Rethinking How To Access Emerging Markets

WisdomTree5.82K FollowersFollow5ShareSavePlay(11min)CommentsSummaryEmerging markets have surged recently, returning 14.83% year-to-date and nearly 50% over the past year—far outpacing developed markets and strengthening the case for broad exposure through strategies like the WisdomTree Emerging Markets ex-State-Owned Enterprises Fund .While emerging markets offer strong growth potential, state-owned enterprises can introduce governance and principal-agent risks, making rules-based strategies such as XSOE, which excludes companies with 20% or greater government ownership, an appealing way to focus on firms with clearer profit incentives.Investors seeking to capture the small-minus-big factor in emerging markets may complement core exposure like XSOE with the WisdomTree Emerging Markets SmallCap Dividend Fund.A balanced 70/30 core-and-tilt allocation aims to blend governance-aware exposure with small-cap return potential. tum3123/iStock via Getty Images By Hyun Kang Emerging markets have been on a tear recently. The S&P 500 is roughly flat year-to-date, while the MSCI EAFE Index has returned 10.09%. The MSCI Emerging Markets Index has returned 14.83%, significantly outpacing its developed marketThis article was written byWisdomTree5.82K FollowersFollowIn 2006, WisdomTree launched with a big idea and an impressive mission — to create a better way to invest. We believed investors shouldn’t have to choose between cost efficiency and performance potential, so we developed the first family of ETFs designed to deliver both. Today, WisdomTree offers a leading product range that offers access to an unparalleled selection of unique and smart exposures.