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Is WisdomTree Emerging Markets High Dividend ETF (DEM) a Strong ETF Right Now?

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Making its debut on 07/13/2007, smart beta exchange traded fund WisdomTree Emerging Markets High Dividend ETF (DEM - Free Report) provides investors broad exposure to the Broad Emerging Market ETFs category of the market.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.

By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.

Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.

Fund Sponsor & Index

DEM is managed by Wisdomtree, and this fund has amassed over $3.42 billion, which makes it one of the larger ETFs in the Broad Emerging Market ETFs. DEM seeks to match the performance of the WisdomTree Emerging Markets High Dividend Index before fees and expenses.

The WisdomTree Emerging Markets High Dividend Index is a fundamentally weighted index that measures the performance of the highest dividend yielding stocks selected from the WisdomTree Emerging Markets Dividend Index.

Cost & Other Expenses

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Operating expenses on an annual basis are 0.63% for DEM, making it on par with most peer products in the space.

DEM's 12-month trailing dividend yield is 4.70%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

When you look at individual holdings, China Construction Bank-haccounts for about 4.32% of the fund's total assets, followed by Industrial & Commercial Bank Of China-h and Mediatek Inc.

DEM's top 10 holdings account for about 21.24% of its total assets under management.

Performance and Risk

Year-to-date, the WisdomTree Emerging Markets High Dividend ETF has added roughly 3.96% so far, and it's up approximately 23.97% over the last 12 months (as of 01/22/2026). DEM has traded between $37.51 $48.56 in this past 52-week period.

The ETF has a beta of 0.55 and standard deviation of 13.65% for the trailing three-year period, making it a medium risk choice in the space. With about 546 holdings, it effectively diversifies company-specific risk .

Alternatives

WisdomTree Emerging Markets High Dividend ETF is a reasonable option for investors seeking to outperform the Broad Emerging Market ETFs segment of the market. However, there are other ETFs in the space which investors could consider.

Vanguard FTSE Emerging Markets ETF (VWO) tracks FTSE Emerging Markets All Cap China A Inclusion Index and the iShares Core MSCI Emerging Markets ETF (IEMG) tracks MSCI Emerging Markets Investable Market Index. Vanguard FTSE Emerging Markets ETF has $110.4 billion in assets, iShares Core MSCI Emerging Markets ETF has $132.67 billion. VWO has an expense ratio of 0.07% and IEMG changes 0.09%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Emerging Market ETFs

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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