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Is WisdomTree International MidCap Dividend Fund (DIM) a Hot ETF Right Now?
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Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the WisdomTree International MidCap Dividend Fund (DIM - Free Report) is a smart beta exchange traded fund launched on 06/16/2006.
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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix 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 $290.75 M, this makes it one of the average sized ETFs in the Broad Developed World ETFs. DIM is managed by Wisdomtree. DIM seeks to match the performance of the WisdomTree International MidCap Dividend Index before fees and expenses.
WisdomTree International MidCap Dividend Index is a fundamentally weighted index, measures the performance of the mid-capitalization segment of the dividend-paying market in the industrialized world outside the U.S & Canada. The Index is comprised of the companies that comprise the top 75% of market capitalization of the WisdomTree DEFA Index after the 300 largest companies have been removedn.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.58% for this ETF, which makes it one of the more expensive products in the space.
The fund has a 12-month trailing dividend yield of 2.89%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Telefonica Deutschland Holding (O2D) accounts for about 0.67% of the fund's total assets, followed by Snam Spa (SRG - Free Report) and Centrica Plc (CNA - Free Report) .
The top 10 holdings account for about 5.71% of total assets under management.
Performance and Risk
The fund's year-to-date return has lost about -2.55%, and it's up approximately 2.72% in the last one year (as of 08/08/2018). DIM has traded between $64.61 and $73.67 in the past 52-week period.
The ETF has a beta of 0.90 and standard deviation of 14.25% for the trailing three-year period, making it a low choice in the space. With about 625 holdings, it effectively diversifies company-specific risk.
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 MidCap Dividend Fund (DIM) a Hot ETF Right Now?
Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the WisdomTree International MidCap Dividend Fund (DIM - Free Report) is a smart beta exchange traded fund launched on 06/16/2006.
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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix 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 $290.75 M, this makes it one of the average sized ETFs in the Broad Developed World ETFs. DIM is managed by Wisdomtree. DIM seeks to match the performance of the WisdomTree International MidCap Dividend Index before fees and expenses.
WisdomTree International MidCap Dividend Index is a fundamentally weighted index, measures the performance of the mid-capitalization segment of the dividend-paying market in the industrialized world outside the U.S & Canada. The Index is comprised of the companies that comprise the top 75% of market capitalization of the WisdomTree DEFA Index after the 300 largest companies have been removedn.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.58% for this ETF, which makes it one of the more expensive products in the space.
The fund has a 12-month trailing dividend yield of 2.89%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Telefonica Deutschland Holding (O2D) accounts for about 0.67% of the fund's total assets, followed by Snam Spa (SRG - Free Report) and Centrica Plc (CNA - Free Report) .
The top 10 holdings account for about 5.71% of total assets under management.
Performance and Risk
The fund's year-to-date return has lost about -2.55%, and it's up approximately 2.72% in the last one year (as of 08/08/2018). DIM has traded between $64.61 and $73.67 in the past 52-week period.
The ETF has a beta of 0.90 and standard deviation of 14.25% for the trailing three-year period, making it a low choice in the space. With about 625 holdings, it effectively diversifies company-specific risk.
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.