Stockchase Opinions

Tyler MordyWisdom Tree Emerging Markets High DividendDEMBUYNov 03, 2020

Since the 2008 crash, EM has not done well. The US has led, instead. Today, it's the opposite: emerging markets offer low valuations, currencies and expectations. So, he's extremely bullish EM in the next 5-10 years. DEM pays a huge dividend over 5%. It takes the broad MSCI EM index and converts it to a higher-dividend index, meaning away from tech and consumer discr to financials and materials. This works for him, because he expects global growth post-Covid to be higher in 2021 by rotating to back-to-work sectors.
$35.75

Stock price when the opinion was issued

$53.74

As of Jun 05, 2026. Market Open.

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BUY
Bullish on EM, which has underperformed for the last 11 years and is set for a long period of outperformance. Overweights EM companies that have higher dividends and a higher quality tilt. Diversified, with a yield of about 4.5%, PE ratio of around 10.
COMMENT

The only caveat he would have on this is that whenever you take a market cap Index and tweak it dividend weight, you create inherent biases. With emerging markets, when you create that, you tend to overweight Russia and China, which are both high dividend yielding countries. If you are comfortable with those sectors, this is a great dividend one.