ETFs in an Emerging Market: 5 Best ETFs To Buy

3. WisdomTree Emerging Markets High Dividend Fund (NYSE:DEM)

5-Year Share Price Returns as of March 12, 2024: 29.88%

WisdomTree Emerging Markets High Dividend Fund (NYSE:DEM) ranks 3rd on our list of the best emerging market ETFs. WisdomTree Emerging Markets High Dividend Fund (NYSE:DEM) aims to mirror the performance of high dividend yielding companies in emerging markets. As of March 12, 2024, the fund holds net assets worth $2.8 billion, with an expense ratio of 0.63%. It offers a distribution yield of 2.99% and a 30-day SEC yield of 6.03%. WisdomTree Emerging Markets High Dividend Fund (NYSE:DEM) was established on July 13, 2007. 

Vale S.A. (NYSE:VALE) is one of the top holdings of WisdomTree Emerging Markets High Dividend Fund (NYSE:DEM). Vale S.A. (NYSE:VALE) is primarily engaged in the production and sale of iron ore and iron ore pellets for steelmaking purposes globally. On March 11, Vale S.A. (NYSE:VALE) declared a $0.5519 per share semi-annual dividend. The dividend is payable on March 26, to shareholders on record as of March 13. 

According to Insider Monkey’s fourth quarter database, 34 hedge funds were bullish on Vale S.A. (NYSE:VALE), same as the prior quarter. 

Miller Value Partners Income Strategy made the following comment about Vale S.A. (NYSE:VALE) in its second quarter 2023 investor letter:

“Vale S.A. (NYSE:VALE) fell during the quarter with iron ore prices. The company reported 1Q23 revenue of $8.44B, -22.7% Y/Y, below consensus of $8.79B, and Adjusted EBITDA of $3.69B, compared to 1Q22 EBITDA of $6.55B, below consensus of $4.49B. The Brazilian miner produced 66.8 million tons (Mt) of iron ore in 1Q23, +5.8% Y/Y, below consensus of 67.7 Mt, 67.0 thousand tons (kt) of copper, +18.4% Y/Y, and 41.0 kt of nickel, -10.5% Y/Y. Although management reaffirmed its FY23 production guidance, analysts seemed to be concerned by the negatively offsetting impacts of weaker iron ore prices as China, the world’s largest iron ore buyer, has threatened to curb any “unreasonable” price gains for the metal in an effort to prevent this year’s steel output from exceeding 2022 levels. Vale generated 1Q23 free cash flow (FCF) of $2.28B, bringing trailing-twelve month (TTM) FCF to $6.73B, or a FCF yield of 11.3%. The company repurchased $763MM worth of shares in the quarter and paid $1.80B in dividends, bringing total capital returned to shareholders in the quarter to $2.56B, or 4.3% of the company’s market cap.”