XC Profile
The WisdomTree Emerging Markets ex-China Fund is designed to offer investors exposure to a broad array of emerging market economies while specifically excluding companies based in China. In pursuit of its investment objective, the fund will invest at least 80% of its total assets, excluding collateral from securities lending, in securities that are components of its underlying index. This index includes equities that align closely with the economic characteristics of its component securities, providing targeted exposure to emerging markets without Chinese companies.
The fund's underlying index is a modified float-adjusted market capitalization-weighted benchmark. It comprises common stocks issued by companies in various emerging markets around the globe, with the explicit exclusion of firms incorporated or domiciled in China. By excluding Chinese companies, the fund aims to capture the performance of other emerging economies, reflecting a diverse range of sectors and industries across multiple regions. This approach allows investors to diversify their exposure to emerging markets while mitigating specific risks associated with Chinese equities.
The exclusion of China from the index provides a strategic focus on other high-growth emerging markets, potentially offering investors a unique perspective on global economic trends. These markets may include countries in Asia, Latin America, Eastern Europe, and Africa, each contributing to the index based on their market capitalization and float-adjusted weights. The fund's strategy is particularly relevant for investors seeking to gain exposure to emerging economies while avoiding the volatility and market-specific risks associated with China.
As a non-diversified fund, the WisdomTree Emerging Markets ex-China Fund concentrates its investments in a specific subset of emerging markets, focusing on those outside of China. This targeted approach aims to deliver performance aligned with the underlying index, emphasizing companies from other emerging economies. Investors should consider the implications of this strategy, including potential sector and regional concentration risks, as well as the fund's approach to managing and balancing exposure within the broader emerging markets landscape.
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