International companies, from what we’ve seen, initiate dividends sooner and do so in a more flexible manner, where dividend levels relate more closely to how companies are doing. What we are currently seeing in the way of dividend yields could indicate the potential for a valutaion advantage compared to the Russell 2000 Index2:
• WisdomTree Europe SmallCap Dividend Index: 3.34%
• WisdomTree Japan SmallCap Dividend Index: 1.91%
• WisdomTree International SmallCap Dividend Index: 3.77%
• WisdomTree Emerging Markets SmallCap Dividend Index: 4.30%
1As of 5/8/15, Toyota was a 5.55% weight in the WisdomTree Japan Hedged Equity Index.
2Dividend yields measured as of 5/8/15.
Important Risks Related to this Article
Dividends are not guaranteed, and a company’s future ability to pay dividends may be limited. A company currently paying dividends may cease paying dividends at any time.
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.