Conservative · Stocks to Consider and Updates

WisdomTree International Equity Fund – Update

Since adding the WisdomTree International Equity Fund (NYSE: DWM – $55.25) to the conservative portfolio in April of this year, the shares have appreciated nearly 12% and provided a dividend yield equal to 3% on an annualized basis. As detailed in my original posting at the time, DWM seeks to track the price and yield performance of the WisdomTree International Equity Index which is focused on large-cap value stocks. At least 95% of the fund’s total assets are invested in component securities of the dividend-weighted index of companies in the industrialized world – excluding Canada and the United States – that pay dividends. The fund is currently over-weighted in financials with large positions in companies that comprise the industrial and consumer discretionary sectors. DWM is also over-weighted in companies located in  the U.K, Japan and France. At present, the fund is holding about 5.5% of its assets in cash.

       Here is the latest breakdown of the fund’s holdings.

      Overall, positions in the WisdomTree International Equity exchange traded fund is a solid, reliable option for conservative investors seeking dividends in the ex-North American space.

3 thoughts on “WisdomTree International Equity Fund – Update

    1. Good question. Frank from New Jersey asks: “Why doesn’t the WisdomTree International Equity Fund have any investments in the U.S.”?  Mutual funds, including indexes that are tracked by exchange traded funds, such as DWM, that invest in foreign assets are divided into two groups: Global Funds and International Funds. Global funds include not only foreign securities, but also securities based in the issuer’s home country – in this case the U.S. Thus, global funds may include a large percentage of their holdings (e.g. 20% -30%) in U.S. companies as well as those based abroad. International funds, however, take a more restrictive approach and invest exclusively in companies domiciled outside of the home country and are a pure-play portfolio of foreign stocks. The WisdomTree International index, therefore, consists solely of companies that are headquartered outside of the United States. In addition, and at the discretion of the index administrator, DWM also has decided to exclude neighboring Canadian-based companies, hence: Ex-North America. However, some cash holdings may be held in instruments of the U.S., which is the case of WisdomTree International, with about 5% of assets in domestic short-term fixed income.

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