At a glance
XSOE charges 0.32% a year, above the 0.25% average of the 8 funds most like it (the 7th cheapest of 9). It has $2.19B in assets, the 9th largest of that group; it paid 1.78% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +12.5% with distributions reinvested (S&P 500: +11.5%), 5th of those 9 funds; over three years it returned +21.5% a year. At its worst it fell 34.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 34 months after the low. Its ten largest positions make up 37.3% of the fund, out of 852 in all.
The short version
WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) is an index ETF of emerging-market stocks that skips any company more than 20% owned by a government. That tilts it toward private-sector technology firms: Taiwan Semiconductor, Samsung Electronics and SK Hynix made up about 28% of assets as of June 30, 2026. Its 0.32% annual expense ratio is above the 0.25% average of similar funds and well above VWO (0.07%) and IEMG (0.09%).
Price history
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XSOE +12.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| XSOE official prospectus, to Dec 31, 2025 | — | +29.57% | — | +1.45% | +8.26% | — |
| Wisdom Tree Emerging Markets ex-State-Owned Enterprises Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +30.22% | — | +2.04% | +8.94% | — |
| Index118 index, same period | — | +33.57% | — | +4.20% | +8.42% | — |
| XSOE price data to Oct 27, 2026 | +13.6% | +12.5% | +21.5% | +4.5% | — | +8.5% |
- Over the year to Oct 27, 2026, XSOE returned +12.5%, 5th of 9 among similar funds.
- Its 5-year annualized return was +4.5%.
- Its worst full calendar year was 2022 (-25.8%); its best was 2025 (+30.1%).
- The deepest fall in its price history was 45.2% (Feb 16, 2021 to Oct 24, 2022), recovered by Jan 22, 2026.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +13.6% | — |
| 2025 | +30.1% | +29.57% |
| 2024 | +7.0% | +7.46% |
| 2023 | +10.3% | +9.82% |
| 2022 | -25.8% | -25.63% |
| 2021 | -5.9% | -5.51% |
| 2020 | — | +29.52% |
| 2019 | — | +24.16% |
| 2018 | — | -18.62% |
| 2017 | — | +46.50% |
| 2016 | — | +7.37% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 32.5% over that stretch · deepest drop along the way 34.6%, back to its old high 34.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.5500 | |
| 2025 | $0.5900 | +34.1% |
| 2024 | $0.4400 | -15.4% |
| 2023 | $0.5200 | -24.6% |
| 2022 | $0.6900 | +35.3% |
| 2021 | $0.5100 |
What's inside
As of Jun 30, 2026, the fund held 852 securities; the ten largest made up 37.3% of assets.
| Holding | Weight | |
|---|---|---|
| TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD | 13.28% | |
| SAMSUNG ELECTRONICS CO LTD | 7.98% | |
| SK HYNIX INC | 6.55% | |
| TENCENT HOLDINGS LTD | 2.59% | |
| ALIBABA GROUP HOLDING LTD | 1.75% | |
| MEDIATEK INC | 1.58% | |
| AL RAJHI BANK | 1.09% | |
| HDFC BANK LTD | 0.89% | |
| RELIANCE INDUSTRIES LTD | 0.83% | |
| DELTA ELECTRONICS INC | 0.78% | |
| MERCADOLIBRE INC | 0.76% | |
| SK SQUARE CO LTD | 0.75% | |
| HON HAI PRECISION INDUSTRY COMPANY LTD | 0.73% | |
| SAMSUNG ELECTRO MECHANICS | 0.70% | |
| ZHONGJI INNOLIGHT CO LTD | 0.66% |
By country
Taiwan 26.87%South Korea 22.58%India 14.39%Cayman Islands 10.08%China 8.75%By asset type
Stocks 100.06%Preferred stock 0.18%What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $9.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +15.09%, +10.02%, -0.60%.
How it works
XSOE tracks the WisdomTree Emerging Markets ex-State-Owned Enterprises Index. WisdomTree, Inc. designed the index, and its subsidiary WisdomTree Asset Management runs the fund. The approach is passive and uses "representative sampling." That means the fund may hold a sample of index stocks that behaves like the whole index instead of owning every one. At least 80% of net assets go to index stocks or close equivalents.
The index starts with companies based and listed in 19 emerging markets, including China, India, Taiwan, Korea, Brazil and Saudi Arabia. Each must have a float-adjusted market value of at least $1 billion, which counts only shares available to investors, and must meet trading-volume minimums. At each annual screening, any company with more than 20% government ownership is dropped. Stocks are then weighted by size, with adjustments. Each country's weight is pushed back toward its share of the starting universe, so private firms in countries with many state-owned companies can get larger weights. No country's weight can be multiplied by more than three. Each sector stays within 3% of its starting weight. Weights can drift between rebalances.
As of June 30, 2026, the fund held 852 stocks and the top ten made up 37.3%. It holds no derivatives, and portfolio turnover was 17%. The fund generally pays redemptions in cash, so it may have to sell holdings. That can create taxable capital gains that some ETFs avoid.
