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Is WisdomTree International LargeCap Dividend Fund (DOL) a Hot ETF Right Now?

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Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the WisdomTree International LargeCap Dividend Fund (DOL) is a smart beta exchange traded fund launched on 06/16/2006.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

The fund is managed by Wisdomtree. DOL has been able to amass assets over $404.01 M, making it one of the average sized ETFs in the Broad Developed World ETFs. This particular fund seeks to match the performance of the WisdomTree International LargeCap Dividend Index before fees and expenses.

WisdomTree International LargeCap Dividend Index is a fundamentally weighted index that measures the performance of the large-capitalization segment of the dividend-paying market in the industrialized world outside the U.S. and Canada. The Index is comprised of the 300 largest companies ranked by market capitalization from the WisdomTree DEFA Index.

Cost & Other Expenses

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.48%, making it on par with most peer products in the space.

DOL's 12-month trailing dividend yield is 3.67%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

Looking at individual holdings, China Mobile Ltd accounts for about 2.13% of total assets, followed by Novartis Ag (NOVN) and Royal Dutch Shell Plc Class A (RDSA).

Performance and Risk

So far this year, the ETF has lost about -3.90%, and it's up approximately 1.24% in the last one year (as of 09/05/2018). DOL has traded between $46.92 and $54.08 in the past 52-week period.

DOL has a beta of 0.89 and standard deviation of 14.67% for the trailing three-year period, which makes the fund a medium choice in the space. With about 266 holdings, it effectively diversifies company-specific risk.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.


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