Is WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) a Strong ETF Right Now?

Launched on 05/07/2014, the WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) is a smart beta exchange traded fund offering broad exposure to the Broad Developed World ETFs category of the market.What Are Smart Beta ETFs?Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.Fund Sponsor & IndexBecause the fund has amassed over $2.47 billion, this makes it one of the larger ETFs in the Broad Developed World ETFs. IHDG is managed by Wisdomtree. This particular fund, before fees and expenses, seeks to match the performance of the WisdomTree International Hedged Quality Dividend Growth Index.The WisdomTree International Hedged Quality Dividend Growth Index is designed to provide exposure to the developed market companies while at the same time neutralizing exposure to fluctuations between the value of foreign currencies and the U.S. dollar.Cost & Other ExpensesInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.With on par with most peer products in the space, this ETF has annual operating expenses of 0.58%.It has a 12-month trailing dividend yield of 2.17%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.Taking into account individual holdings, Bp Plc (BP/) accounts for about 5.04% of the fund's total assets, followed by Industria De Diseno Textil (ITX) and Sap Ag (SAP).The top 10 holdings account for about 34.33% of total assets under management.Performance and RiskThe ETF has lost about -11.34% so far this year and is down about -12.73% in the last one year (as of 04/09/2025). In the past 52-week period, it has traded between $38.54 and $47.51.The fund has a beta of 0.71 and standard deviation of 14.06% for the trailing three-year period, which makes IHDG a medium risk choice in this particular space. With about 268 holdings, it effectively diversifies company-specific risk.AlternativesWisdomTree International Hedged Quality Dividend Growth ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $26.89 billion in assets, Vanguard Dividend Appreciation ETF has $76.65 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.05%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WisdomTree International Hedged Quality Dividend Growth ETF (IHDG): ETF Research Reports SAP SE (SAP): Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks