International equities and related ETFs are rightfully commanding significant fanfare this year. That’s because advisors and retail investors are flocking to stocks and funds that long lagged domestic equivalents. Whether it’s in the essence of adding geographic diversity or simply riding momentum, market participants are being rewarded for branching away from U.S. Up more than 23% YTD, the WisdomTree Dynamic International Equity Fund (DDWM ) confirms as much.
DDWM is mostly keeping pace with the MSCI EAFE Index this year. But the WisdomTree fund is doing so with annualized volatility that’s 200 basis points below that of the MSCI gauge. That’s old hat for DDWM because over the past three years, the fund has trounced the MSCI EAFE Index. It’s accomplished that feat with nearly 300 basis points less annualized volatility.
DDWM Has Perks Galore
“Dynamic” isn’t just a buzzword used to call attention to DDWM. Rather, the fund lives up to that billing on multiple fronts. For example, its roster comprises exclusively dividend payers. That confirms investors are compensated for venturing outside the U.S. That’s pertinent because some ex-U.S. markets are credible payout growth destinations in their own rights.
Dividends aren’t the only perk offered by DDWM. The fund’s dynamic nature is also sourced by way of “hedging exposure to fluctuations of the value of the applicable foreign currencies relative to the U.S. dollar,” according to WisdomTree. That methodology has benefited investors at a time when the dollar has flailed.
“The US dollar’s decline relative to other major world currencies in 2025 has been a tailwind for unhedged US investors holding foreign stocks,” noted Morningstar analyst Dan Lefkovitz. “As an example, check out the difference between the returns of the Morningstar Europe Index of equities when expressed in US dollars versus euros (eurozone stocks represent 50% of current index value, with the remainder UK, Switzerland, and the Nordics).”
DDWM is levered to theme of European equities benefiting from the weaker dollar. That’s because eight of the fund’s top 10 geographic exposures are European economies representing four different currencies, including the euro.
DDWM has other positive attributes, including Japan being its largest geographic weight and the point that international stocks are still undemanding on valuation relative to U.S. equities.
“In contrast to the US, international equities carried low valuations coming into 2025. They have underpromised and overdelivered. Meanwhile, the US is giving many investors pause, with its narrow and pricey market, mounting debt load, and policy uncertainty,” concluded Lefkovitz.
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