Successful ETFs can look back on key milestones, from anniversaries to debuts on popular brokerages. For many investors, however, one factor that tends to draw attention, AUM thresholds, can really appeal. They help underline which strategies are on the up and which may be more liquid than some rivals. On this occasion, the international dividend ETF DOL has recently surpassed $500 million in AUM, and as such invites a fresh look.
(DOL ), the WisdomTree International LargeCap Dividend Fund, launched more than 15 years ago in 2006. The strategy tracks the WisdomTree International LargeCap Dividend Index for a 48 basis point (bps) fee, hitting $504 million as of November 20th per VettaFi. That AUM growth owed virtually all of its rise to price influence as compared to fund flows, suggesting its investment approach has paid off to some degree.
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What about the international dividend ETF that helped boost it so notably? DOL offers exposure to large-cap dividend payers outside the U.S. and Canada. It determines its components and allocations based on dividends, positioning itself as a long-term hold for those who believe in the value of long-term dividends.
Firms Held in the International Dividend ETF
That has led it to hold names from Nestle (NESN) and AstraZeneca (AZN) which, of course, represent two different sectors. What brings them together, then, is instead the strength of their dividends. Dividends offer some potent benefits on their own, outside of their use as an indicator of firms’ health. By reinvesting dividends into dividend-paying stocks, such an approach can prove a potent long-term play. It also doesn’t hurt to add current income. For an ETF, specifically, liquid underlying stocks help too.
DOL hitting $500 million presents an opportunity for investors looking to diversify abroad. With the U.S. economy still beleaguered by high interest rates, but foreign markets further ahead in their rate cycles, an international dividend ETF like DOL may appeal. The strategy has outperformed both its ETF Database Category and Factset Segment averages YTD and over one year.
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