THE WisdomTree BLOG
Investors looking to gain exposure to emerging markets often feel compelled to use an active manager. This is based on the belief that these markets are less efficient and there is greater potential for value added over time. At WisdomTree we have been managing equity assets that track our emerging market indices for over ten years. Our family of dividend-based indices can demonstrate a live track record of how structured, disciplined and rules-based strategies tied to smart index construction have added value over traditional market cap-weighted indices.
Emerging market (EM) equities sold off sharply following the election of Donald Trump last November, perhaps owing to the protectionist rhetoric and tough trade talk from the president-elect. With that, the MSCI Emerging Markets Index fell 4.2% in the final quarter of 2016, breaking a streak of four consecutive positive quarters.
After getting past a variety of elections—most notably the French presidential election—without anti-market sentiment spreading throughout Europe, we have seen a relatively large shift in equity market performance. Fundamentals within Europe were allowed to drive performance as opposed to equity markets needing to be wary of Brexit or Trump-like election surprises.
WisdomTree’s European equity ETF strategies1 rebalanced in June. Emerging from the rebalance are stronger fundamentals against discounted valuations, which preserve the attractive yield and growth proposition of broad and small-cap dividends payers in Europe. Together, these diverse styles and strategies may allow investors to fine-tune their European exposure just as France’s pro-growth, pro-EU reform agenda reawakens investor appetite for the region.
Nitesh is a Commodities Strategist at ETF Securities. Nitesh has 13 years of experience as an economist and strategist, covering a wide range of markets and asset classes. Prior to joining ETF Securities, Nitesh was an economist covering the European structured finance markets at Moody’s Investors Service and was a member of Moody’s global macroeconomics team. Before that he was an economist at the Pension Protection Fund and an equity strategist at Decision Economics. He started his career at HSBC Investment Bank. Nitesh holds a Bachelor of Science in Economics from the London School of Economics and a Master of Arts in International Economics and Finance from Brandeis University (USA).
Head of Research
Associate Director of Research
Prior to ETF Securities, Aneeka worked as an Equity Sales Trader at Sunrise Brokers across US and Pan European Exchanges. Before that she worked as an Equity Derivatives Sales Manager at Mashreq Bank in Dubai.
Aneeka holds a Bsc in Mathematics from the University of Delhi and a Masters in Mathematics from Oxford University and is also a CFA Charterholder.
Nick Leung is a Research Analyst for WisdomTree in Europe. He is responsible for macroeconomic commentary and analysis, formulating investment strategies and trade ideas, as well as the maintenance of research collateral. Prior to joining in 2015, Nick was at Source, having completed his Master’s Degree at Imperial College London. During this time he was also involved in an ice-cream entrepreneurship project with Unilever. Nick holds a BA in Economics from the University of Nottingham.
Director of Capital Markets
WisdomTree's Head of Japan
Capital Markets and Investment Solutions, Index and Quantitative Investment, ICBC Credit Suisse Asset Management (International) Company Limited
Ms. Pang holds a M.Sc. in Development Finance from The University of Manchester, a M.A. in Journalism and a B.A. in Business Administration from The Chinese University of Hong Kong.