Wisdomtree, Inc. · NYSE:WT
Wisdomtree — Investor Presentation (January 2023)
40 slides from Wisdomtree's investor presentation, January 2023
Slide 1: Dividend Monitor
Dividend Monitor As of 12/31/2022
Slide 2: US Factor Return YTD as of 12/31/2022
US Factor Return YTD as of 12/31/2022 Source: WisdomTree, FactSet, Russell, MSCI, S&P. You cannot invest directly in an index. Past performance is not indicative of future returns. High Dividend: WisdomTree U.S. High Dividend Index. Quality Dividend Growth: WisdomTree U.S. Quality Dividend Growth In
Slide 3: Year-to-Date S&P 500 Dividend Yield Quintiles Performance
Year-to-Date S&P 500 Dividend Yield Quintiles Performance 20.0% 12.4% 10.0% 0.0% -5.9% -10.0% -8.5% -10.7% -20.0% -18.1% -30.0% -26.4% -40.0% -38.6% -50.0% 1st Quintile 2nd Quintile 4th Quintile 3rd Quintile S&P 500 5th Quintile Zero Div. Index Yield Source: WisdomTree, Factset. Returns as of 12/31/
Slide 4: Year-to-Date Russell 2000 Dividend Yield Quintiles Performance
Year-to-Date Russell 2000 Dividend Yield Quintiles Performance 0.0% -5.0% -10.0% -8.5% -10.4% -10.6% -11.5% -12.8% -15.0% -20.0% -20.4% -25.0% -28.0% -30.0% 4th Quintile 2nd Quintile 3rd Quintile 5th Quintile 1st Quintile Russell Zero Div. 2000® Index Yield Source: WisdomTree, Factset. Returns as of
Slide 5: Dividends in Inflationary Environment
Dividends in Inflationary Environment 4
Slide 6: 10-Year U.S. TIPS Yields
10-Year U.S. TIPS Yields + TIPS are typically used by investors as an inflation-hedge for fixed-income allocations Source: Bloomberg, FRED. Past performance is not indicative of future results. Treasury inflation-protected securities (TIPS), issued by the U.S. government, are Treasury securities ind
Slide 7: Dividends Have Steadily Outgrown Inflation
Dividends Have Steadily Outgrown Inflation + Since 1957, dividends have grown by an average of 5.7% per year—more than 2% above the rate of inflation (represented as CPI in the chart below) + That characteristic is why Professor Jeremy Siegel refers to stocks as “Super TIPS”—stocks can provide long-
Slide 8: Dividends are Much Less Volatile than Stock Prices
Dividends are Much Less Volatile than Stock Prices + In the last 64 years, there were only six years where dividend levels declined, and only one where they fell more than 5% + By contrast, during those same 64 years, stock prices fell in 18 years, with a worst calendar-year decline of over 40% and
Slide 9: Dividends Have a Significant Impact on Long-Run Stock Returns
Dividends Have a Significant Impact on Long-Run Stock Returns + Since 1978, dividends and reinvested dividends have contributed 70% of the U.S. stock market’s return, helping a $10,000 investment grow to over $1.2 million Source: WisdomTree, Zephyr StyleAdvisor, 12/31/1978-12/31/2022. Past performan
Slide 10: Fama-French Research on Dividend Yield Quintiles
Fama-French Research on Dividend Yield Quintiles + Each of the first four Dividend Yield Quintiles outperformed the market, with the No Dividends portfolio a clear underperformer + 2nd Quintile had the best Sharpe Ratio, with the 1st Quintile the next best Source: Fama-French Data Library, 12/31/195
Slide 11: Income—Both Dividends and Buybacks—Can Be Found Across Sectors
Income—Both Dividends and Buybacks—Can Be Found Across Sectors Source: WisdomTree, FactSet, as of 12/31/2022. Past performance is not indicative of future results. You cannot invest directly in an index. Dividend Monitor 10
