DVEM Offers Broad-Based Access to Growth and Income Potential of Emerging Markets
IQDG as Newest Addition to Forward-Looking Quality Dividend Growth Suite of ETFs
NEW YORK, April 07, 2016 (GLOBE NEWSWIRE) -- WisdomTree (NASDAQ:WETF), an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager, today announced the launch of the WisdomTree Emerging Markets Dividend Fund (DVEM) , and the WisdomTree International Quality Dividend Growth Fund (IQDG) on the BATS Exchange. DVEM seeks to provide exposure to dividend-paying stocks in the emerging markets and has an expense ratio of 0.32%. IQDG is designed to provide exposure to developed international dividend-paying stocks with growth characteristics and has an expense ratio of 0.38%.1
DVEM: A Broad Market Solution for Emerging Market Equity Allocations
WisdomTree believes that dividends provide an objective measure of a company’s health and profitability – one that cannot be affected by accounting methods or government decisions. And while the emerging markets may not be the first place investors look when seeking income, we believe the region’s potential is significant. Over 93% of traditional emerging market benchmarks2 are comprised of companies that paid at least one dividend over the prior 12 months.3
“Dividends offer numerous benefits including the potential to enhance performance, increase portfolio income and help reduce downside risk,” said Jeremy Schwartz, WisdomTree Director of Research. “The power of weighting equity markets by the dividends companies pay rather than by their market value can be seen in the live performance track record of our existing WisdomTree Emerging Markets Dividend Index, relative to the broad market benchmark, the MSCI Emerging Markets Index.”4
DVEM tracks a WisdomTree dividend-weighted index with nearly nine years of live performance data, broad exposure and a relative value rebalance.5 The cumulative outperformance and above benchmark dividend levels were achieved with less volatility and lower risk, whether evaluating standard deviation6 or beta7 relative to the broad market benchmark.
IQDG: Capturing International Quality Dividend Growth
Dividend-paying equities have increasingly become an attractive option for investors looking to generate income and pursue higher total return potential. And within developed international equities, we believe there to be significant opportunity in seeking securities that exhibit the potential for dividend growth.
Schwartz said, “Rather than relying on historical records of dividend increases (as many existing indexes do), IQDG uses real-time growth and quality metrics focused on companies who have most potential to grow future dividends. This forward-looking process – utilized by our existing suite of quality dividend growth funds – is designed to capitalize on the faster dividend growth segment of the market.”
IQDG’s existing currency hedged counterpart – The WisdomTree International Hedged Quality Dividend Growth Fund (IHDG) – was ranked as the single best performing fund in 2015 based on total return. The universe of 1547 funds consists of all international equity open-ended (OE) mutual funds and ETFs characterized by Morningstar as “Foreign Large Value, Foreign Large Blend or Foreign Large Growth.”8
View standardized performance for IHDG here.
Performance is historical and does not guarantee future results. Current performance may be lower or higher than quoted. Investment returns and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. Performance data for the most recent month-end is available at www.wisdomtree.com.
The Funds DVEM and IQDG are new and have a limited operating history.
____________________________
1 The Fund’s gross expense ratio of 0.48% and the net expense ratio of 0.38% reflect a contractual waiver of 0.10% through 07/31/17.
2 Defined as the percent weight of the MSCI Emerging Markets Index, a float-adjusted market capitalization weighted benchmark, whose weight was in dividend paying stocks, as of March 31, 2016.
3 Source: Bloomberg, with data referring to the MSCI Emerging Markets Index Universe, as of WisdomTree Emerging Markets Dividend Index 9/30/2015 screening date.
4 MSCI Emerging Markets Index: A broad market capitalization-weighted Index showing performance of equities across 23 emerging market countries defined as “emerging markets” by MSCI.
5 Rebalance: An Index is created by applying a certain set of selection and weighting rules at a certain frequency. WisdomTree rebalances, or reapplies its rules-based selection and weighting process, on an annual basis.
6 Standard deviation: measure of how widely an investment or investment strategy’s returns move relative to its average returns for an observed period. A higher value implies more “risk”, in that there is more of a chance the actual return observed is farther away from the average return.
7 Beta: Measure of the volatility of an index or investment relative to a benchmark. A reading of 1.00 indicates that the investment has moved in lockstep with the benchmark; a reading of -1.00 indicates that the investment has moved in the exact opposite direction of the benchmark.
8 Sources: Morningstar Direct, Bloomberg, WisdomTree, as of 01/15/16.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. To obtain a prospectus containing this and other important information, please call 866.909.WISE (9473), or visit wisdomtree.com to view or download a prospectus. Read the prospectus carefully before you invest.
There are risks associated with investing, including possible loss of principal. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Investments in emerging or offshore markets are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation and intervention or political developments. Heightened sector exposure increases the Funds’ vulnerability to any single economic, regulatory or other development impacting that sector. This may result in greater share price volatility. The Funds invest in the securities included in, or representative of, its Index regardless of their investment merit, and the Funds do not attempt to outperform its Index or take defensive positions in declining markets. Due to the investment strategies of these Funds, they may make higher capital gain distributions than other ETFs. Please read the Funds’ prospectus for specific details regarding the Funds’ risk profile.
Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such.
Dividends are not guaranteed and a company currently paying dividends may cease paying dividends at any time. You cannot invest directly in an index. Index performance does not represent actual fund or portfolio performance. A fund or portfolio may differ significantly from the securities included in the index. Index performance assumes reinvestment of dividends but does not reflect any management fees, transaction costs or other expenses that would be incurred by a portfolio or fund, or brokerage commissions on transactions in fund shares. Such fees, expenses and commissions could reduce returns. WisdomTree, its affiliates and their independent providers are not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.
Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC.
WisdomTree Funds are distributed by Foreside Fund Services, LLC, in the U.S. only.
WTPR-0046
About WisdomTree
WisdomTree Investments, Inc., through its subsidiaries in the U.S., Europe and Japan (collectively, “WisdomTree”), is an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager headquartered in New York. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. WisdomTree currently has approximately $44.2 billion in assets under management globally. For more information, please visit www.wisdomtree.com or follow us on Twitter @WisdomTreeETFs.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.