Advisors and investors are looking far and wide for income opportunities and portfolio hedges in a challenging environment of rising rates and persistent inflation. The focus on portfolio hedging and income opportunities through dividend funds are apparent in WisdomTree’s top four funds by inflows for June, with hedging for a rising rate environment leading the charge by quite a bit.
- The WisdomTree Floating Rate Treasury Fund (USFR) continues to be a huge draw for advisors and investors, bringing in over $1 billion in inflows in June and nearly $5 billion in inflows YTD. The fund capitalizes on the use of floating-rate notes by the U.S. Treasury and can be an excellent option for investors looking to limit their amount of credit risk but still capture higher yield potentials in rising rate environments. USFR carries an expense ratio of 0.15%.
- The WisdomTree U.S. LargeCap Dividend Fund (DLN) offers investors seeking dividend-paying companies exposure to the core U.S. large-cap equity securities. It brought in $105.33 million in June. It’s a fund that can be used to either replace or complement a large-cap value or dividend strategy and seeks to track the 300 biggest companies by market cap and dividend weights based on projected dividends over the upcoming year. DLN has an expense ratio of 0.28%.
- The WisdomTree Japan Hedged Equity Fund (DXJ) offers investment into the Japanese equity market while hedging for currency fluctuations. DXJ had net inflows of $84.04 million as investors seek to capitalize on the weakening yen and the opportunities it will provide for industries within Japan. It’s a pure play on Japanese stocks, as it removes the impact that the yen’s value has while still offering exposure to Japan’s equities. It is a popular choice when the yen is weak relative to the U.S. dollar. DXJ carries an expense ratio of 0.48%
- The WisdomTree U.S. High Dividend Fund (DHS) had $61.63 million in inflows in March and invests in high dividend-yielding U.S. equity companies. It seeks to track the WisdomTree U.S. High Dividend Index. The index contains the top 30% of companies by dividend yield from the WisdomTree U.S. Dividend Index, and the index is dividend-weighted based on projected dividends for the next year. DHS has an expense ratio of 0.38%.
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