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Yahoo
3 days ago
- Business
- Yahoo
Is WisdomTree Emerging Markets SmallCap Dividend ETF (DGS) a Strong ETF Right Now?
Designed to provide broad exposure to the Broad Emerging Market ETFs category of the market, the WisdomTree Emerging Markets SmallCap Dividend ETF (DGS) is a smart beta exchange traded fund launched on 10/30/2007. The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment. 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. There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies. Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics. This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results. Because the fund has amassed over $1.63 billion, this makes it one of the larger ETFs in the Broad Emerging Market ETFs. DGS is managed by Wisdomtree. Before fees and expenses, this particular fund seeks to match the performance of the WisdomTree Emerging Markets SmallCap Dividend Index. The WisdomTree Emerging Markets SmallCap Dividend Index is a fundamentally weighted index that measures the performance of primarily small cap stocks selected from the WisdomTree Emerging Markets Dividend Index. Companies included in the Index fall within the bottom 10% of total market capitalization of the WisdomTree Emerging Markets Dividend Index. Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same. Operating expenses on an annual basis are 0.58% for DGS, making it on par with most peer products in the space. The fund has a 12-month trailing dividend yield of 3.08%. Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings. Taking into account individual holdings, Old Mutual Ltd (OMU) accounts for about 0.82% of the fund's total assets, followed by Tisco Financial Group Pcl - Nvdr (TISCO-R) and Grupo Aeroportuario Del Centro (OMAB). The top 10 holdings account for about 7.32% of total assets under management. The ETF has added roughly 10.97% and is up roughly 6.42% so far this year and in the past one year (as of 06/19/2025), respectively. DGS has traded between $43.34 and $54.95 during this last 52-week period. The ETF has a beta of 0.65 and standard deviation of 14.35% for the trailing three-year period, making it a medium risk choice in the space. With about 1112 holdings, it effectively diversifies company-specific risk . WisdomTree Emerging Markets SmallCap Dividend ETF is not a suitable option for investors seeking to outperform the Broad Emerging Market ETFs segment of the market. Instead, there are other ETFs in the space which investors should 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 $87.35 billion in assets, iShares Core MSCI Emerging Markets ETF has $89.57 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 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WisdomTree Emerging Markets SmallCap Dividend ETF (DGS): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Is Van Eck Emerging Markets A (GBFAX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Non US - Equity fund category, make sure to pass over Van Eck Emerging Markets A (GBFAX). GBFAX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance. Zacks categorizes GBFAX as Non US - Equity, a segment stacked high with options. Non US - Equity mutual funds like to invest in companies outside of the United States, an important characteristic since global mutual funds are known to keep a good portion of their portfolio stateside. These kinds of funds can often extend across all cap levels, and will typically allocate their investments between emerging and developed markets. Van Eck is based in New York, NY, and is the manager of GBFAX. Van Eck Emerging Markets A debuted in January of 1994. Since then, GBFAX has accumulated assets of about $42.36 million, according to the most recently available information. The fund is currently managed by Angus Shillington who has been in charge of the fund since December of 2009. Of course, investors look for strong performance in funds. GBFAX has a 5-year annualized total return of 1.46% and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 5.72%, which places it in the middle third during this time-frame. It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower. When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 14.52%, the standard deviation of GBFAX over the past three years is 17.53%. Over the past 5 years, the standard deviation of the fund is 17.25% compared to the category average of 14.25%. This makes the fund more volatile than its peers over the past half-decade. Investors should note that the fund has a 5-year beta of 0.71, which means it is hypothetically less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. GBFAX has generated a negative alpha over the past five years of -8.91, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns. Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, GBFAX is a load fund. It has an expense ratio of 1.57% compared to the category average of 0.98%. So, GBFAX is actually more expensive than its peers from a cost perspective. This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $100. Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included. Overall, Van Eck Emerging Markets A ( GBFAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now. This could just be the start of your research on GBFAXin the Non US - Equity category. Consider going to for additional information about this fund, and all the others that we rank as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (GBFAX): Fund Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Yahoo