What it really costs
- XSOE charges 0.32% a year, versus an average of 0.25% for the similar funds below (7th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $33 in the first year and $406 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| XSOE | $33 | $103 | $180 | $406 |
In a retirement portfolio
Its focus on Asian technology stocks, a one-year beta of 1.5 as of October 27, 2026, and a past 45.2% drop make it better suited to a small slice of a portfolio than its core.
XSOE could add privately run companies in Asia and other emerging markets that a US-focused portfolio may lack, but the ride has been rough. In the 2022 bear market it fell 34.6% and took about 34 months to recover, finally doing so in August 2025. Its deepest drop was 45.2%, from February 2021 to October 2022. It did not regain that peak until January 2026, 39 months later. Its worst calendar year was 2022, at -25.6%, and it lost 21.3% in the first quarter of 2020. The fund launched in 2014, so it has no 2008 record. Anyone who had to sell shares or draw income during those stretches would have locked in losses. The yield was 1.78% as of October 27, 2026, paid quarterly. The SEC's standard example puts costs at $406 over 10 years on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want emerging-market stocks but prefer to leave out companies with more than 20% government ownership.
- People comfortable with a heavy Asian tech tilt: Taiwan and South Korea were about 49% of assets as of June 30, 2026.
- Long-term holders able to wait out deep drops like the 45.2% decline that took 39 months to recover, by January 2026.
Look elsewhere if
- Cost-focused investors: VWO and SPEM charge 0.07% and IEMG charges 0.09%, compared with XSOE's 0.32%.
- Investors seeking meaningful income, since the trailing yield was 1.78% as of October 27, 2026, paid quarterly.
- Anyone wary of single-stock risk: Taiwan Semiconductor alone was 13.3% of assets as of June 30, 2026, and Samsung about 8%.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| XSOE this fund | — | 0.32% | $2.19B | +12.5% | +21.5% |
| EEM iShares MSCI Emerging Markets ETF | 67% | 0.72% | $31.21B | +12.7% | +20.3% |
| EMXC iShares MSCI Emerging Markets ex China ETF | 65% | 0.25% | $24.92B | +27.3% | +24.6% |
| IEMG iShares Core MSCI Emerging Markets ETF | 62% | 0.09% | $160.90B | +11.7% | +19.8% |
| ESGE iShares ESG Aware MSCI EM ETF | 56% | 0.26% | $6.91B | +15.2% | +23.2% |
| SCHE Schwab Emerging Markets Equity ETF | 53% | 0.11% | $13.00B | +4.4% | +16.7% |
| SPEM SPDR Portfolio Emerging Markets ETF | 51% | 0.07% | $17.31B | +5.0% | +16.8% |
| VWO Vanguard FTSE Emerging Markets ETF | 49% | 0.07% | $162.04B | +3.3% | +16.8% |
Questions investors ask
What does ex-state-owned enterprises mean in XSOE?
It means the fund's index removes any emerging-market company that is more than 20% owned by a government, as WisdomTree defines it. The index starts with large, actively traded stocks from 19 emerging markets and drops the state-owned ones at each annual screening. It then adjusts country and sector weights so the portfolio doesn't stray too far from the starting universe. The result leans toward privately run companies, especially in technology.
What are XSOE's top holdings?
As of June 30, 2026, the largest holdings were Taiwan Semiconductor Manufacturing at 13.3% of assets, Samsung Electronics at 8.0%, SK Hynix at 6.5%, Tencent at 2.6%, Alibaba at 1.7% and MediaTek at 1.6%. The fund held 852 stocks, and the top ten made up 37.3%. By country, Taiwan was 26.9%, South Korea 22.6% and India 14.4%. That means a handful of Asian chipmakers drive much of its return.
XSOE vs EEM: what's the difference?
Both own emerging-market stocks, and about 67% of their holdings overlap. The difference is that XSOE screens out state-owned companies, while EEM tracks the MSCI Emerging Markets index. XSOE is cheaper, with an expense ratio of 0.32% against EEM's 0.72%. The one-year return was 14.2% for EEM as of October 29, 2026, and 12.5% for XSOE as of October 27. Cost-focused investors may also compare IEMG, which charges 0.09%.
Does XSOE pay dividends?
Yes, XSOE pays dividends quarterly. Over the 12 months through October 27, 2026, it paid about $0.78 per share, a yield of 1.78%. The index does not pick stocks for their dividends, so income is a by-product rather than a goal. Because the fund owns foreign stocks, payments can also rise or fall with company profits and currency exchange rates.
How has XSOE performed over 10 years?
According to the fund's prospectus, XSOE's average annual return through December 31, 2025 was 8.26% over 10 years, 1.45% over five years and 29.57% over one year. Its index returned 8.94%, 2.04% and 30.22% over the same periods. The gap reflects fees and tracking differences. The five-year figure includes losses of 5.51% in 2021 and 25.63% in 2022. Calendar-year results have ranged from a 46.5% gain in 2017 to an 18.62% loss in 2018.