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Is WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) a Strong ETF Right Now?
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Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the WisdomTree International Hedged Quality Dividend Growth ETF (IHDG - Free Report) is a smart beta exchange traded fund launched on 05/07/2014.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Wisdomtree. It has amassed assets over $2.65 billion, making it one of the larger ETFs in the Broad Developed World ETFs. IHDG seeks to match the performance of the WisdomTree International Hedged Quality Dividend Growth Index before fees and expenses.
The WisdomTree International Hedged Quality Dividend Growth Index is designed to provide exposure to the developed market companies while at the same time neutralizing exposure to fluctuations between the value of foreign currencies and the U.S. dollar.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.58% for IHDG, making it on par with most peer products in the space.
IHDG's 12-month trailing dividend yield is 1.65%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Lvmh Moet Hennessy Louis Vuitton Se (MC - Free Report) accounts for about 4.99% of the fund's total assets, followed by Industria De Diseno Textil (ITX) and Asml Holding Nv (ASML - Free Report) .
The top 10 holdings account for about 33.76% of total assets under management.
Performance and Risk
So far this year, IHDG return is roughly 10.61%, and was up about 18.85% in the last one year (as of 05/27/2024). During this past 52-week period, the fund has traded between $37.18 and $46.46.
IHDG has a beta of 0.73 and standard deviation of 14.07% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 492 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree International Hedged Quality Dividend Growth ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core Dividend Growth ETF (DGRO - Free Report) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG - Free Report) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $27.21 billion in assets, Vanguard Dividend Appreciation ETF has $78.41 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) a Strong ETF Right Now?
Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the WisdomTree International Hedged Quality Dividend Growth ETF (IHDG - Free Report) is a smart beta exchange traded fund launched on 05/07/2014.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Wisdomtree. It has amassed assets over $2.65 billion, making it one of the larger ETFs in the Broad Developed World ETFs. IHDG seeks to match the performance of the WisdomTree International Hedged Quality Dividend Growth Index before fees and expenses.
The WisdomTree International Hedged Quality Dividend Growth Index is designed to provide exposure to the developed market companies while at the same time neutralizing exposure to fluctuations between the value of foreign currencies and the U.S. dollar.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.58% for IHDG, making it on par with most peer products in the space.
IHDG's 12-month trailing dividend yield is 1.65%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Lvmh Moet Hennessy Louis Vuitton Se (MC - Free Report) accounts for about 4.99% of the fund's total assets, followed by Industria De Diseno Textil (ITX) and Asml Holding Nv (ASML - Free Report) .
The top 10 holdings account for about 33.76% of total assets under management.
Performance and Risk
So far this year, IHDG return is roughly 10.61%, and was up about 18.85% in the last one year (as of 05/27/2024). During this past 52-week period, the fund has traded between $37.18 and $46.46.
IHDG has a beta of 0.73 and standard deviation of 14.07% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 492 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree International Hedged Quality Dividend Growth ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core Dividend Growth ETF (DGRO - Free Report) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG - Free Report) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $27.21 billion in assets, Vanguard Dividend Appreciation ETF has $78.41 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.