(Harvest) As global trade disputes between the two largest economies continue to escalate, volatility has once again become a fact of global markets, as seen in the VIX spiking above 25 . Perhaps due to their sensitivity to trade (and concentration in China), emerging market (EM) equities have sold off considerably during this period, falling by 10.7% over the last month alone. Despite the turmoil, we believe this bout of volatility can create long-term opportunities. At WisdomTree, a key element of our Index methodology is our focus on yearly rebalancing based on fundamentals. To illustrate this process, we focus on small-cap dividend payers in EM.

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