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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 Broad Developed World ETFs category of the market.

What Are Smart Beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

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.

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

Because the fund has amassed over $487.15 million, this makes it one of the average sized ETFs in the Broad Developed World ETFs. DTH is managed by Wisdomtree. 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

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.

The fund has a 12-month trailing dividend yield of 3.98%.

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.

When you look at individual holdings, Us Dollaraccounts for about 80.54% of the fund's total assets, followed by Dreyfus Trsy Oblig Cash Mgmt Cl Ins and Hsbc Holdings Plc (HSBA).

DTH's top 10 holdings account for about 113.16% of its total assets under management.

Performance and Risk

Year-to-date, the WisdomTree International High Dividend ETF has gained about 32.97% so far, and is up about 28.81% over the last 12 months (as of 11/03/2025). DTH has traded between $37.33 $49.90 in this past 52-week period.

The fund has a beta of 0.66 and standard deviation of 14.24% for the trailing three-year period, which makes DTH a medium risk choice in this particular space. With about 591 holdings, it effectively diversifies company-specific risk .

Alternatives

WisdomTree International High Dividend ETF is not a suitable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.

iShares MSCI EAFE ETF (EFA) tracks MSCI EAFE Index and the iShares Core MSCI EAFE ETF (IEFA) tracks MSCI EAFE Investable Market Index. iShares MSCI EAFE ETF has $68.21 billion in assets, iShares Core MSCI EAFE ETF has $157.21 billion. EFA has an expense ratio of 0.32% and IEFA changes 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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