How WisdomTree Grows Portfolios with Dividends

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.

We continue our examination of various exchange-traded fund (ETF) providers today by taking a look at WisdomTree. WisdomTree entered the ETF market in 2006 and is currently the fifth-largest provider of ETFs, with 62 funds.

WisdomTree’s unique value to investors is that it offers an alternative method for weighting its funds. Many ETFs follow a market-capitalization strategy, i.e. the proportion that a fund holds of its various equities reflects the ratio of those equities to each other in the stock market.

Instead of weighting its investments that way, WisdomTree looks at fundamentals in constructing its funds. WisdomTree offers two proprietary weighting systems: the Earning Stream method and the Dividend stream method. The company’s analysts have taken note, as have we, that higher and more consistent dividends are an objective indication of companies that give higher returns.

One such fund is the WisdomTree Europe SmallCap Dividend Fund (DFE). This fund has managed to retain value in the first two tumultuous months of 2014, with a year-to-date return of 0.22%. Last year’s performance featured a market-beating 40.85% return. For investors interested in additional income, the current yield is 2.39%.

DFE_030514

In addition to equity ETFs, WisdomTree features alternative investments and currency ETFs, offering global diversity for your portfolio.

If you’re interested in investing with a focus on fundamentals, as opposed to the tumultuous fashions of stock prices, WisdomTree offers you that chance in the transparent and economical form of ETFs.

If you want my advice about buying and selling specific ETFs, including appropriate stop losses, please consider subscribing to my Successful Investing newsletter. As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an e-mail. You just may see your question answered in a future ETF Talk.

Exclusive  How You Can Explore Actively Managed ETFs with These 3 Providers

In case you missed them, I encourage you to read my articles from previous weeks about ETF providers First Trust, ProShares,  Vanguard, iShares and State Street. I also invite you to share your thoughts below.

previous article

A huge down month for stocks in January was followed by a big rebound in February, and now it’s March, and the first two trading days of the month were reminiscent of the first two months.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE