In view of the global market’s sluggish performance of late, the shares of the WisdomTree International Equity exchange traded fund (NYSE: DWM – $49.83), have held up reasonably well since it was added to the conservative candidate list in April, 2017 appreciating about one percent and providing conservative investors with an annual 3.71% dividend yield. The fund’s sector position in energy contributed most positively to performance in 2018, while its position in industrials contributed least positively. The fund’s country position in Hong Kong contributed most positively to performance, while its position in Japan contributed least positively last year. The U.S. dollar rallied over the fiscal year which served as a headwind for international equities. The fund’s overweight to large-cap equities, combined with underweights to both mid-cap and small-cap equities, provided a bit of downside protection during the fourth quarter of 2018, where a broad market correction brought about by trade war apprehension with China and fears of a U.S. Federal Reserve policy misstep sent global markets sharply downward as the year closed.
Including a 5% cash position, DWM’s top ten holdings are:
By region, the fund is overweight in Europe with a substantial position in Asia.
DWM has a large portion of its holdings in financial stocks as well as industrials and consumer staples.
Morningstar recently upgraded the fund to four stars out of five. Conservative investors willing to include a well-diversified portfolio of foreign high-quality, large cap dividend paying stocks to their account, positions in the WisdomTree International Equity fund remain a solid choice.