IQDG ETF

While the S&P 500 set an impressive pace in the first quarter, gaining 10.4%, some ex-U.S. developed markets benchmarks showed signs of life. For example, the widely followed MSCI EAFE Index gained 6% in the first three months of 2024.

WisdomTree International Quality Dividend Growth Fund selects ex-North America dividend stocks with quality and expected earnings growth characteristics. The fund is well-diversified across countries, sectors, and holdings, with a focus on Europe. IQDG has outperformed at least four close competitors in 2023 and has the best 5-year dividend growth rate in its group.

IQDG offers exposure to developed-world dividend-paying companies that passed the quality and growth tests; there is a dividend sustainability ingredient as well. USD pessimists on the lookout for steady, durable, and consistent dividend income from overseas issuers would probably find IQDG's equity mix alluring. However, its outperformance is far from certain; IQDG had systematically underperformed the U.S. market in the past, partly because of FX headwinds.

International stocks and the related exchange traded funds have accumulated bum reputations after lengthy spells of underperforming domestic equivalents. As such, many investors are quick to dismiss ex-US opportunities, amplifying long-running home country biases.

WisdomTree International Quality Dividend Growth Fund holds global dividend stocks with quality and growth characteristics. It is well-diversified across countries and sectors, but it is quite concentrated in the top holdings.