DFE allocates just over a quarter of its weight to industrial stocks while consumer discretionary and financial services names combine for about a third of the ETF’s weight. The consumer staples and real estate sectors combine for almost 16%. DFE can be combined with a large-cap strategy such as the WisdomTree Europe Hedged Equity Fund (NYSEArca: HEDJ) to reduce correlations and volatility.
“In addition to the lower volatility benefits of both dividend weighting and currency hedging for the respective funds, HEDJ and DFE had only a modest correlation to each other (0.63), which helped to further reduce the volatility of the hypothetical blend,” according to WisdomTree.
DFE’s largest geographic weights are the U.K., Sweden and Italy, which combine for about half the fund’s weight.
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