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Is WisdomTree International Equity ETF (DWM) a Strong ETF Right Now?
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A smart beta exchange traded fund, the WisdomTree International Equity ETF (DWM - Free Report) debuted on 06/16/2006, and offers broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $590.94 million, this makes it one of the average sized ETFs in the Broad Developed World ETFs. DWM is managed by Wisdomtree. Before fees and expenses, this particular fund seeks to match the performance of the WisdomTree International Equity Index.
The WisdomTree International Equity Index is a fundamentally weighted Index that measures the performance of dividend-paying companies in the industrialized world, excluding Canada and the United States.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.48% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 5%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Bhp Group Ltd (BHP - Free Report) accounts for about 3.07% of the fund's total assets, followed by Nestle Sa (NESN) and Rio Tinto Plc (RIO - Free Report) .
The top 10 holdings account for about 15.12% of total assets under management.
Performance and Risk
The ETF has lost about -11.13% so far this year and is down about -10.71% in the last one year (as of 08/02/2022). In the past 52-week period, it has traded between $43.46 and $56.39.
The fund has a beta of 0.77 and standard deviation of 21.48% for the trailing three-year period, which makes DWM a low risk choice in this particular space. With about 870 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree International Equity ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares MSCI EAFE ETF (EFA - Free Report) tracks MSCI EAFE Index and the iShares Core MSCI EAFE ETF (IEFA - Free Report) tracks MSCI EAFE Investable Market Index. IShares MSCI EAFE ETF has $47.74 billion in assets, iShares Core MSCI EAFE ETF has $89.17 billion. EFA has an expense ratio of 0.32% and IEFA charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is WisdomTree International Equity ETF (DWM) a Strong ETF Right Now?
A smart beta exchange traded fund, the WisdomTree International Equity ETF (DWM - Free Report) debuted on 06/16/2006, and offers broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $590.94 million, this makes it one of the average sized ETFs in the Broad Developed World ETFs. DWM is managed by Wisdomtree. Before fees and expenses, this particular fund seeks to match the performance of the WisdomTree International Equity Index.
The WisdomTree International Equity Index is a fundamentally weighted Index that measures the performance of dividend-paying companies in the industrialized world, excluding Canada and the United States.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.48% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 5%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Bhp Group Ltd (BHP - Free Report) accounts for about 3.07% of the fund's total assets, followed by Nestle Sa (NESN) and Rio Tinto Plc (RIO - Free Report) .
The top 10 holdings account for about 15.12% of total assets under management.
Performance and Risk
The ETF has lost about -11.13% so far this year and is down about -10.71% in the last one year (as of 08/02/2022). In the past 52-week period, it has traded between $43.46 and $56.39.
The fund has a beta of 0.77 and standard deviation of 21.48% for the trailing three-year period, which makes DWM a low risk choice in this particular space. With about 870 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree International Equity ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares MSCI EAFE ETF (EFA - Free Report) tracks MSCI EAFE Index and the iShares Core MSCI EAFE ETF (IEFA - Free Report) tracks MSCI EAFE Investable Market Index. IShares MSCI EAFE ETF has $47.74 billion in assets, iShares Core MSCI EAFE ETF has $89.17 billion. EFA has an expense ratio of 0.32% and IEFA charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.