Slide 12: Dividends More Prevalent Among Larger Companies, but Not Limited to Large-Caps
Dividends More Prevalent Among Larger Companies, but Not Limited to Large-Caps – About 81% of the Russell Top 200 paid dividends – About 62% of companies in the Russell Midcap Index and about 39% of companies in the Russell 2000 Index pay dividends Sources: WisdomTree, FactSet, 12/31/1994–12/31/2022
Slide 13: Global Dividends
Global Dividends 12
Slide 14: Global Dividend Stream
Global Dividend Stream + Dividend Stream = Dividends per Share x Shares Outstanding Dividend Yield % Market Dividend Dividend Dividend Market Cap Market Cap Market Cap Cap Dividend Stream Stream ($bn) Weight ($bn) Weight Weighted Payers Weighted United States $638.3 43.1% $37,839.2 59.4% 76.9% 3.3%
Slide 15: Sector Weights by Region—Dividend and Market-Cap Weighted
Sector Weights by Region—Dividend and Market-Cap Weighted Source: WisdomTree, MSCI, as of 12/31/2022. U.S. dividends are indicated. Dividend Stream and Market Cap totals are adjusted for investability factors. You cannot invest directly in an index. Dividend Monitor 14
Slide 16: Dividend Growth by Region
Dividend Growth by Region Source: WisdomTree, MSCI, 12/31/2019-12/31/2022. Dividends are trailing twelve month. Regions represented by respective MSCI indexes. You cannot invest directly in an index. Dividend Monitor 15
Slide 17: US Dividend Stream Growth by Sector
US Dividend Stream Growth by Sector Dividend Stream Growth Sector Weights - US Dividend Stream Annualized Since Since Since Sector 2006 2011 2016 2006 2011 Y-o-Y '06 '11 '16 Communication Services 6.5% 8.5% 5.0% 6.5% 8.5% 3.3% 1.8% 2.9% -18.8% Consumer Discretionary 5.8% 6.4% 9.3% 5.8% 6.4% 6.7% 8.3
Slide 18: EAFE Dividend Stream Growth by Sector
EAFE Dividend Stream Growth by Sector Dividend Stream Growth Sector Weights - EAFE Dividend Stream Annualized Since Since Since Sector 2007 2012 2017 2007 2012 Y-o-Y '07 '12 '17 Communication Services 9.9% 9.1% 5.1% 5.4% 4.9% -3.0% -3.8% 0.7% -3.6% Consumer Discretionary 8.5% 7.6% 10.8% 7.7% 9.0% 2.
Slide 19: Emerging Markets Dividend Stream Growth by Sector
Emerging Markets Dividend Stream Growth by Sector Dividend Stream Growth Sector Weights - EM Dividend Stream Annualized Since Since Since Sector 2007 2012 2017 2007 2012 Y-o-Y '07 '12 '17 Communication Services 11.6% 10.8% 6.8% 4.8% 4.2% 1.1% -1.6% 1.8% 1.1% Consumer Discretionary 4.6% 5.7% 6.8% 4.2
Slide 20: Top 20 U.S. Dividend Payers
Top 20 U.S. Dividend Payers Dividend Stream Dividends per Share Change ($bn) Name Sector 12/31/21 12/30/22 12/31/21 12/30/22 Y-o-Y Microsoft Information Technology $17.69 $19.26 $2.48 $2.72 9.68% ExxonMobil Energy $14.90 $14.99 $3.52 $3.64 3.41% Apple Information Technology $14.44 $14.64 $0.88 $0.92
Slide 21: Top 20 European Dividend Payers
Top 20 European Dividend Payers Dividends Dividend Stream ($bn) per Share Name Sector Country 12/31/21 12/30/22 Y-o-Y Nestle Consumer Staples Switzerland $8.50 $8.32 1.82% Rio Tinto Materials United Kingdom $7.50 $7.76 16.49% Novartis Health Care Switzerland $7.21 $7.25 3.33% TotalEnergies Energy Fr
Slide 22: Top 20 Japanese Dividend Payers
Top 20 Japanese Dividend Payers Dividend Stream Dividends per Change ($bn) Share Name Sector 12/31/21 12/30/22 12/31/21 12/30/22 Y-o-Y Toyota Motor Consumer Discretionary $4.70 $4.26 ¥51 ¥53 3.92% Mitsubishi UFJ Fincl Grp Financials $2.91 $2.81 ¥28 ¥32 14.29% Sumitomo Mitsui Financial Financials $2.