4 days ago
- Business
- Yahoo
Analysis-Malaysia scores record flows as bond investors favour Asia
By Johann M Cherian, Gaurav Dogra and Rae Wee SINGAPORE/BENGALURU (Reuters) -Bond investors fleeing the United States are finding a haven in stable and lucrative Asian debt markets, with Malaysia leading the pack as the destination for foreign money. Foreign ownership of government bonds from Indonesia to India is soaring, becoming a tailwind for markets that have traditionally been dominated by domestic players. "We're in a very good environment for Asian investments," said David Chao, global market strategist for Asia Pacific at Invesco. "The ingredients are in place for Asia, for emerging markets to outperform." The biggest appeal is the combination of monetary easing and currency appreciation they are offering for the first time in four years, precipitated by U.S. President Donald Trump's policies and a weakening dollar. Malaysian bonds recorded their biggest monthly foreign inflows since 2014 last month, around $3.15 billion. India and Indonesia also got significant inflows. Across Asia, low inflation and policy rates at their peak contrast with the United States, Europe or Japan, where fiscal profligacy has undermined the value of long-term debt. Subdued growth and expected rate cuts further enhance the appeal of locking in peak rates, with the potential for capital appreciation on bonds as yields decline. A weaker dollar also gives investors scope to profit from currency appreciation. "Emerging market assets fundamentally will do well when U.S. rates are dropping, and U.S. dollar is weakening," said Shah Jahan Abu Thahir, head of global markets for Southeast Asia at Bank of America. "The last few years, it was the now, anecdotally, there's definitely some interest potentially coming back." BOND ALLURE Data from regional regulatory authorities and bond market associations showed foreign investors bought $34 billion worth of Asian debt securities so far this year - the largest amount in the first five months of a year since at least 2016. That's just the beginning of flows into these under-owned markets, analysts said, and likely to continue so long as economies and monetary settings in this part of the world remain insulated and more stable than developed markets. "We're seeing this fixed income interest across the board in the bigger and small EM countries - Thailand, Philippines, Indonesia and India," Sue Lee, head of markets for Asia South at Citi Group, said. India has been one of the more active markets for clients, due to the string of rate cuts, she said. Investors are positioning themselves ahead of expected rate cuts, locking in yields with the anticipation of bond prices rising as rates decline. Malaysia, where the market remains divided on rate-cut prospects, has an edge over Thailand, where investors reckon the cycle is almost over. Thailand had outflows of about $53.6 million in May, as investors shunned a market with one of the lowest returns in the region and hit hardest by Trump's trade tariffs. The central bank has hinted it has limited room to cut rates further, while the government has said it wants a weaker currency. One-year bond yields are below the 1.75% policy rate. Indonesian government bonds (IndoGBs) offer attractive yields, with a two-percentage point premium over U.S. Treasuries on 10-year IndoGBs. However, concerns over government spending and political uncertainty have tempered investor enthusiasm. Investors say Malaysian bonds offer more value, with its central bank yet to start cutting rates despite weaker growth, and a relatively robust ringgit. Abu Tahir said bonds in Indonesia are regarded as expensive while Thailand has rate cuts priced in and is already at fair value. "It's about what's the expectation and what's the market pricing," he said, predicting Malaysia will cut rates in July, though the market is more divided. "So that's like where the value is because if everybody is expecting a cut, it's already been priced in," he said. The lack of liquidity in Asian bond markets has long been a constraint for investors, with rapid foreign capital flows capable of triggering price volatility. Last month, a rush of capital into Hong Kong caused a spike in its usually stable currency. But analysts say there is less cause for concern, given a benign inflation environment and low foreign ownership. "For the past five years, it's been tumbleweed in terms of portfolio inflows into the region, so actually it wouldn't be bad to see more inflows back into the region," said Claudio Piron, a strategist at Bank of America. "In a way, if it's done in a calibrated, natural way, it may not be bad. A good problem to have." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
