WisdomTree, begun trading 2 new ETFs, the WisdomTree Emerging Markets Dividend Fund (BATS: DVEM) and the WisdomTree International Quality Dividend Growth Fund (BATS: IQDG) on Thursday, April 7, 2016. Here is a synopsis of the new ETFs:
1.
FUND INFORMATION:
| Symbol: DVEM | Exchange: BATS |
| Name: WisdomTree Emerging Markets Dividend Fund | Net Expense Ratio: 0.32% |
FUND OBJECTIVE:
The WisdomTree Emerging Markets Dividend Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Emerging Markets Dividend Index.
REFERENCE INDEX:
The WisdomTree Emerging Markets Dividend Index is a dividend weighted index that consists of emerging market dividend-paying common stocks. The starting universe of the Index consists of equity securities of companies that meet the following eligibility requirements:
(i) incorporated (and/or domiciled with respect to China) within one of 17 emerging market nations (Brazil, Chile, China, Czech Republic, Hungary, India, Indonesia, Korea, Malaysia, Mexico, the Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey);
(ii) listed for trading on a major stock exchange in one of the aforementioned emerging market countries (except Chinese companies must have shares listed in Hong Kong);
(iii) payment of at least $5 million in cash dividends on shares of common stock in the annual cycle prior to the annual Index screening date;
(iv) market capitalization of at least $200 million as of the Index screening date;
(v) average daily dollar trading volume of at least $200,000 for each of the six months preceding the Index screening date; and
(vi) trading of at least 250,000 shares per month for each of the six months preceding the Index screening date.
Securities are weighted in the Index based on dividends paid over the prior annual cycle. Companies that pay a greater total dollar amount of dividends are more heavily weighted. To derive a company’s initial Index weight, (i) multiply the U.S. dollar value of the company’s annual gross dividend per share by the number of common shares outstanding for that company (Cash Dividend Factor); (ii) calculate the Cash Dividend Factor for each company; (iii) add together all of the companies’ Cash Dividend Factors; and (iv) divide the company’s Cash Dividend Factor by the sum of all Cash Dividend Factors. At the time of the Index’s annual screening date, the maximum weight of any one sector and any one country in the Index is capped at 25%. In response to market conditions and/or the application of volume factor adjustments, as discussed below, sector and country weights may fluctuate above the specified cap between annual Index screening dates.
In addition, the Index methodology includes volume factor adjustments such that if a component security does not meet certain trading volume thresholds, the security will either be eliminated from inclusion in the Index or its weight in the Index will be reduced and reallocated pro rata among the other securities.
Fund’s Top 10 Holdings (04/15/16):
| China Mobile Ltd | 3.83% |
| China Construction Bank Corp | 3.64% |
| Taiwan Semiconductor Manufacturing Co Ltd | 2.69% |
| Ambev S.A. | 2.03% |
| CNOOC Ltd | 1.76% |
| Samsung Electronics Co Ltd | 1.72% |
| Gazprom OAO | 1.57% |
| IPATH MSCI India Index ETN | 1.49% |
| Lukoil PJSC ADR | 1.40% |
| MMC Norilsk Nickel PJSC-ADR | 1.34% |
Fund’s Country Allocation (04/15/16):
| Taiwan | 16.93% |
| China | 13.27% |
| Hong Kong | 9.30% |
| Brazil | 8.76% |
| Russia | 8.25% |
| South Korea | 7.82% |
| South Africa | 5.52% |
| Malaysia | 5.39% |
| Thailand | 5.24% |
| Mexico | 3.70% |
Fund’s Sector Breakdown (04/15/16):
| Financials | 24.21% |
| Information Technology | 13.38% |
| Telecommunication Services | 12.62% |
| Energy | 10.70% |
| Materials | 9.83% |
| Consumer Staples | 8.84% |
| Consumer Discretionary | 6.64% |
| Industrials | 6.29% |
| Utilities | 5.13% |
Useful Links:
DVEM Home Page
Category: Equities> Emerging Equity Markets> EM Dividend/Income
2.