Slide 23: Top 20 Emerging Markets Dividend Payers
Top 20 Emerging Markets Dividend Payers Dividends Dividend Stream ($bn) per Share Name Sector Country 12/31/21 12/30/22 Y-o-Y Petroleo Brasileiro Energy Brazil $4.83 $15.10 196.37% Petroleo Brasileiro Energy Brazil $3.77 $11.80 196.37% Taiwan Semicon Mfg Information Technology Taiwan $9.57 $8.82 2.3
Slide 24: Top 15 Dividend Payers Historically
Top 15 Dividend Payers Historically Top 15 Global Dividend Payers Rank 2007 2012 2017 2021 2022 1 General Electric Co AT&T ExxonMobil Microsoft Microsoft 2 HSBC Holdings ExxonMobil Apple ExxonMobil BHP Group 3 Citigroup Banco Santander Microsoft AT&T Petroleo Brasileiro 4 BofA Corp HSBC Holdings AT&
Slide 25: WisdomTree Dividend Indexes
WisdomTree Dividend Indexes 24
Slide 26: WisdomTree Dividend Indexes
WisdomTree Dividend Indexes Index Style WisdomTree Index Index Ticker Inception Related WisdomTree ETF Date U.S. Dividend WTDI 6/1/2006 U.S. Dividend (DTD) U.S. Broad U.S. LargeCap Dividend WTLDI 6/1/2006 U.S. LargeCap Dividend (DLN) Dividends U.S. MidCap Dividend WTMDI 6/1/2006 U.S. MidCap Dividend
Slide 27: U.S. Dividend Index Total Return Performance
U.S. Dividend Index Total Return Performance Cumulative Returns Average Annual Total Returns as of 12/30/2022 Name QTD YTD 1-Year 3-Year 5-Year 10-Year WisdomTree U.S. Dividend 12.98% -3.47% -3.47% 7.92% 8.71% 11.74% Russell 3000 Value 12.18% -7.98% -7.98% 5.88% 6.50% 10.16% Russell 3000 7.18% -19.2
Slide 28: U.S. Dividend Index Trailing 12-Month Dividend Yields
U.S. Dividend Index Trailing 12-Month Dividend Yields 4.5% 4.24% 4.0% 3.5% 3.35% 3.0% 2.89% 2.78% 2.74% 2.5% 2.0% 1.65% 1.62% 1.5% 1.41% 1.0% 0.5% 0.0% WT U.S. WT U.S. WT U.S. WT U.S. WT U.S. Russell Russell Russell High SmallCap MidCap Dividend LargeCap 1000® Midcap® 2000® Dividend Dividend Dividen
Slide 29: International Dividend Index Total Return Performance
International Dividend Index Total Return Performance Cumulative Returns Average Annual Total Returns as of 12/30/2022 Name QTD YTD 1-Year 3-Year 5-Year 10-Year WisdomTree International Equity 17.60% -8.81% -8.81% -0.36% 0.51% 4.19% MSCI EAFE Value 19.64% -5.58% -5.58% 0.65% 0.17% 3.51% MSCI EAFE 17
Slide 30: International Dividend Index Trailing 12-Month Dividend Yields
International Dividend Index Trailing 12-Month Dividend Yields 7.0% 6.39% 6.0% 5.20% 4.94% 5.0% 4.76% 4.68% 4.0% 3.23% 3.18% 3.09% 3.0% 2.0% 1.0% 0.0% WT Int'l WT Int'l WT Int'l WT Int'l WT Int'l MSCI EAFE MSCI EAFE MSCI EAFE High SmallCap MidCap Equity LargeCap Mid Cap Small Cap Dividend Dividend D
Slide 31: Quality Dividend Growth Index Total Return Performance
Quality Dividend Growth Index Total Return Performance Cumulative Returns Average Annual Total Returns as of 12/30/2022 Name QTD YTD 1-Year 3-Year 5-Year 10-Year WisdomTree U.S. Quality Dividend Growth 12.86% -6.14% -6.14% 10.16% 10.56% N/A NASDAQ U.S. Dividend Achievers Select 13.47% -9.52% -9.52%
