 The
WisdomTree Dynamic Currency Hedged International SmallCap Equity Fund
(DDLS) is an exchange-traded fund that seeks to provide exposure to
small-cap international stocks while mitigating the effects of
currency fluctuations by employing a dynamic currency-hedging
strategy.
DDLS tracks the WisdomTree Dynamic Currency Hedged
International SmallCap Equity Index, which consists of small-cap
companies outside of the U.S. that are listed on stock exchanges in
developed and emerging market countries. The index is weighted based
on market capitalization and is rebalanced annually.
The fund
uses a dynamic currency-hedging strategy, which means that the
currency exposure of the portfolio is actively managed. The currency
hedge ratio is adjusted on a monthly basis based on market volatility
and other factors. The goal of this strategy is to reduce the impact
of currency fluctuations on the returns of the fund.
As of
September 2021, the top country exposures in the fund were Japan, the
United Kingdom, Canada, and Switzerland. The top sector exposures were
industrials, consumer discretionary, and materials.
Investors
who are interested in international small-cap stocks and are concerned
about the impact of currency fluctuations on their returns may find
DDLS to be a suitable investment option. However, it's important to
keep in mind that the use of a currency-hedging strategy does not
guarantee protection against currency risk, and the fund may
underperform its unhedged counterparts in certain market conditions.
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