International equities are finally attracting investors' attention. After a dominant 16-year stretch for U.S. stocks, many investors have overlooked meaningful exposure outside the U.S.

But with stretched U.S. valuations and concerns over an AI-driven bubble, interest abroad is being renewed. While international equities' outperformance this year is modest by historical standards, it marks a notable shift—led by traditional value sectors such as Telecoms, Utilities and Banks rather than the AI-related leadership driving U.S. markets.

Figure 1: S&P 500 vs. MSCI EAFE Cumulative Total Returns (Positive = U.S. Outperformance)

Evolving toward "True Developed" Exposure

The WisdomTree International LargeCap Dividend Fund was rebranded as the WisdomTree True Developed International Fund (DOL) on October 23, offering investors a refreshed, dividend-focused approach to developed international investing.

The underlying Index—now called the WisdomTree True Developed International Index—underwent its annual rebalance effective October 23, 2025. The rebalance incorporated new country eligibility updates that further enhance the Index's representation of today's developed markets.

Methodology Changes

The WisdomTree International LargeCap Dividend Index has been refashioned into the WisdomTree True Developed International Index, maintaining its valuation-sensitive design: all constituents must pay dividends, and weights are based on cash dividends paid.

The key change is the inclusion of Korea, Poland and Taiwan as eligible developed markets—reflecting the continued evolution and modernization of their economies and financial systems.

Figure 2: Index Methodology Change Summary

Developed Market Reclassification

The inclusion of Korea, Poland and Taiwan recognizes how each has built stronger institutions, achieved higher income levels and developed more mature financial systems. Korea and Taiwan now have gross domestic product (GDP) per capita levels similar to countries like Spain and Japan, while Poland continues to close the gap with Western Europe—well above traditional emerging-market thresholds.

Korea and Taiwan also stand out for their deep, liquid equity markets and world-class industries: Korea in semiconductors, OLED displays and smartphones, and Taiwan through TSMC's global dominance in chip manufacturing.

Across all three countries, governance and transparency have strengthened significantly. Korea's long-standing OECD membership, Poland's integration within the EU and Taiwan's AA credit rating all point to economies that increasingly look and act like developed markets.

Holdings and Sector Shifts

Following the rebalance, Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics became new top holdings, together accounting for roughly 5% of the Index's turnover. Their inclusion also helped lift the Information Technology sector's weight by about 7%.

Meanwhile, exposure to Financials decreased by roughly 5%, reflecting the sector's pre-rebalance 30% weight and the application of a 25% sector cap.

Figure 3: Top 10 Holdings

Figure 4: Sector Exposures

Country Exposures

Similar to what we saw on sector changes, we can see an increase to Taiwan (+6%) and to Korea (+2%). Poland was added at just under 0.5% collective weight.

Figure 5: Top Country Changes

Valuation and Quality Metrics

The Index now includes 324 securities, up from 300 historically, as eligible companies from the newly added countries met minimum market-cap thresholds.

The Index's post-rebalance valuation and quality metrics remain consistent.

Figure 6: WisdomTree True Developed International Index Before and After Rebalance

Rebalance Turnover

Rebalance turnover was 22%—in line with the 21%–22% range observed in recent years—underscoring the modest impact of the new country eligibility.

Figure 7: Historical Rebalance Turnover

Positioning for a New Phase of International Leadership

After years of U.S. equity dominance, developed international markets are regaining investors' attention. With a modernized country framework and the same dividend-focused discipline, the WisdomTree True Developed International Index offers a timely way to capture this new phase of global market leadership.