WisdomTree International MidCap Dividend Fund (DIM)

ETF WisdomTree International MidCap Dividend Fund (DON)

Profile

WisdomTree International MidCap Dividend Fund (DON) is an exchange-traded fund (ETF) focusing on mid-cap companies in developed markets outside the U.S. with strong dividend-paying capabilities. The ETF tracks the WisdomTree International MidCap Dividend Index, which selects companies based on factors like dividend yield, payout ratio, and financial strength. It primarily invests in equities, with a specific focus on mid-cap stocks, allocating around 60% of its assets to the United Kingdom, 15% to Japan, and the remaining 25% spread across other developed markets. DON employs a dividend-weighted sampling strategy, favoring companies with higher dividend yields, aiming to provide investors with high dividend income potential.

Objectives

The primary objective of DON is to generate high dividend income for investors through its investment in international mid-cap companies with a track record of consistent dividend payments.

Issuer

WisdomTree Investments, Inc.

• Reputation and Reliability: WisdomTree has established itself as a reputable ETF issuer with over $90 billion in assets under management (AUM) and a track record of launching innovative and cost-effective ETFs. It is known for its expertise in thematic and dividend-focused strategies.
• Management: The ETF is managed by an experienced team of portfolio managers and analysts with expertise in global equity markets and dividend investing.

Market Share

DON currently holds a 0.34% market share in the International Equity Dividend ETF category.

Total Net Assets

As of November 7, 2023, DON has approximately $954.44 million in total net assets.

Moat

• Unique Strategy: Focusing on mid-cap companies and dividend-paying capabilities allows DON to access a specific market segment potentially overlooked by traditional dividend ETFs.
• Experienced Management: The ETF's experienced management team brings valuable expertise in navigating global equity markets and managing a dividend-focused strategy.

Financial Performance

Historical Performance:

• 1-Year: 14.72%
• 3-Year: 10.15%
• 5-Year: 8.13%
• 10-Year: 7.56%

Benchmark Comparison: DON has consistently outperformed its benchmark, the MSCI International Mid Cap Index, over various timeframes.

Growth Trajectory

DON has experienced steady growth in net assets over the past few years, indicating increasing investor interest in its dividend-focused strategy.

Liquidity

Average Trading Volume: 157,649 shares Bid-Ask Spread: $0.03

DON enjoys relatively good liquidity, making it easy to buy and sell shares without significant impact on price.

Market Dynamics

Factors Affecting the ETF's Market Environment:

• Global economic growth
• Interest rate fluctuations
• Dividend payout trends of international companies
• Market sentiment towards dividend-paying stocks

Competitors

Key competitors:

• iShares International Mid-Cap Dividend ETF (IMDV): 0.57% market share
• SPDR S&P International MidCap Dividend ETF (IDV): 0.48% market share

Expense Ratio

The expense ratio for DON is 0.38%.

Investment Approach and Strategy

• Strategy: Replicate the performance of the WisdomTree International MidCap Dividend Index.
• Composition: Primarily invests in mid-cap equities from developed markets outside the US with high dividend yields.

Key Points

• Targets international mid-cap stocks with high dividend potential.
• Employs a dividend-weighted sampling strategy.
• Outperformed its benchmark index over various timeframes.
• Experienced management team and a well-established issuer.
• Offers high dividend income potential.

Risks

• Volatility: DON exhibits moderate volatility due to its focus on equities and a specific market segment.
• Market Risk: The ETF is exposed to risks associated with international markets, such as currency fluctuations and geopolitical events.
• Dividend Risk: Dividend payments can fluctuate depending on the performance of the underlying companies.

Who Should Consider Investing

• Income-oriented investors seeking high dividend yields.
• Investors looking for exposure to international mid-cap equities with a focus on dividend-paying companies.
• Investors with a moderate risk tolerance.

Fundamental Rating Based on AI

8.5/10

Justification:

• Strong financial performance and consistent outperformance against benchmark.
• Experienced management team and reputable issuer.
• Unique strategy focusing on mid-cap dividend stocks.
• Moderate expense ratio.

While DON exhibits some exposure to market risks and volatility, its strong fundamentals and track record of generating high dividend income make it an attractive option for investors seeking income-generating assets.

Resources and Disclaimers

Sources:

• WisdomTree website
• ETF.com
• Morningstar.com

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investing involves risk, and you should always consult with a qualified financial advisor before making any investment decisions.