DBU also offers some exposure to an improving economy across the Atlantic as five European nations are found among the ETF’s top-10 country weights. All told, Eurozone nations account for nearly a third of DBU’s weight and that does not include the fund’s exposure to the U.K. or Emerging Europe.
DBU’s index, the WisdomTree Global ex-US Utilities Index, has annualized volatility of just 15% since inception just over two years ago. That is higher than what investors are accustomed to with U.S. utilities ETFs. Still, DBU compensates for the risk with an important element to its index construction: DBU components are weighted by yield, not market cap. The result is a 30-day SEC of 5.05%, more than 100 basis points higher than XLU’s.
WisdomTree Global ex-US Utilities Fund
ETF Trends editorial team contributed to this post.