Launched on 06/16/2006, the WisdomTree International Equity ETF (DWM Quick QuoteDWM - Free Report) is a smart beta exchange traded fund offering 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.

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.

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.

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.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

The fund is managed by Wisdomtree, and has been able to amass over $618.33 million, which makes it one of the average sized ETFs in the Broad Developed World ETFs. Before fees and expenses, DWM 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

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.48%, making it on par with most peer products in the space.

It's 12-month trailing dividend yield comes in at 3.02%.

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.

Looking at individual holdings, Us Dollar accounts for about 83.08% of total assets, followed by Dreyfus Trsy Oblig Cash Mgmt Cl Ins and Hsbc Holdings Plc (HSBA).

The top 10 holdings account for about 104.91% of total assets under management.

Performance and Risk

Year-to-date, the WisdomTree International Equity ETF has gained about 30.48% so far, and is up about 28.42% over the last 12 months (as of 11/27/2025). DWM has traded between $52.06 $67.83 in this past 52-week period.

The ETF has a beta of 0.71 and standard deviation of 13.57% for the trailing three-year period, making it a low risk choice in the space. With about 1423 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) tracks MSCI EAFE Index and the iShares Core MSCI EAFE ETF (IEFA) tracks MSCI EAFE Investable Market Index. iShares MSCI EAFE ETF has $68.5 billion in assets, iShares Core MSCI EAFE ETF has $159.59 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.