WisdomTree International LargeCap Dividend Fund (AMEX:DOL) has been one of the most popular exchange-traded funds (ETFs) among investors seeking exposure to large-cap international dividend-paying stocks. In the third quarter of 2021, the fund showed strong performance, outpacing both its benchmark index and the broader market. This article provides an overview of the recent performance of AMEX:DOL and predictions for its future performance.
Overview of AMEX:DOL
WisdomTree International LargeCap Dividend Fund (AMEX:DOL) seeks to track the performance of the WisdomTree International LargeCap Dividend Index, which is composed of dividend-paying companies in developed markets outside the United States. The fund holds over 300 stocks from countries such as Japan, the UK, Canada, and Australia. The index is weighted by dividend yield, with higher-yielding stocks receiving a larger weight.
Recent Performance of AMEX:DOL
In the third quarter of 2021, AMEX:DOL showed strong performance, returning 4.75%, outpacing its benchmark index, the MSCI EAFE Index, which returned 3.71%. The fund also outperformed the S&P 500 Index, which returned 0.58% during the same period. This strong performance was driven by several factors, including the fund's exposure to high-yielding stocks in the financial and healthcare sectors, as well as its underweighting in the energy sector, which has faced headwinds due to concerns over climate change and the shift towards renewable energy.
Predictions for Future Performance of AMEX:DOL
Looking ahead, there are several factors that could impact the future performance of AMEX:DOL. One key factor is the ongoing COVID-19 pandemic and its impact on the global economy. While there are signs of economic recovery, there is still a great deal of uncertainty, particularly around the potential for new variants of the virus to emerge. Another factor is the potential for inflation to rise, which could impact the performance of dividend-paying stocks.
Despite these risks, there are several reasons to be optimistic about the future performance of AMEX:DOL. One is the ongoing shift towards renewable energy, which could benefit the fund's underweighting in the energy sector. Another is the potential for increased government spending on infrastructure and other stimulus measures, which could boost the economies of many of the countries represented in the fund. Finally, the ongoing trend towards globalization and increased trade could benefit the fund's exposure to international stocks.
Conclusion
WisdomTree International LargeCap Dividend Fund (AMEX:DOL) has shown strong performance in the third quarter of 2021, outpacing its benchmark index and the broader market. While there are risks to future performance, there are also reasons to be optimistic, including the ongoing shift towards renewable energy, increased government spending on infrastructure, and the trend towards globalization. Overall, for investors seeking exposure to large-cap international dividend-paying stocks, AMEX:DOL remains a solid choice.
Ticker: AMEX:DOL
