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.
Chief Investment Strategist
A little more than a decade ago, WisdomTree launched its first 20 exchange-traded funds (ETFs) on the New York Stock Exchange (NYSE). The launch was historic because it represented, at that time, the largest listing by a single issuer in the 200-year history of the NYSE.
A Discussion With: Scott Callon, Chairman Of Ichigo, Chris Konstantinos, International Portfolio Manager At Riverfront Investment Group And Jesper Koll, CEO Of WisdomTree Japan.
We suggest that an intuitive framework for future return expectations could be looking to dividends and share buybacks, whose components often are referred to as shareholder yield and are, we believe, important components of total returns.
Today, The Bank of Japan (BOJ) Policy Board devided to stay the course and did not add new monetary stimulus, with the exception of a new marginal lending facility for banks in the area of the recent earthquake.
We believe one of the supporting points for equities, especially small- and mid-caps, during the last few years has been the income advantage they provide compared to the traditionally low yields of fixed income securities. With yields around the world under pressure in the face of continued monetary easing, this distinction is becoming ever more germane.
Japan's Risk Assets-real estate and equities-remain on track for a multiyear structural bull market. The current sharp downfall in equities-today TOPIX was down nearly 25% from its recent high of six months ago(August 14, 2015)- is primarily cyclical, in our view, with both domestic and global down-cycles combining to force a "crashtest" of our bullish-Japan thesis. If we are right and this is merely a cyclical problem, the next business-cycle up-turn should start to come into sight by this summer.
On January 28 and 29, Governor Haruhiko Kuroda will chair the next policy board meeting of the Bank of Japan (BOJ).
Each year, the rebalancing process refreshes the constituent weights of WisdomTree Indexes, moving them back toward a measure of relative value. The Global Dividend Index rebalance has refreshed constituents and reweighted securities across various indexes, to emphasize weights for those companies that have grown their dividends compared to their prices over the prior year.
The India Earnings Index rebalance has refreshed its constituents and reweighted securities to emphasize weights for those companies that have grown their earnings compared to their prices over the prior 12 months. Despite the volatility of emerging market equities, for investors who share our belief in India’s long-term growth prospects, we think this recent rebalance could be an entry point.
There is a reason people always say to buy quality. In furnishings and retail goods, you tend to get what you pay for, and higher-quality goods, though they may cost more up front, last longer and ultimately may provide a better value down the road. These lessons can be applied to investing as well. Focusing on quality characteristics may actually lead to outperformance. And while it may not sound as familiar as focusing on growth or value, it is, in fact, the cornerstone of many investment approaches, including that of Warren Buffett.
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.
You cannot invest directly in an index.
There are risks associated with investing, including possible loss of principal. Foreign investing involves currency, political and economic risk. Funds focusing on a single country, sector and/or funds that emphasize investments in smaller companies may experience greater price volatility. Investments in emerging markets, real estate, currency, fixed income and alternative investments include additional risks. Due to the investment strategy of certain Funds, they may make higher capital gain distributions than other ETFs. Please see prospectus for discussion of risks.
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.