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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?

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.

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.

This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.

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

DWM is managed by Wisdomtree, and this fund has amassed over $652.83 million, which makes it one of the average sized ETFs in the Broad Developed World ETFs. DWM seeks to match the performance of the WisdomTree International Equity Index before fees and expenses.

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

When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.

Operating expenses on an annual basis are 0.48% for this ETF, which makes it on par with most peer products in the space.

DWM's 12-month trailing dividend yield is 2.87%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

Taking into account individual holdings, Hsbc Holdings Plc (HSBA) accounts for about 1.53% of the fund's total assets, followed by Toyota Motor Corp and Novartis Ag (NOVN).

DWM's top 10 holdings account for about 11.02% of its total assets under management.

Performance and Risk

The ETF has added roughly 3.49% and it's up approximately 25.75% so far this year and in the past one year (as of 04/02/2026), respectively. DWM has traded between $52.06 and $75.98 during this last 52-week period.

The fund has a beta of 0.68 and standard deviation of 13.72% for the trailing three-year period, which makes DWM a low risk choice in this particular space. With about 1448 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 $72.85 billion in assets, iShares Core MSCI EAFE ETF has $173.03 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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