WisdomTree Emerging Markets ex-State-Owned Enterprises Fund seeks to track the investment results of emerging market companies that are not state-owned enterprises, which is defined as government ownership of more than 20%.
Companies influenced by government decisions often don’t put profits first. With China, India and other emerging market nations playing a more active role in corporate affairs, the risk could be that there will be a misalignment in interests with shareholders over time.
This fund can complement emerging market exposure while neutralizing companies potentially influenced by government decisions.