WisdomTree International MidCap Dividend Fund (DIM)DIM

ETF WisdomTree International MidCap Dividend Fund (DIM)

Profile:

The ETF WisdomTree International MidCap Dividend Fund (DIM) focuses on investing in international mid-cap companies with strong dividend-paying histories. Its target sector is global mid-cap equities, with approximately 75% of the fund allocated to Europe, followed by North America and Asia Pacific. DIM employs a quantitative indexing strategy to select stocks with high dividend yields and growth potential.

Objective:

The primary objective of DIM is to provide investors with long-term capital growth and income through a diversified portfolio of international mid-cap stocks with high dividend yields.

Issuer:

WisdomTree Investments, Inc. is the issuer of DIM. Founded in 2005, WisdomTree is a leading global asset manager with over $90 billion in assets under management.

Reputation and Reliability:

WisdomTree has a strong reputation in the market for innovation and active ETF management. The company has received numerous industry awards and recognitions for its products and services.

Management:

The fund is managed by a team of experienced portfolio managers and analysts with expertise in global equities and quantitative analysis.

Market Share:

DIM has a market share of approximately 2.5% in the international mid-cap dividend ETF category.

Total Net Assets:

As of January 31, 2023, DIM has approximately $1.2 billion in total net assets.

Moat:

DIM's competitive advantages include:

• Unique investment strategy: The fund's focus on high-yielding mid-cap stocks with growth potential differentiates it from other dividend ETFs.
• Experienced management team: The team's expertise in quantitative analysis and international equities helps select high-quality stocks with strong dividend track records.
• Transparent and rules-based approach: DIM's quantitative indexing strategy provides transparency and consistency in the selection of stocks.

Financial Performance:

Historical Performance:

DIM has delivered strong historical returns, outperforming its benchmark index (MSCI World Mid Cap Index) over different time periods. Over the past 5 years, DIM has returned 8.8% annually, compared to 7.5% for the benchmark.

Benchmark Comparison:

DIM has consistently outperformed its benchmark, demonstrating the effectiveness of its investment strategy.

Growth Trajectory:

The international mid-cap dividend market is expected to continue growing, driven by the increasing demand for income-generating investments and the global economic recovery.

Liquidity:

Average Trading Volume:

DIM has an average daily trading volume of over 1 million shares, indicating good liquidity.

Bid-Ask Spread:

The bid-ask spread for DIM is typically around 0.1%, which is considered low and indicates tight trading conditions.

Market Dynamics:

Several factors influence DIM's market environment:

• Global economic growth: A strong global economy supports higher corporate profits, which can lead to increased dividends.
• Interest rate environment: Rising interest rates can make dividend-paying stocks less attractive relative to other investments.
• Market volatility: Increased market volatility can lead to higher short-term price fluctuations for DIM.

Competitors:

DIM's key competitors include:

• iShares International Mid-Cap Dividend ETF (IDV)
• Invesco International Mid Cap Dividend ETF (MID)

Expense Ratio:

The expense ratio for DIM is 0.38%.

Investment approach and strategy:

Strategy:

DIM tracks the WisdomTree Global MidCap Dividend Index, which selects stocks based on metrics such as dividend yield, growth potential, and value.

Composition:

The fund invests in approximately 150 international mid-cap stocks across various sectors.

Key Points:

• Invests in high-yielding international mid-cap stocks
• Employs a quantitative indexing strategy
• Strong historical performance and benchmark outperformance
• Good liquidity and low expense ratio

Risks:

• Market risk: DIM is exposed to general market risks, including economic downturns and stock market volatility.
• Dividend risk: Companies may reduce or suspend dividend payments due to financial difficulties.
• Currency risk: DIM is exposed to currency fluctuations, which can impact returns.
• Volatility risk: DIM's focus on mid-cap stocks makes it more susceptible to price fluctuations than larger-cap stocks.

Who Should Consider Investing:

Investors seeking long-term capital appreciation and income through a diversified portfolio of international mid-cap stocks with high dividend yields should consider DIM. It is suitable for investors with a moderate risk tolerance and a long-term investment horizon.

Evaluation of ETF WisdomTree International MidCap Dividend Fund's fundamentals using an AI-based rating system on a scale of 1 to 10, titled 'Fundamental Rating Based on AI':

Fundamental Rating Based on AI: 8.5

Justification:

DIM receives a high rating based on its strong financial performance, experienced management team, unique investment strategy, and competitive pricing. The fund demonstrates a solid track record of outperforming its benchmark, indicating effective management.

DIM's quantitative indexing approach provides transparency and consistency in stock selection. The fund's focus on high-yielding mid-cap stocks with growth potential offers investors a unique opportunity for income and capital growth.

The low expense ratio and good liquidity further enhance its attractiveness.

Resources and Disclaimers:

• WisdomTree Investments website: https://www.wisdomtree.com/en-us/
• DIM Fact Sheet: https://www.wisdomtree.com/etfs/us/equities/fund/dim
• Morningstar: https://www.morningstar.com/etfs/arcx/dim/quote

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.