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Is WisdomTree International High Dividend ETF (DTH) a Strong ETF Right Now?

Zacks Equity Research
·3-min read

The WisdomTree International High Dividend ETF (DTH) 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.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

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.

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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.

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

Managed by Wisdomtree, DTH has amassed assets over $332.89 million, making it one of the average sized ETFs in the Broad Developed World ETFs. Before fees and expenses, DTH 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

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's 12-month trailing dividend yield comes in at 5.11%.

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, Totalenergies (TTE) accounts for about 3.89% of the fund's total assets, followed by Stellantis Nv (STLAM) and Bayerische Motoren Werke Ag (BMW).

Its top 10 holdings account for approximately 23.92% of DTH's total assets under management.

Performance and Risk

The ETF has gained about 2.58% and was up about 10.98% so far this year and in the past one year (as of 06/12/2024), respectively. DTH has traded between $34.66 and $41.21 during this last 52-week period.

The fund has a beta of 0.82 and standard deviation of 15.63% for the trailing three-year period, which makes DTH a medium risk choice in this particular space. With about 527 holdings, it effectively diversifies company-specific risk.

Alternatives

WisdomTree International High Dividend 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 $52.84 billion in assets, iShares Core MSCI EAFE ETF has $115.66 billion. EFA has an expense ratio of 0.33% and IEFA charges 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

WisdomTree International High Dividend ETF (DTH): ETF Research Reports

iShares MSCI EAFE ETF (EFA): ETF Research Reports

iShares Core MSCI EAFE ETF (IEFA): ETF Research Reports

TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report

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Zacks Investment Research