The WisdomTree International Equity ETF offers diverse exposure but investors should weigh its performance and costs before deciding
New York: The WisdomTree International Equity ETF, or DWM, launched on June 16, 2006. It aims to give investors broad access to developed markets outside the U.S. and Canada.
So, what’s the deal with smart beta ETFs? They’re different from the usual market cap weighted funds. Instead of just following the market, they focus on picking stocks that might perform better based on certain criteria.
These funds can be a great choice for those who want to go beyond the typical market returns. They use various strategies, like equal weighting or focusing on volatility, to try and beat the market.
DWM is managed by WisdomTree and has over $501 million in assets. It aims to match the performance of the WisdomTree International Equity Index, which looks at dividend-paying companies in developed countries.
When it comes to costs, DWM has an annual expense ratio of 0.48%, which is pretty standard for its category. Plus, it offers a decent dividend yield of 3.83% over the past year.
Before jumping in, it’s smart to check out what’s in the ETF. DWM holds stocks like HSBC, Novartis, and Toyota, with its top ten holdings making up about 12% of its total assets.
In terms of performance, DWM has seen a slight gain of 0.64% this year and is up about 5.30% over the past year. It’s been trading between $50.94 and $58.10 in the last 52 weeks, showing some stability.
With a beta of 0.80, DWM is considered a low-risk option, diversifying its holdings across 1,341 stocks to minimize risk.
If you’re looking for alternatives, there are other ETFs like the iShares MSCI EAFE ETF and the iShares Core MSCI EAFE ETF, which have lower expense ratios and larger asset bases.
In the end, DWM could be a solid choice for those wanting to invest in international markets, but it’s always good to compare with other options to find what fits your investment goals best.