Slide 32: Quality Dividend Growth Index Trailing 12-Month Dividend Yields
Quality Dividend Growth Index Trailing 12-Month Dividend Yields 3.5% 3.26% 3.23% 3.11% 3.0% 2.83% 2.53% 2.5% 2.20% 2.0% 1.69% 1.5% 1.41% 1.0% 0.5% 0.0% MSCI AC MSCI EAFE WT U.S. WT Int'l WT Global WT U.S. S&P 500 Russell World ex- SmallCap Quality ex-U.S. Quality 2000® USA Quality Dividend Quality D
Slide 33: Global and Emerging Dividend Index Total Return Performance
Global and Emerging Dividend Index Total Return Performance Cumulative Returns Average Annual Total Returns as of 12/30/2022 Name QTD YTD 1-Year 3-Year 5-Year 10-Year WisdomTree Emerging Markets High Dividend 10.76% -9.36% -9.36% -0.83% 1.82% 1.38% MSCI Emerging Markets Value 9.77% -15.83% -15.83% -
Slide 34: Global and Emerging Dividend Index Trailing 12-Month Dividend Yields
Global and Emerging Dividend Index Trailing 12-Month Dividend Yields 12.0% 10.65% 10.0% 8.0% 6.70% 6.0% 5.28% 4.0% 3.48% 3.36% 2.29% 2.0% 0.0% WT Emerging WT Emerging WT Global High MSCI Emerging MSCI Emerging MSCI ACWI Markets High Markets Dividend Markets Small Markets Dividend SmallCap Cap Divide
Slide 35: Glossary
Glossary Dividend yield: A financial ratio that shows how much a company pays out in dividends each year relative to its share price. Value: Characterized by lower price levels relative to fundamentals, such as earnings or dividends. Prices are lower because investors are less certain of the perform
Slide 36: Glossary
Glossary MSCI AC World ex-US Index: Measures the performance of companies incorporated in both emerging markets and developed markets, excluding the United States. Index weighting is by market cap. MSCI All Country World Index: A broad global equity benchmark that represents large and mid-cap equity
Slide 37: Glossary
Glossary MSCI USA Sector Neutral Quality Index: Refers to the MSCI USA Quality Index which is a large and mid cap US equity index aiming to capture the performance of quality growth stock. The Index screens its parent index, the MSCI USA Index for ROE, stable year-over-year earnings growth, and low
Slide 38: Glossary
Glossary WisdomTree U.S. Dividend Index: A fundamentally-weighted index that defines the dividend-paying portion of the U.S. equity market. The Index measures the performance of U.S. companies, listed on a U.S. stock exchange, that pay regular cash dividends and meet other liquidity and capitalizati
Slide 39: Glossary
Glossary WisdomTree Global ex-U.S. Dividend Growth Index: Designed to measure the performance of dividend-paying companies outside the United States with what WisdomTree believes to be potential for future dividend increases. Weighting is by dividend stream. WisdomTree International Equity Index: A
Slide 40: Important Information
Important Information Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus containing this and other important information, please call 866.909.9473 or visit WisdomTree.com to view or download a prospectus. I