WisdomTree has been a pioneer in two important categories of indexes and exchange-traded funds: small-cap equities and currency-hedged equities. With the launch of the WisdomTree Global SmallCap Dividend Index (WTGS) and the WisdomTree Global Hedged SmallCap Dividend Index (WTGSH), WisdomTree combines our innovative small-cap dividend methodology into a global index and also allows the choice to currency hedge.
We’ve written a lot recently about what it means to focus on quality in equity investments. The third quarter of 2015—with the volatility that it brought along with it—provided what we think was an interesting short period to illustrate the benefits of a quality approach.
At WisdomTree, we introduced in 2009 the concept of currency-hedged equities to the exchange-traded fund structure—a concept that caught fire subsequent to the introduction of Abenomics in Japan in late 2012. Since then, similar excitement has taken hold of eurozone equities and is beginning to take hold more broadly in developed international equities.
We like to periodically review the top five and bottom five performing exchange-traded funds (ETFs) at WisdomTree in order to see if interesting trends become apparent.
The European Central Bank (ECB) met on September 3 and the press conference afterwards reaffirmed the ECB’s commitment to provide continued monetary policy support. While Draghi didn’t announce additional asset purchases at the meeting, his remarks contained some very dovish messages.