December 18, 2020
Congress recently passed the Holding Foreign Companies Accountable Act, legislation that looks to even the playing field between domestic companies and Chinese firms listing here. As President Trump is expected to sign the bill into law and many index providers are removing some Chinese companies from benchmarks.
For advisors, one way to prepare for this scenario is with WisdomTree’s Emerging Markets Multi-Factor Model Portfolio.
“This model portfolio is designed for investors with a long-term horizon looking for exposure to a broad universe of Emerging Market equities primarily using factor focused ETFs,” according to WisdomTree. “The selected ETFs provide certain factor tilts that have the potential to generate excess return relative to comparable cap-weighted benchmarks over longer-term holding periods. The strategies may use both WisdomTree and non-WisdomTree ETFs.”