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.
Below you will find links to our latest whitepapers, investment cases and current research.
You can also read economic and market commentary from our thought leaders and connect with us on social media.
April 7, 2016
If dividends aren’t the first thing you think of with emerging markets, perhaps
you should listen to our Emerging Markets Dividend Podcast.
Associate Director of Research
WisdomTree Emerging Markets Dividend Fund
MSCI Emerging Markets Index: a broad market cap-weighted Index showing performance
of equities across 23 emerging market countries defined as “emerging markets” by
WisdomTree SmallCap Dividend Index: A fundamentally weighted index measuring the
performance of the small-capitalization segment of the U.S. dividend-paying market.
The Index comprises the companies that constitute the bottom 25% of the market capitalization
of the WisdomTree Dividend Index after the 300 largest companies have been removed.
The Index is dividend weighted annually to reflect the proportionate share of the
aggregate cash dividends each component company is projected to pay in the coming
year, based on the most recently declared dividend per share.
Yield: The income return on an investment. Refers to the interest or dividends received
from a security that is typically expressed annually as a percentage of the market
or face value.
WisdomTree Emerging Markets Dividend Index: A cash dividend-weighted Index measuring
the performance of dividend-paying equities incorporated within emerging markets.
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.
Yield premium: the additional amount of income investors require for holding a security.
WisdomTree Emerging Markets High Dividend Index: A subset of the WisdomTree
Emerging Markets Dividend Index measuring the performance of the higher-yielding
stocks as measured by trailing 12-month dividend yields, weighted by cash dividends.
WisdomTree Emerging Markets SmallCap Dividend Index: A subset of the WisdomTree
Emerging Markets Dividend Index measuring the performance of the smallest firms
by market capitalization weighted by cash dividends.
WisdomTree Emerging Markets Dividend Growth Index: A fundamentally weighted index
designed to track the performance of dividend-paying emerging market companies that
WisdomTree believes have the potential to increase their dividends due to certain
factors, which include estimated earnings growth, return on equity and return on
assets. Weighting is by trailing 12-month cash dividends.
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.
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.
Rebalance: An index is created by applying a certain set of selection and weighting
rules at a certain frequency. WisdomTree rebalances, or re-applies its rules based
selection and weighting process on an annual basis.
Correlation: Statistical measure of how two sets of returns move in relation to
each other. Correlation coefficients range from -1 to 1.
You cannot invest directly in an index. Dividends are not guaranteed and a company’s
future abilities to pay dividends may be limited. A company currently paying dividends
may cease paying dividends at any time. Diversification does not eliminate the risk
of experiencing investment losses.
The information provided to you herein represents the opinions of Christopher Gannatti
and Tripp Zimmerman, which are subject to change and should not to 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 it should not be
relied on as such. Unless expressly stated otherwise, the opinions, interpretations
or findings expressed herein do not necessarily represent the views of WisdomTree
or any of its affiliates.
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, please call 1-866-909-WISE (9473)
or click here to view or download a prospectus
online. Read the prospectus carefully before you invest. There are risks involved
with investing including the possible loss of principal. Past performance does not
guarantee future results.
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. Fund's focusing on a single sector generally
experience greater price volatility. Investments in emerging, offshore or frontier
markets are generally less liquid and less efficient than developed markets and
are subject to additional risks, such as of adverse governmental regulation, intervention
and political developments. Due to the investment strategy of this Fund it may make
higher capital gain distributions than other ETFs. Please read the Fund's prospectus
for specific details regarding the Fund's risk profile.
Christopher Gannatti 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.