The end of the year is often when advisors check in on their overall asset allocation plan, looking at market conditions to determine what headwinds and tailwinds might require some adjustments.
In the upcoming webcast, WisdomTree 2022 Outlook, WisdomTree’s Scott Welch, CIO, Model Portfolios; Kevin Flanagan, head of fixed income strategy; and Jeff Weniger, head of equity strategy, will provide an update on the current economic cycle and highlight key macro themes that financial advisors can consider to help their clients better adapt to the changes ahead.
For example, investors looking to diversify with international exposure to consider something like the WisdomTree International Quality Dividend Growth Fund (CBOE: IQDG), which taps into that theme while providing investors with high-quality international exposure.
IQDG follows the WisdomTree International Quality Dividend Growth Index (WTIDG), which isn’t any old developed markets benchmark. Rather, IQDG’s underlying index emphasizes favorable traits, such as impressive earnings growth prospects and profitability, with the idea being that those characteristics can be signals of encouraging dividend growth trends.
Additionally, the WisdomTree Emerging Markets ex-State-Owned Enterprises ETF (XSOE) is a valid consideration for exposure to developing economies. The WisdomTree Emerging Markets ex-State-Owned Enterprises Index (EMXSOE), XSOE’s underlying index, is correlated to the MSCI Emerging Markets Index, but the WisdomTree fund delivers exposure to developing economies without the burden of state-level interference, which is something that’s historically worked against investors.
For fixed income exposure, the WisdomTree Bloomberg Floating Rate Treasury Fund (NYSEArca: USFR), which debuted in February 2014, follows the Bloomberg U.S. Treasury Floating Rate Bond Index. The fund’s holdings are priced at a spread over three-month Treasury bills.
Floating rate notes, like the name suggests, have a floating interest rate. Specifically, the notes have a so-called reset period with interest rates tied to a benchmark, such as the Fed funds, LIBOR, prime rate, or U.S. Treasury bill rate. Due to their short reset periods, these floating rate funds have relatively low rate risk.
Financial advisors who are interested in learning more about WisdomTree’s 2022 outlook can register for the Tuesday, December 14 webcast here.
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