4 days ago
- Business
- Reuters
Malaysia scores record flows as bond investors favour Asia
SINGAPORE/BENGALURU, June 18 (Reuters) - Bond investors fleeing the United States are finding a haven in stable and lucrative Asian debt markets, with Malaysia leading the pack as the destination for foreign money. Foreign ownership of government bonds from Indonesia to India is soaring, becoming a tailwind for markets that have traditionally been dominated by domestic players. "We're in a very good environment for Asian investments," said David Chao, global market strategist for Asia Pacific at Invesco. "The ingredients are in place for Asia, for emerging markets to outperform." The biggest appeal is the combination of monetary easing and currency appreciation they are offering for the first time in four years, precipitated by U.S. President Donald Trump's policies and a weakening dollar. Malaysian bonds recorded their biggest monthly foreign inflows since 2014 last month, around $3.15 billion. India and Indonesia also got significant inflows. Across Asia, low inflation and policy rates at their peak contrast with the United States, Europe or Japan, where fiscal profligacy has undermined the value of long-term debt. Subdued growth and expected rate cuts further enhance the appeal of locking in peak rates, with the potential for capital appreciation on bonds as yields decline. A weaker dollar also gives investors scope to profit from currency appreciation. "Emerging market assets fundamentally will do well when U.S. rates are dropping, and U.S. dollar is weakening," said Shah Jahan Abu Thahir, head of global markets for Southeast Asia at Bank of America. "The last few years, it was the now, anecdotally, there's definitely some interest potentially coming back." Data from regional regulatory authorities and bond market associations showed foreign investors bought $34 billion worth of Asian debt securities so far this year - the largest amount in the first five months of a year since at least 2016. That's just the beginning of flows into these under-owned markets, analysts said, and likely to continue so long as economies and monetary settings in this part of the world remain insulated and more stable than developed markets. "We're seeing this fixed income interest across the board in the bigger and small EM countries - Thailand, Philippines, Indonesia and India," Sue Lee, head of markets for Asia South at Citi Group, said. India has been one of the more active markets for clients, due to the string of rate cuts, she said. Investors are positioning themselves ahead of expected rate cuts, locking in yields with the anticipation of bond prices rising as rates decline. Malaysia, where the market remains divided on rate-cut prospects, has an edge over Thailand, where investors reckon the cycle is almost over. Thailand had outflows of about $53.6 million in May, as investors shunned a market with one of the lowest returns in the region and hit hardest by Trump's trade tariffs. The central bank has hinted it has limited room to cut rates further, while the government has said it wants a weaker currency. One-year bond yields are below the 1.75% policy rate. Indonesian government bonds (IndoGBs) offer attractive yields, with a two-percentage point premium over U.S. Treasuries on 10-year IndoGBs . However, concerns over government spending and political uncertainty have tempered investor enthusiasm. Investors say Malaysian bonds offer more value, with its central bank yet to start cutting rates despite weaker growth, and a relatively robust ringgit . Abu Tahir said bonds in Indonesia are regarded as expensive while Thailand has rate cuts priced in and is already at fair value. "It's about what's the expectation and what's the market pricing," he said, predicting Malaysia will cut rates in July, though the market is more divided. "So that's like where the value is because if everybody is expecting a cut, it's already been priced in," he said. The lack of liquidity in Asian bond markets has long been a constraint for investors, with rapid foreign capital flows capable of triggering price volatility. Last month, a rush of capital into Hong Kong caused a spike in its usually stable currency. But analysts say there is less cause for concern, given a benign inflation environment and low foreign ownership. "For the past five years, it's been tumbleweed in terms of portfolio inflows into the region, so actually it wouldn't be bad to see more inflows back into the region," said Claudio Piron, a strategist at Bank of America. "In a way, if it's done in a calibrated, natural way, it may not be bad. A good problem to have."
