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Is WisdomTree International High Dividend ETF (DTH) a Strong ETF Right Now?
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Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree International High Dividend ETF (DTH - Free Report) provides investors broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
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.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Wisdomtree. DTH has been able to amass assets over $386.90 million, making it one of the average sized ETFs in the World ETFs. Before fees and expenses, this particular fund 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
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 0.58% for DTH, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 6.81%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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 5.61% of the fund's total assets, followed by Novartis Ag and Totalenergies (TTE - Free Report) .
DTH's top 10 holdings account for about 22.74% of its total assets under management.
Performance and Risk
The ETF has added about 6.76% and is up about 24.12% so far this year and in the past one year (as of 09/26/2023), respectively. DTH has traded between $30.01 and $39.12 during this last 52-week period.
The fund has a beta of 0.82 and standard deviation of 16.12% for the trailing three-year period, which makes DTH a medium risk choice in this particular space. With about 541 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree International High Dividend ETF is not a suitable option for investors seeking to outperform the World ETFs segment of the market. Instead, there are other ETFs in the space which investors should 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 $47.17 billion in assets, iShares Core MSCI EAFE ETF has $95.85 billion. EFA has an expense ratio of 0.33% 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 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?
Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree International High Dividend ETF (DTH - Free Report) provides investors broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
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.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Wisdomtree. DTH has been able to amass assets over $386.90 million, making it one of the average sized ETFs in the World ETFs. Before fees and expenses, this particular fund 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
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 0.58% for DTH, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 6.81%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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 5.61% of the fund's total assets, followed by Novartis Ag and Totalenergies (TTE - Free Report) .
DTH's top 10 holdings account for about 22.74% of its total assets under management.
Performance and Risk
The ETF has added about 6.76% and is up about 24.12% so far this year and in the past one year (as of 09/26/2023), respectively. DTH has traded between $30.01 and $39.12 during this last 52-week period.
The fund has a beta of 0.82 and standard deviation of 16.12% for the trailing three-year period, which makes DTH a medium risk choice in this particular space. With about 541 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree International High Dividend ETF is not a suitable option for investors seeking to outperform the World ETFs segment of the market. Instead, there are other ETFs in the space which investors should 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 $47.17 billion in assets, iShares Core MSCI EAFE ETF has $95.85 billion. EFA has an expense ratio of 0.33% 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 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.