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Is WisdomTree International High Dividend ETF (DTH) a Strong ETF Right Now?
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A smart beta exchange traded fund, the WisdomTree International High Dividend ETF (DTH - 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?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Wisdomtree, and has been able to amass over $201.78 million, which makes it one of the average sized ETFs in the Broad Developed World ETFs. DTH, before fees and expenses, seeks to match the performance of the WisdomTree International High Dividend Index.
The WisdomTree International High Dividend Index is a fundamentally weighted Index that measures the performance of companies with high dividend yields selected from the WisdomTree International Equity Index.
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.
Annual operating expenses for this ETF are 0.58%, making it on par with most peer products in the space.
DTH's 12-month trailing dividend yield is 4.81%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
When you look at individual holdings, Bhp Group Ltd (BHP - Free Report) accounts for about 6.44% of the fund's total assets, followed by Rio Tinto Plc (RIO - Free Report) and Novartis Ag .
The top 10 holdings account for about 24.09% of total assets under management.
Performance and Risk
Year-to-date, the WisdomTree International High Dividend ETF return is roughly 1.66% so far, and is down about -0.81% over the last 12 months (as of 06/06/2022). DTH has traded between $36.29 and $41.75 in this past 52-week period.
The ETF has a beta of 0.80 and standard deviation of 21.84% for the trailing three-year period, making it a medium risk choice in the space. With about 411 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree International High Dividend 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 $50.23 billion in assets, iShares Core MSCI EAFE ETF has $94.46 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 High Dividend ETF (DTH) a Strong ETF Right Now?
A smart beta exchange traded fund, the WisdomTree International High Dividend ETF (DTH - 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?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Wisdomtree, and has been able to amass over $201.78 million, which makes it one of the average sized ETFs in the Broad Developed World ETFs. DTH, before fees and expenses, seeks to match the performance of the WisdomTree International High Dividend Index.
The WisdomTree International High Dividend Index is a fundamentally weighted Index that measures the performance of companies with high dividend yields selected from the WisdomTree International Equity Index.
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.
Annual operating expenses for this ETF are 0.58%, making it on par with most peer products in the space.
DTH's 12-month trailing dividend yield is 4.81%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
When you look at individual holdings, Bhp Group Ltd (BHP - Free Report) accounts for about 6.44% of the fund's total assets, followed by Rio Tinto Plc (RIO - Free Report) and Novartis Ag .
The top 10 holdings account for about 24.09% of total assets under management.
Performance and Risk
Year-to-date, the WisdomTree International High Dividend ETF return is roughly 1.66% so far, and is down about -0.81% over the last 12 months (as of 06/06/2022). DTH has traded between $36.29 and $41.75 in this past 52-week period.
The ETF has a beta of 0.80 and standard deviation of 21.84% for the trailing three-year period, making it a medium risk choice in the space. With about 411 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree International High Dividend 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 $50.23 billion in assets, iShares Core MSCI EAFE ETF has $94.46 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.