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.
The Indian equity market, we believe, represents one of the most exciting opportunities in emerging markets with a dynamic, fast growing economy underpinned by structural reforms. Improving the business climate is a priority of government policy, with a focus on ease of doing business, bridging the skills gap through training, a domestic investment initiative and reducing bureaucracy. Recently the move to a new goods and services tax creating a national unified market for the first time is a further example of growth oriented policies. This commitment to positive change also has implications at a structural level for the economy and the sectors that are likely to benefit.
India is at an interesting crossroad where leadership is pro-actively making tough reforms for long-term growth.Two pillars of the Indian economy, consumption and demographics, have strong growth projections. View our infographic to learn the five reasons why we believe Indian equities could spice up your portfolio.
China A-shares, with respect to global equity benchmark indices, have been problematic for some investors in terms of market accessibility and index inclusion.
The evolution of the relatively restrictive Qualified Foreign Institutional Investor schemes—QFII and RQFII—combined with the relatively new Stock Connect schemes for both Shanghai and Shenzhen stocks has created a material change to investors’ ability to trade A-shares. These moves have created an environment of more flexible market access which has increased the likelihood that, on a revised and limited basis, MSCI may include A-shares in their benchmark indices. It is important to note that the current proposal is substantially different from the previous attempts and only creates a modest inclusion of A-shares as opposed to a comprehensive approach.
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.