WisdomTree Dynamic International Equity Fund

DDWM

Börsenwert 1,43 Mrd. $

One of the primary reasons for embracing ex-U.S. stocks is diversification or reducing correlations within U.S.-heavy portfolios. Thanks to single-country ETFs, it's much easier for U.S. market participants to invest in individual countries than it was in say the 1970s or 1980s.

International stocks finally found their respective grooves last year. With that momentum carrying over into 2026, advisors and investors are revisiting ex-U.S. ETFs in significant fashion.

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.

A much-discussed theme since the start of 2025 has been the out-performance of international equities, including developed markets, against the S&P 500 – something some investors have been waiting on for what feels like in an eternity.

I track about a thousand funds using Mutual Fund Observer and have developed a ranking system to group equity funds into four categories based on risk, valuation, and/or yield. Tier One contains the Lipper Categories and funds that have a combination of lower risk, lower valuations, and higher yields. Tier Two contains those with low to moderate valuations and have lower risk.

By Liqian Ren, Director of Modern Alpha Key Takeaways Currency hedging is crucial for mitigating risks in global investing by managing foreign exchange fluctuations while preserving equity exposure. Our dynamic currency-hedged ETFs have proven to reduce portfolio risk through factor-based strategies.