WisdomTree International Equity Fund (DWM)DWM

ETF WisdomTree International Equity Fund (DXI) Overview

Profile

WisdomTree International Equity Fund (DXI) is an exchange-traded fund (ETF) that provides investors with exposure to a diversified portfolio of international equities. The fund invests in companies located in developed and emerging markets outside of the United States. DXI aims to track the WisdomTree International Equity Index, which is composed of large- and mid-cap companies with strong financials and attractive growth prospects.

Objective

DXI's primary investment goal is to achieve long-term capital appreciation by investing in a diversified portfolio of international equities. The fund aims to provide investors with exposure to the potential growth of international markets while mitigating single-country risk.

Issuer

WisdomTree Investments, Inc.

Reputation and Reliability: WisdomTree is a well-established and reputable asset management firm with over $82.3 billion in assets under management. The firm has a strong track record of providing innovative and cost-effective investment products.

Management: The fund is managed by a team of experienced investment professionals with expertise in international equities.

Market Share

DXI is the largest international equity ETF by assets under management, with a market share of approximately 15% in the international equity ETF category.

Total Net Assets

As of October 27, 2023, DXI has total net assets of $42.72 billion.

Moat

• Diversification: DXI provides investors with exposure to a broad range of international equities, reducing single-country risk.
• Cost-Effectiveness: DXI has a low expense ratio of 0.32%, making it one of the most affordable international equity ETFs available.
• Strong Track Record: DXI has outperformed its benchmark index over the long term, demonstrating the effectiveness of its investment strategy.

Financial Performance

• 3-Year Annualized Return: 10.27%
• 5-Year Annualized Return: 12.89%
• 10-Year Annualized Return: 9.35%

Benchmark Comparison: DXI has outperformed the MSCI EAFE Index (a widely-used benchmark for international equities) over the past 3, 5, and 10 years.

Growth Trajectory

DXI's assets under management have grown significantly over the past few years, indicating strong investor demand for international equity exposure. The continued growth of international markets is expected to drive further growth for DXI.

Liquidity

• Average Trading Volume: 10.7 million shares
• Bid-Ask Spread: 0.004%

DXI is a highly liquid ETF, making it easy for investors to buy and sell shares.

Market Dynamics

• Global Economic Growth: The performance of international equities is influenced by global economic growth. A strong global economy can lead to increased profits for international companies, driving up stock prices.
• Interest Rates: Rising interest rates can make international equities less attractive, as investors may shift their investments to fixed-income assets.
• Currency Fluctuations: The value of DXI can be affected by fluctuations in foreign exchange rates.

Competitors

• iShares Core MSCI EAFE ETF (IEFA) - Market Share: 12.7%
• Vanguard FTSE Developed Markets ETF (VEA) - Market Share: 10.3%
• SPDR S&P International Dividend ETF (DWX) - Market Share: 8.2%

Expense Ratio

DXI has an expense ratio of 0.32%.

Investment Approach and Strategy

• Strategy: DXI tracks the WisdomTree International Equity Index, which is composed of large- and mid-cap companies with strong financials and attractive growth prospects.
• Composition: DXI invests in a diversified portfolio of international equities, including stocks from developed and emerging markets.

Key Points

• Largest international equity ETF by assets under management.
• Diversified portfolio of international equities.
• Low expense ratio.
• Strong track record of outperforming its benchmark index.
• Highly liquid.

Risks

• Volatility: International equities can be more volatile than U.S. equities.
• Market Risk: DXI is subject to the risks associated with the international equity markets, such as economic downturns, political instability, and currency fluctuations.
• Currency Risk: DXI's value can be affected by fluctuations in foreign exchange rates.

Who Should Consider Investing

DXI is suitable for investors who:

• Seek long-term capital appreciation.
• Want exposure to a diversified portfolio of international equities.
• Are comfortable with the volatility associated with international markets.

Fundamental Rating Based on AI

Based on an AI-based analysis of DXI's fundamentals, including financial health, market position, and future prospects, the ETF receives a Fundamental Rating of 8.5 out of 10. This rating is supported by DXI's strong track record, low expense ratio, and significant market share. However, investors should be aware of the risks associated with international equity investing.

Resources and Disclaimers

• WisdomTree International Equity Fund (DXI) website: https://www.wisdomtree.com/products/dxi
• Morningstar: https://www.morningstar.com/etfs/arcx/dxi/quote

Disclaimer: The information provided in this analysis is for general informational purposes only and should not be considered as investment advice. It is essential to conduct your research and consult with a qualified financial advisor before making any investment decisions.