Factor Model Portfolio.

A Model Portfolio with the Exclusionary Tactic EM Investors Crave

WisdomTree US Quality Dividend Growth Fund

WisdomTree U.S. LargeCap Dividend Fund

WisdomTree International Hedged Quality Dividend Growth Fund

WisdomTree U.S. Quality Dividend Growth Fund performed roughly in line with the S&P 500 since 2013 inception, despite zero exposure to FB, AMZN, NFLX or GOOG the whole time. WisdomTree U.S. LargeCap Dividend Fund outperformed value peers and the S&P 500 Value Index in 2020, consistent with prior years.

An Update On DGRW, DLN, IHDG And XSOE

ALPS Clean Energy ETF

iShares MSCI Emerging Markets ETF

iShares MSCI USA ESG Optimized ETF

SPDR SSGA Gender Diversity Index ETF

SPDR S&P 500 ETF Trust

Invesco Solar ETF

Impact Shares YWCA Women's Empowerment

The environmental, social and governance space is growing and expected to get bigger with a Biden administration.

ESG ETFs Of All Shapes & Sizes

Broadly speaking, emerging markets equities are disappointing investors yet again this year, but with the proper strategies, advisors can offer investors the potential for better outcomes in developing economies. WisdomTree's Emerging Markets Multi-Factor Model Portfolio is one such idea.

A Model Portfolio that Hedges Against Emerging Markets Risk

WisdomTree China ex-State-Owned Enterprises Fund

WisdomTree India ex-State-Owned Enterprises Fund

When we look at the emerging world, there are hundreds of listed SOEs that make their way into indexes such as MSCI Emerging Markets.

Emerging Markets: Just Exclude The Past

Broadly speaking, emerging markets equities are flailing again this year as the MSCI Emerging Markets Index is lower by two-thirds of a percent. However, there remain pockets of opportunities in developing economies.

Model Portfolio Presents Credible Emerging Markets Opportunity

Emerging Markets Internet & Ecommerce ETF

Macro Regime Shift Will Drive Higher Returns For EEM Investors

Standard emerging markets strategies are lagging again this year, but there remain compelling opportunities in developing economies that are accessible with the right approaches. A prime avenue for advisors looking to avoid emerging markets disappointment is with the WisdomTree Emerging Markets Multi-Factor Model Portfolio, which is part of WisdomTree’s Modern Alpha lineup of model portfolios.

Tailored Approach to Emerging Markets Warranted in Current Climate

XSOE Is A Standard Emerging Market ETF, Expect Better

Emerging markets (EM) was already a slippery slope to climb, but with Covid-19, that slope gets even more slippery. However, recent data has shown that EM outperformance could be tied to avoiding state-owned enterprises (SOEs).

Is Emerging Markets Outperformance Correlated to SOEs?

With the MSCI Emerging Markets Index (MXEF) higher by almost 5% over the past month, advisors may be rethinking allocations to developing economies. An array of portfolios within WisdomTree’s series of Modern Alpha ETF Model Portfolios feature emerging market exposure via a variety of ETFs.

The Right Way to Revisit Emerging Markets

Between the combination of attractive valuations outside the U.S. and this being an election year in the U.S, advisors may want to add a dash of international equity exposure to client portfolios.

Political Considerations Spotlight a Model Portfolio

Vanguard FTSE Emerging Markets ETF

Columbia Emerging Markets Consumer ETF

iShares JP Morgan USD Emerging Markets Bond ETF

iShares MSCI EM ESG Optimized ETF

SPDR S&P Emerging Markets Small Cap ETF

Schwab Fundamental Emerging Markets Large Co. Index ETF

KraneShares CSI China Internet ETF

SPDR Portfolio Emerging Markets ETF

Emerging markets ETFs can inject growth into your portfolio, as well as provide some much-needed diversification. Here are 10 top EM funds.

10 Best Emerging Markets ETFs for a Global Rebound

The New And Potentially Better Way To Invest In Emerging Markets

ARK Innovation ETF

iShares Russell 1000 Growth ETF

NuShares ESG Mid-Cap Growth ETF

Invesco QQQ

Vanguard Small-Cap ETF

Consumer Discretionary Select Sector SPDR Fund

NHL Hall of Famer Wayne Gretzky used to say, "I skate to where the puck is going to be, not to where it has been.

7 Best Growth ETFs to Reap the Recovery's Rewards

In investing there are times when breaking with tradition, such as the MSCI Emerging Markets Index (MXEF), can prove beneficial.

Why Exclusionary Tactics Can Work in Emerging Markets

A Simple Yet Effective Approach To Emerging Markets

Traditional emerging markets ETFs often feature substantial allocations to companies that are majority-owned by governments and that’s not always a positive trait for investors.

Avoiding Lumbering State-Run Companies in Emerging Markets

With some investments, what the strategy excludes is as important as what it includes.

News for WisdomTree Emerging Markets ex-State-Owned Enterprises Fund ETF (XSOE)