A Decade Of Out-Performance: Inside WisdomTree's Dividend-Weighted Strategies
A decade ago, WisdomTree changed passive investing with the introduction of a sweeping series of dividend-weighted indexes.
WisdomTree Chief Investment Strategist Luciano Siracusano discusses our approach to dividends and how several WisdomTree
strategies outperformed traditional beta benchmarks over the past 10 years.
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March 12, 2015
There has always been a strong case for European equities. But what about the euro risk? Learn how hedging the euro could help reduce volatility in our podcast.
Director of Research
Recorded February 19, 2015.
Past performance is not indicative of future results. You cannot invest directly in an index.
Hedge: Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.
Monetary easing: Actions undertaken by a central bank with the ultimate desired effect of lowering interest rates and stimulating the economy.
Mario Draghi: President of the European Central Bank.
Quantitative Easing (QE): A government monetary policy occasionally used to increase the money supply by buying government securities or other securities from the market. Quantitative easing increases the money supply by flooding financial institutions with capital, in an effort to promote increased lending and liquidity.
Currency risk: Uncertainty in returns that comes from fluctuations in the exchange rate of one currency relative to another.
WisdomTree Europe Hedged Equity Fund (HEDJ)
WisdomTree Europe Hedged SmallCap Equity (EUSC)
Price-to-earnings (P/E) ratio: Share price divided by earnings per share. Lower numbers indicate an ability to access greater amounts of earnings per dollar invested.
Price-to-dividend ratio: Refers to the index price divided by the trailing 12-month dividends.
Dividend yield: a financial ratio that shows how much a company pays out in dividends each year relative to its share price.
S&P 500 Index: Market capitalization-weighted benchmark of 500 stocks selected by the Standard and Poor’s Index Committee designed to represent the performance of the leading industries in the United States economy.
Russell 2000 Index: measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. U.S. investors only: to obtain a prospectus containing this and other important information, call 1-866-909-WISE (9473) or visit wisdomtree.com. 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 currency involve additional special risks,
such as credit risk and interest rate fluctuations. Derivative investments can be volatile and
these investments may be less liquid than other securities, and more sensitive to the effect of varied economic conditions.
As HEDJ can have high concentrations in some issuers, the Fund can be adversely impacted by changes affecting those issuers.
EUSC focuses its investments in Europe, thereby the impact of events and developments associated with the region can adversely affect performance.
The securities of small-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price changes
than larger capitalization stocks or the stock market as a whole. EUSC uses various strategies to attempt to minimize the impact of changes
in the value of the euro against the U.S. dollar and these strategies may not be successful. Derivative investments can be volatile
and these investments may be less liquid than other securities, and more sensitive to the effect of varied economic conditions.
EUSC invests in the securities included in, or representative of, its Index regardless of their investment merit and the Fund
does not attempt to outperform its Index or take defensive positions in declining markets. Due to the investment strategy of
these Funds they may make higher capital gain distributions than other ETFs. Funds focusing their investments on certain sectors
and/or smaller companies increase their vulnerability to any single economic or regulatory development. This may result
in greater share price volatility. Please read each Fund's prospectus for specific details regarding each Fund's risk profile.
Jeremy Schwartz and Tripp Zimmerman are Registered Representatives of Foreside Fund Services, LLC.
WisdomTree Funds are distributed by Foreside Fund Services, LLC in the U.S. only.
The sources, opinions and forecasts expressed by the speakers are subject
to change and should not be considered or interpreted as a recommendation to
participate in any particular trading strategy, or deemed to be an offer or
sale of any investment product, and they should not be relied on as such.
The user of this information assumes the entire risk of any use made of
the information provided herein. Unless expressly stated otherwise the opinion,
interpretations or findings expressed herein do not necessarily represent
the views of WisdomTree or any of its affiliates.