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.
August 12, 2014
Japan has been underperforming for the first half of 2014. So, why are we still
bullish on it? Find out in our latest Japan podcast.
Director of Research
Associate Director of Research
Past performance is not indicative of future results. 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
Hedge: Apply strategies meant to mitigate the impact of currency movements on equity
Deflation: The opposite of inflation, characterized by falling price levels.
Abenomics: Series of policies enacted after the election of Japanese Prime Minister
Shinzo Abe on December 16, 2012 aimed at stimulating Japan's economic growth.
Japan balance sheet expansion source: Bank of Japan. "Introduction of the 'Quantitative
and Qualitative Monetary Easing'." April 4, 2013.
"ETFs": Exchange-traded funds
Consumption tax: Tax applied to spending on goods and services.
Japan real estate investment trusts (J-REITs): Investment structure containing a
basket of different exposures to real estate, be it directly in properties or in
mortgages traded on the Tokyo Stock Exchange. Returns predominantly relate to changes
in property values and income from rental payments.
Risk premium: Equity investments are not risk free, but it is thought that investors
buy stocks because the returns they expect are high enough to allow them to take
Buyback: When a company uses its own cash to purchase its own outstanding shares;
may positively impact the share price.
JPX-Nikkei Index 400: Index of Japanese equity performance focused on constituents
that are improving their profitability and corporate governance. Companies listed
on the Tokyo Stock Exchange are screened for these criteria annually and the top
400 qualify as constituents.
Return on Equity (ROE): Measures a corporation's profitability by revealing how
much profit a company generates with the money shareholders have invested.
DXJ – WisdomTree Japan Hedged
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.
DXJS – WisdomTree Japan
Hedged SmallCap Equity Fund
WisdomTree Japan sector funds:
WisdomTree Japan Hedged Financials Fund (DXJF), WisdomTree Japan Hedged Real Estate Fund (DXJR), WisdomTree Japan Hedged Capital Goods Fund (DXJC),
WisdomTree Japan Hedged
Health Care Fund (DXJH),
WisdomTree Japan Hedged Tech, Media and Telecom Fund (DXJT)
MSCI Japan Index: A market cap-weighted subset of the MSCI EAFE Index that measures
the performance of the Japanese equity market.
U.S. treasury growth expectations from Bloomberg, looking from 12/31/13 to 7/21/14.
Value: Characterized by lower price levels relative to fundamentals, such as earnings
or dividends. Prices are lower because investors are less certain of the performance
of these fundamentals in the future.
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.
U.S. and Europe P/E ratio data from Bloomberg, with data as of 7/18/14.
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. 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. The
Funds focus their investments in Japan, thereby increasing the impact of events
and developments in Japan that can adversely affect performance. Investments in
currency involve additional special risks, such as credit risk, interest rate fluctuations,
derivative investments which can be volatile and may be less liquid than other securities,
and more sensitive to the effect of varied economic conditions. As this Fund can
have a high concentration in some issuers, the Fund can be adversely impacted by
changes affecting those issuers. 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.
Jeremy Schwartz and Christopher Gannatti 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 investment strategists 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