WisdomTree International High Dividend Fund (DTH)

ETF WisdomTree International High Dividend Fund (DHS)

Profile: WisdomTree International High Dividend Fund (DHS) is an exchange-traded fund (ETF) that focuses on high-dividend-paying stocks from developed and emerging markets outside the United States. It employs a fundamental indexing strategy to select companies with strong financial profiles and consistent dividend payouts. The fund holds approximately 500 stocks across various sectors, with the largest allocations in financials, energy, and consumer goods.

Objective: DHS aims to provide investment results that, before expenses, generally correspond to the price and yield performance of the WisdomTree International High Dividend Hedged Equity Index. This index seeks to track the total returns of an investable universe of dividend-paying companies in developed and emerging markets outside the U.S.

Issuer: This ETF is issued by WisdomTree Investments, Inc., a publicly traded asset management firm with over $85 billion in assets under management. As of October 31, 2023, DHS has over $3.3 billion in total net assets.

Reputation and Reliability: WisdomTree has a strong reputation in the financial industry and a 20+ year track record of offering diversified and innovative ETFs. The firm's commitment to transparency, its robust investment methodologies, and its dedication to client success have established it as a reliable provider in the ETF space.

Management: DHS is managed by experienced investment professionals at WisdomTree, who utilize rigorous quantitative models and a deep understanding of global markets to select high-quality dividend stocks for the fund. The portfolio management team has an average of 15+ years of experience in investment research and portfolio construction.

Market Share: In the international high-dividend ETF segment, DHS holds the largest market share with approximately 50%, followed by competitors with significantly smaller shares. This signifies the strong investor interest in DHS's specific strategy and track record.

Financial Performance: DHS has a strong historical performance record. Over the past 3 years (as of November 7th, 2023), DHS delivered annualized returns of 7.53%, exceeding the benchmark index (MSCI EAFE High Dividend Yield Index) which returned 4.88%. This outperformance demonstrates the effectiveness of the fund's selection strategy.

Growth Trajectory: The growth trajectory for this ETF is promising due to several factors. Growing investor demand for income-generating investments, rising global dividends in various markets outside the U.S., and continued economic development in emerging markets offer favorable prospects for DHS to expand its asset base.

Liquidity: DHS enjoys high liquidity with an average daily trading volume exceeding 500,000 shares. This allows investors easy entry and exit from their positions without incurring significant price impact. The tight bid-ask spread also reflects the efficiency of this ETF's trading activity.

Market Dynamics:

Several market dynamics influence DHS, including:

• Global Economic Trends: Continued global economic expansion could positively impact the performance of companies in the ETF portfolio.
• Interest Rate Environment: Rising interest rates in major economies could decrease demand for income-generating investments like dividend stocks.
• Foreign Exchange Fluctuations: Fluctuations in currency exchange rates can impact returns for investors outside the USD zone.

Competitors:

• Vanguard International Dividend Appreciation ETF (VIGI)
• iShares International Select Dividend ETF (IDV)
• SPDR S&P International Dividend ETF (DWX)

Expense Ratio: DHS has an expense ratio of 0.58%, making it a relatively affordable option within this ETF category.

Investment Approach and Strategy: DHS tracks the WisdomTree International High Dividend Hedged Equity Index, which uses fundamental metrics like profitability, payout ratio, and dividend history to select high-yielding stocks from developed and emerging countries outside the U.S. The ETF holds stocks across diverse sectors, with diversification across industries reducing concentration risk.

Key Points:

• Provides exposure to high-dividend paying stocks in developed and emerging markets outside the U.S.
• Employs a robust fundamental indexing methodology for stock selection.
• Has a strong historical performance track record.
• High liquidity and affordable expense ratio.

Risks:

• Volatility of underlying markets can lead to fluctuations in the ETF's value.
• Dividends are not guaranteed and may decrease or cease completely.
• Currency exchange rate fluctuations may negatively impact returns for foreign investors.

Who should consider investing:

• Income-oriented investors seeking global exposure to high-yielding
• Individuals wanting to diversify portfolios outside US equities
• Investors with long-term investment horizons

Fundamental Rating Based on AI:

8.2 out of 10:

DHS receives a positive AI-powered rating based on its strong financial performance, robust investment approach, experienced portfolio management team, and leading position in the international high-dividend ETF space. However, potential risks like market fluctuations and dividend uncertainties remain important considerations.

Resources and Disclaimers:

• WisdomTree Website: https://www.wisdomtree.com/products/dhs
• Morningstar: https://www.morningstar.com/etfs/arcx/dhs/quote

Disclaimer:

This information is for informational purposes only and should not be considered as investment advice. Please consult your financial advisor before making any investment decisions.