Yahoo
6 days ago
- Business
- Yahoo
MarketAxess Becomes First Platform to Provide Fully Electronic Workflow for the Trading of Indian Government Bonds to International Investors
Addition of India further expands MarketAxess' leading Emerging Markets (EM) offering NEW YORK, June 16, 2025--(BUSINESS WIRE)--MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced the launch of the first fully electronic trading solution for Indian Government Bonds (IGBs) for Foreign Portfolio Investors (FPIs). International investors will, for the first time, be able to trade IGBs electronically alongside 29 other local currency bond markets already available via the MarketAxess trading platform. The new solution will provide both FPIs and market makers with an enhanced trading experience throughout the entire trade lifecycle. "We're delighted to be the first platform to be able to bring this new trading capability to international investors. By integrating directly with the NDS-OM system operated by the Clearing Corporation of India Limited, our solution is designed to increase efficiency across the entire trading workflow, from pre-trade allocation to post-trade reporting," said Riad Chowdhury, Head of Asia-Pacific at MarketAxess. "Global emerging markets are well-positioned for increased innovation and international investment—as evidenced by India's recent addition to notable global EM indices—and we are excited to support both with this launch." In 2024, MarketAxess reported annual trading volumes of nearly $860bn for its Emerging Markets business. MarketAxess has also been recognized as the 'Best Secondary Market Trading Platform for Emerging Market Bonds' by GlobalCapital for the past two years. For more information on the IGB trading solution and its availability, please visit: Cautionary Note Regarding Forward-Looking Statements This press release may contain forward-looking statements, including statements about the outlook and prospects for the Company, market conditions and industry growth, as well as statements about the Company's future financial and operating performance. These and other statements that relate to future results and events are based on MarketAxess' current expectations. The Company's actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including: global economic, political and market factors; the level of trading volume transacted on the MarketAxess platform; the rapidly evolving nature of the electronic financial services industry; the level and intensity of competition in the fixed-income electronic trading industry and the pricing pressures that may result; the variability of our growth rate; our ability to introduce new fee plans and our clients' response; our ability to attract clients or adapt our technology and marketing strategy to new markets; risks related to our growing international operations; our dependence on our broker-dealer clients; the loss of any of our significant institutional investor clients; our exposure to risks resulting from non-performance by counterparties to transactions executed between our clients in which we act as an intermediary in matched principal trades; risks related to self-clearing; risks related to sanctions levied against states or individuals that could expose us to operational or regulatory risks; the effect of rapid market or technological changes on us and the users of our technology; issues related to the development and use of artificial intelligence; our dependence on third-party suppliers for key products and services; our ability to successfully maintain the integrity of our trading platform and our response to system failures, capacity constraints and business interruptions; the occurrence of design defects, errors, failures or delays with our platforms, products or services; our vulnerability to malicious cyber-attacks and attempted cybersecurity breaches; our actual or perceived failure to comply with privacy and data protection laws; our ability to protect our intellectual property rights or technology and defend against intellectual property infringement or other claims; our use of open-source software; our ability to enter into strategic alliances and to acquire other businesses and successfully integrate them with our business; our dependence on our management team and our ability to attract and retain talent; limitations on our flexibility because we operate in a highly regulated industry; the increasing government regulation of us and our clients; risks related to the divergence of U.K. and European Union legal and regulatory requirements following the U.K.'s exit from the European Union; our exposure to costs and penalties related to our extensive regulation; our risks of litigation and securities laws liability; our tax filing positions; the effects of climate change or other sustainability risks that could affect our operations or reputation; our future capital needs and our ability to obtain capital when needed; limitations on our operating flexibility contained in our credit agreement; our exposure to financial institutions by holding cash in excess of federally insured limits; and other factors. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. More information about these and other factors affecting MarketAxess' business and prospects is contained in MarketAxess' periodic filings with the Securities and Exchange Commission and can be accessed at About MarketAxess MarketAxess (Nasdaq: MKTX) operates a leading electronic trading platform that delivers greater trading efficiency, a diversified pool of liquidity and significant cost savings to institutional investors and broker-dealers across the global fixed-income markets. Approximately 2,100 firms leverage MarketAxess' patented technology to efficiently trade fixed-income securities. Our automated and algorithmic trading solutions, combined with our integrated and actionable data offerings, help our clients make faster, better-informed decisions on when and how to trade on our platform. MarketAxess' award-winning Open Trading® marketplace is widely regarded as the preferred all-to-all trading solution in the global credit markets. Founded in 2000, MarketAxess connects a robust network of market participants through an advanced full trading lifecycle solution that includes automated trading solutions, intelligent data and index products and a range of post-trade services. Learn more at and on X @MarketAxess. View source version on Contacts INVESTOR RELATIONS Stephen Davidson MarketAxess Holdings Inc.+1 212 813 6313sdavidson2@ MEDIA RELATIONS Marisha Mistry MarketAxess Holdings Inc.+1 917 267 1232mmistry@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
