With money flowing and pivoting within markets as volatility continued in January, many investors sought hedges, havens, and diversification with their investments. The following are the top five ETFs by flows for WisdomTree in the month of January.
- The WisdomTree Japan Hedged Equity Fund (DXJ) brought in the most flows of the WisdomTree funds for January at $166.79 million. The fund offers investment into the Japanese equity market while hedging for currency fluctuations. 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, and it is a popular choice when the yen is weak relative to the U.S. dollar.
- The Wisdomtree Global ex-U.S. Quality Dividend Growth Fund (DNL) was second for inflows in January, bringing in $101.48 million in flows. DNL utilizes a methodology that selects dividend-paying companies based on growth of earnings and revenue metrics for developed and emerging markets outside of the U.S. It’s a core allocation that diversifies exposures internationally for portfolios.
- The WisdomTree U.S. Efficient Core Fund (NTSX) experienced $75 million in inflows in January. NTSX is an ETF that invests in both large-cap U.S. equities and U.S. Treasury futures contracts. The bond futures provide diversification for the fund while also offering the potential of less volatility, and the fund can help increase capital efficiency.
- The WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) experienced $58.52 million in flows last month. DGS offers exposure to small-cap equities within emerging markets, which can be a pure-play approach to investing in a specific regional economy. The small-cap companies also better reflect local consumption and offer diversified exposure within international investing.
- The WisdomTree International Quality Dividend Growth Fund (IQDG) brought in $51.13 million in flows in January. The ETF seeks to track the investment results of dividend-paying growth-oriented companies in developed markets, but excludes the U.S. and Canada. Companies included are screened for quality and growth, and IQDG can be a good solution for investors seeking income with a focus on growth potential.
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