We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is WisdomTree International MidCap Dividend Fund (DIM) a Hot ETF Right Now?
Read MoreHide Full Article
Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree International MidCap Dividend Fund (DIM - Free Report) provides investors broad exposure to the Broad Developed World ETFs category of the U.S. equity market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
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.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
DIM is managed by Wisdomtree, and this fund has amassed over $273.60 M, which makes it one of the average sized ETFs in the Broad Developed World ETFs. This particular fund seeks to match the performance of the WisdomTree International MidCap Dividend Index before fees and expenses.
WisdomTree International MidCap Dividend Index is a fundamentally weighted index, measures the performance of the mid-capitalization segment of the dividend-paying market in the industrialized world outside the U.S & Canada. The Index is comprised of the companies that comprise the top 75% of market capitalization of the WisdomTree DEFA Index after the 300 largest companies have been removedn.
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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.58%.
It has a 12-month trailing dividend yield of 2.58%.
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.
Looking at individual holdings, Fortum Oyj (FORTUM) accounts for about 1.30% of total assets, followed by Neste Oyj (NESTE) and Standard Life Plc (SL).
DIM's top 10 holdings account for about 6.41% of its total assets under management.
Performance and Risk
The ETF has lost about -0.70% so far this year and is up about 8.40% in the last one year (as of 06/19/2018). In the past 52-week period, it has traded between $63.33 and $73.67.
The ETF has a beta of 0.92 and standard deviation of 14.51% for the trailing three-year period, making it a low choice in the space. With about 593 holdings, it effectively diversifies company-specific risk.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is WisdomTree International MidCap Dividend Fund (DIM) a Hot ETF Right Now?
Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree International MidCap Dividend Fund (DIM - Free Report) provides investors broad exposure to the Broad Developed World ETFs category of the U.S. equity market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
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.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
DIM is managed by Wisdomtree, and this fund has amassed over $273.60 M, which makes it one of the average sized ETFs in the Broad Developed World ETFs. This particular fund seeks to match the performance of the WisdomTree International MidCap Dividend Index before fees and expenses.
WisdomTree International MidCap Dividend Index is a fundamentally weighted index, measures the performance of the mid-capitalization segment of the dividend-paying market in the industrialized world outside the U.S & Canada. The Index is comprised of the companies that comprise the top 75% of market capitalization of the WisdomTree DEFA Index after the 300 largest companies have been removedn.
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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.58%.
It has a 12-month trailing dividend yield of 2.58%.
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.
Looking at individual holdings, Fortum Oyj (FORTUM) accounts for about 1.30% of total assets, followed by Neste Oyj (NESTE) and Standard Life Plc (SL).
DIM's top 10 holdings account for about 6.41% of its total assets under management.
Performance and Risk
The ETF has lost about -0.70% so far this year and is up about 8.40% in the last one year (as of 06/19/2018). In the past 52-week period, it has traded between $63.33 and $73.67.
The ETF has a beta of 0.92 and standard deviation of 14.51% for the trailing three-year period, making it a low choice in the space. With about 593 holdings, it effectively diversifies company-specific risk.
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.