With nearly $44 billion in assets under management, WisdomTree Investments, Inc. (NASDAQ:WETF) is the seventh-largest U.S. issuer of exchange-traded funds (ETFs). Many investors know WisdomTree, the only publicly traded pure play ETF issuer, for its expansive lineup of currency hedged and international equity funds.
However, some of the best WisdomTree ETFs are dividend funds focusing on U.S. and developed market equities.
That said, WisdomTree, an issuer that has been at the forefront of fundamentally weighted or smart beta strategies for over a decade, was also one of the pioneers of bringing dividends to emerging markets ETFs.
At a time when international equities, both developed and emerging markets fare, are outpacing U.S. equity benchmarks, WisdomTree is an issuer for ETF investors to consider. That is particularly true for investors yearning for some dividend compensation to go along with their international ETFs.
Here are some of the best WisdomTree ETFs income-seeking, globe-trotting investors can consider for the rest of 2017 and beyond.
Best WisdomTree ETFs to Buy: WisdomTree Emerging Markets SmallCap Dividend Fund (DGS)
Expense Ratio: 0.63%, or $63 annually per every $10,000 invested
This year, investors are hearing quite a bit about the laggard status of U.S. small-caps. The operative words in that statement are “U.S. small-caps,” because international smaller stocks are surging. Just look at the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSEARCA:DGS), which is proving to be one of the best WisdomTree ETFs this year.
Year-to-date, this WisdomTree ETF is up 20.6%, a better than 10-to-1 advantage over the widely followed Russell 2000 Index. Making DGS all the more compelling are the following traits: A higher dividend yield than major U.S. small-cap benchmarks, less volatility than U.S. rivals and the MSCI Emerging Markets Index and lower valuations than comparable U.S. small-cap funds.
This WisdomTree has a growth feel to it with nearly a third of its weight allocated to technology and consumer discretionary stocks. Taiwan, China and Thailand combine for almost half of the DGS geographic lineup. DGS would need to gain another 17% to get back to its all-time high set more than six years ago.
Best WisdomTree ETFs to Buy: WisdomTree U.S. Quality Dividend Growth Fund (DGRW)
Expense Ratio: 0.28%
While many of the best WisdomTree ETFs are international funds, that does not mean the issuer is short on notable domestic options. Quite the contrary. WisdomTree offers an array of dividend-oriented U.S. ETFs, among other domestic funds, many of which have lengthy track records of outperforming rival dividend strategies.
WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) breaks from pack of prosaic U.S. dividend ETFs in that it does not focus on dividend increase streaks. That has allowed this WisdomTree ETF to feature Apple Inc. (NASDAQ:AAPL), as just one example, before many rival U.S. dividend ETFs. Today, DGRW’s 20.7% weight to the technology sector — recently a bastion of dividend growth — is among the largest found at any dividend fund.
DGRW’s performance solidifies its status as one of the best WisdomTree ETFs. Since coming to market in May 2013, this WisdomTree ETF has outperformed each of the four largest U.S. dividend ETFs by wide margins while topping the largest member of that quartet by over 1,300 basis points. Over that period, DGRW’s annualized volatility has been mostly inline with that of its rivals, indicating it has been the superior choice on a risk-adjusted basis.
Best WisdomTree ETFs to Buy: WisdomTree International LargeCap Dividend Fund (DOL)
Expense Ratio: 0.48%
The WisdomTree International LargeCap Dividend Fund (NYSEARCA:DOL) is an example of a WisdomTree ETF that is at the right place at the right time as U.S. investors are flocking to diversified ex-U.S. developed markets funds this year.
DOL makes for an attractive, dividend-oriented alternative to traditional MSCI EAFE strategies. This WisdomTree ETF has a track record of over 11 years, yields over 3% and holds developed markets dividend-paying companies from markets outside the U.S. and Canada. DOL’s nearly 270 holdings are weighted based on annual cash dividends paid, a methodology that helps ensure sustainability of current and future payouts.
The U.K., Japan and France combine for almost 47% of DOL’s geographic weight. This WisdomTree ETF devotes over 24% of its sector weight to financial services stocks with consumer staples, energy and telecom names combining for a third of its weight. YTD, DOL is performing mostly inline with the MSCI EAFE Index.
As of this writing, Todd Shriber owned shares of DGRW.