o It’s also worth noting that the most “defensively positioned” index is the WT International Dividend ex-Financials Index. We’ll be examining this Index more closely in a future blog post, but suffice it to say that as defensive sectors, such as Utilities, have tended to outperform in 2014, this Index has definitely benefitted.
Shifting the Developed International Investment Paradigm
In U.S. markets, there is a lot of stratification—people will think in terms of large cap versus small cap or value versus growth. However, in developed international equities, the focus is primarily on the MSCI EAFE Index. Newer indexes, such as the MSCI EAFE IMI Index, look to be more representative of the total market opportunity—inclusive of mid-cap and small-cap stocks. But WisdomTree has been providing options inclusive of all developed international dividend payers since June 1, 2006. In two subsequent blog posts, we will examine our International SmallCap Dividend and International Dividend ex-Financials Indexes in greater detail.
1Refers to the S&P 500 Index, which has periodically achieved record highs from 12/31/13 to 5/31/14.
2Refers to the MSCI Emerging Markets Index for the period from 12/31/13 to 5/31/14.
3Source: Bloomberg, as of 5/31/14.
Important Risks Related to this Article
Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Investments focusing on certain sectors and/or smaller companies increase their vulnerability to any single economic or regulatory development. Investments focused in Europe are increasing the impact of events and developments associated with the region, which can adversely affect performance.Investments focused in Japan are increasing the impact of events and developments associated with the region, which can adversely affect performance.