WisdomTree has launched two ETFs in the past week, today launching the Emerging Asia Equity Income fund.
The new Asia-focused fund invests in the top 30 per cent of companies in emerging Asia, then dividing it to ensure diversification by having a 4.5 per cent single stock weighting and a 33.3 per cent sector and country cap.
The fund will charge a 0.54 per cent total expense ratio and will target a dividend yield of 6.1 per cent.
“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,” says Viktor Nossek, director of research at WisdomTree Europe.
WisdomTree has also launched the UK Equity Income UCITS ETF, which uses a similar approach and targets the top 33 per cent of UK-domiciled companies. Individual stock positions are capped at 3 per cent and sectors at 25 per cent.
The new UK ETF has a total expense ratio of 0.29 per cent and targets a yield of 5.9 per cent.
”Based on client demand for WisdomTree’s Equity Income methodology, this is the first ETF which WisdomTree Europe is launching dedicated to the UK market,” says Hector McNeil, co-chief executive of WisdomTree Europe.