The WisdomTree International High Dividend ETF (DTH) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer 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 work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.

If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.

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

Because the fund has amassed over $310.12 million, this makes it one of the average sized ETFs in the Broad Developed World ETFs. DTH is managed by Wisdomtree. DTH, before fees and expenses, 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

Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.

Operating expenses on an annual basis are 0.58% for this ETF, which makes it on par with most peer products in the space.

The fund has a 12-month trailing dividend yield of 4.33%.

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.

Looking at individual holdings, Hsbc Holdings Plc (HSBA) accounts for about 3.97% of total assets, followed by Shell Plc-New (SHEL) and Totalenergies (TTE).

The top 10 holdings account for about 20.22% of total assets under management.

Performance and Risk

The ETF has added roughly 1.69% and was up about 3.08% so far this year and in the past one year (as of 12/25/2024), respectively. DTH has traded between $37.09 and $41.85 during this last 52-week period.

The fund has a beta of 0.80 and standard deviation of 15.73% for the trailing three-year period, which makes DTH a medium risk choice in this particular space. With about 608 holdings, it effectively diversifies company-specific risk.

Alternatives

WisdomTree International High Dividend ETF is not a suitable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. Instead, there are other ETFs in the space which investors should 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 $53.39 billion in assets, iShares Core MSCI EAFE ETF has $118.29 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.

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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

Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report

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