FUND INFORMATION:
| Symbol: IQDG | Exchange: BATS |
| Name: WisdomTree International Quality Dividend Growth Fund | Net Expense Ratio: 0.38% |
FUND OBJECTIVE:
The WisdomTree International Quality Dividend Growth Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree International Quality Dividend Growth Index.
REFERENCE INDEX:
The WisdomTree International Quality Dividend Growth Index consists of dividend-paying common stocks with growth characteristics of companies in the industrialized world, excluding Canada and the United States. The Index is generally comprised of the 300 companies in the WisdomTree International Equity Index with the best combined rank of certain growth and quality factors: specifically long-term earnings growth expectations, return on equity, and return on assets.
The WisdomTree International Equity Index is a fundamentally weighted index that is comprised of dividend-paying companies that pay regular cash dividends.
To be eligible for inclusion in the WisdomTree International Equity Index a company must be incorporated in and list its shares on the major stock exchange in one of 15 developed European countries (Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, or the United Kingdom), Israel, Japan, Australia, New Zealand, Hong Kong, or Singapore. Currently a significant portion of the Index is comprised of companies organized in the United Kingdom, although this may change from time to time.
To be eligible for inclusion in the Index, a company must meet the following criteria: (i) payment of at least $5 million in cash dividends on common shares in the annual cycle prior to the annual Index screening date; (ii) market capitalization of at least $1 billion as of the Index screening date; (iii) an earnings yield that is greater than its dividend yield; (iv) average daily dollar trading volume of at least $100,000 for the three months preceding the Index screening date; and (v) trading of at least 250,000 shares per month for each of the six months preceding the Index screening date. Eligible companies are ranked according to a rules-based calculation based on the following three factors, weighted as follows: long-term earnings growth expectations (50%), the historical three-year average return on equity (25%), and the historical three-year average return on assets (25%). The top 300 ranked companies are selected for inclusion in the Index.
Securities are weighted in the Index based on dividends paid over the prior annual cycle. Companies that pay a greater total dollar amount of dividends are more heavily weighted. To derive a company’s initial Index weight, (i) multiply the U.S. dollar value of the company’s annual gross dividend per share by the number of common shares outstanding for that company (Cash Dividend Factor); (ii) calculate the Cash Dividend Factor for each company; (iii) add together all of the companies’ Cash Dividend Factors; and (iv) divide the company’s Cash Dividend Factor by the sum of all Cash Dividend Factors. At the time of the Index’s annual screening date, the maximum weight of any security in the Index is capped at 5% and the maximum weight of any one sector or country in the Index is capped at 20%; however, security, sector and country weights may fluctuate above their specified caps in response to market conditions and/or the application of volume factor adjustments, as described below. In addition, the Index methodology includes volume factor adjustments such that if a component security does not meet certain trading volume thresholds, the security will either be eliminated from inclusion in the Index or its weight in the Index will be reduced and reallocated pro rata among the other securities.
Fund’s Top 10 Holdings (04/15/16):
| British American Tobacco PLC | 5.28% |
| Roche Holding AG | 4.88% |
| Telstra Corp Ltd | 3.80% |
| Unilever NV | 3.43% |
| Japan Tobacco Inc | 3.10% |
| Novo Nordisk A/S | 2.97% |
| Unilever PLC | 2.73% |
| Sap AG | 2.52% |
| Reckitt Benckiser Group PLC | 2.50% |
| KDDI Corp | 2.40% |
Fund’s Country Allocation (04/15/16):
| United Kingdom | 19.19% |
| Japan | 14.36% |
| Switzerland | 10.08% |
| Germany | 6.96% |
| Netherlands | 6.92% |
| Australia | 6.70% |
| Sweden | 6.66% |
| France | 6.64% |
| Hong Kong | 4.93% |
| Denmark | 4.33% |
Fund’s Sector Breakdown (04/15/16):
| Consumer Staples | 22.68% |
| Consumer Discretionary | 18.51% |
| Industrials | 16.34% |
| Health Care | 13.92% |
| Telecommunication Services | 9.87% |
| Information Technology | 8.09% |
| Financials | 5.38% |
| Materials | 3.48% |
| Utilities | 1.63% |
Useful Links:
IQDG Home Page
Category: Equities> International Equities> International Dividends