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Is WisdomTree International Equity ETF (DWM) a Strong ETF Right Now?

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The WisdomTree International Equity ETF (DWM - Free Report) made its debut on 06/16/2006, and is a smart beta exchange traded fund that provides broad exposure to the Broad Developed 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.

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.

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.

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

DWM is managed by Wisdomtree, and this fund has amassed over $663.87 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

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.

With on par with most peer products in the space, this ETF has annual operating expenses of 0.48%.

It has a 12-month trailing dividend yield of 2.92%.

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.

Taking into account individual holdings, Hsbc Holdings Plc (HSBA) accounts for about 1.52% of the fund's total assets, followed by Toyota Motor Corp and Intesa Sanpaolo Spa (ISP).

Its top 10 holdings account for approximately 11.4% of DWM's total assets under management.

Performance and Risk

Year-to-date, the WisdomTree International Equity ETF return is roughly 4.77% so far, and is up roughly 35.05% over the last 12 months (as of 01/29/2026). DWM has traded between $52.06 $72.96 in this past 52-week period.

The ETF has a beta of 0.67 and standard deviation of 13.36% for the trailing three-year period, making it a low risk choice in the space. With about 1463 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 $74.62 billion in assets, iShares Core MSCI EAFE ETF has $173.36 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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