(XSOE) WisdomTree Emerging Markets - Ratings and Ratios

The WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) is an exchange-traded fund that focuses on investing in emerging markets, excluding companies controlled by the state. This strategic exclusion is designed to capitalize on the growth potential of privately-owned enterprises in emerging economies.

By investing at least 80% of its assets in the constituent securities of its tracking index, XSOE provides a targeted exposure to emerging markets, minus the influence of state-owned enterprises. The index it follows is weighted based on the market capitalization of its constituents, adjusted for the float, which means it reflects the actual market value of the freely available shares. This approach ensures that the funds performance mirrors the markets perception and valuation of these companies.

Its worth noting that XSOE is classified as a non-diversified fund, which implies that it may invest a larger proportion of its assets in a smaller number of securities. This characteristic can result in higher volatility compared to diversified funds, as the performance of the fund is more heavily reliant on the performance of its individual holdings.

From a technical standpoint, the current price of XSOE is $33.50, indicating a slight upward trend as it is above both its 20-day and 50-day Simple Moving Averages (SMA20: $33.18, SMA50: $31.69). The Average True Range (ATR) of 0.35, or 1.06%, suggests a moderate level of daily price volatility. Given the 52-week high and low prices ($34.06 and $27.26, respectively), the fund is currently trading near its 52-week high, indicating strong recent performance.

Fundamentally, XSOE has a substantial Assets Under Management (AUM) of $1.78 billion, underscoring its appeal to investors seeking exposure to emerging markets through a non-state-owned enterprises lens. The exclusion of state-owned enterprises could potentially lead to a more dynamic portfolio, as privately-owned companies may exhibit more agility and growth potential.

Forecasting the future performance of XSOE involves considering both its technical indicators and fundamental attributes. The upward trend indicated by its SMA20 and SMA50 suggests a positive short to medium-term outlook. However, the proximity to its 52-week high warrants caution, as it may be nearing a resistance level. If the emerging markets continue to attract investment and privately-owned enterprises within these markets continue to outperform state-owned ones, XSOE is well-positioned to benefit. Therefore, a potential forecast is that XSOE could see its price appreciate further, potentially testing new highs, provided the current trends in emerging markets and the relative performance of non-state-owned enterprises continue.