Wisdomtree, Inc. · NYSE:WT
Wisdomtree — Investor Presentation (May 2023)
40 slides from Wisdomtree's investor presentation, May 31, 2023
Slide 1: Dividend Monitor
Dividend Monitor As of 5/31/2023
Slide 2: US Factor Return YTD as of 5/31/2023
US Factor Return YTD as of 5/31/2023 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 Ind
Slide 3: Year-to-Date S&P 500 Dividend Yield Quintiles Performance
Year-to-Date S&P 500 Dividend Yield Quintiles Performance 35.0% 30.0% 28.3% 26.6% 25.0% 20.0% 15.0% 9.7% 10.0% 5.1% 5.0% 0.0% -5.0% -2.5% -6.2% -10.0% -7.6% Zero Div. 5th Quintile S&P 500 4th Quintile 2nd Quintile 3rd Quintile 1st Quintile Yield Index Source: WisdomTree, Factset. Returns as of 5/31/
Slide 4: Year-to-Date Russell 2000 Dividend Yield Quintiles Performance
Year-to-Date Russell 2000 Dividend Yield Quintiles Performance 4.0% 2.1% 2.0% 0.0% -2.0% -1.4% -4.0% -3.5% -6.0% -5.0% -6.5% -8.0% -10.0% -12.0% -11.4% -14.0% -16.0% -15.6% -18.0% Zero Div. 5th Quintile 4th Quintile Russell 1st Quintile 3rd Quintile 2nd Quintile Yield 2000® Index Source: WisdomTree,
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 10-Year U.S. TIPS Yields (1/31/1997-5/31/2023) 5.0% 10-Year U.S. TIPS Yield 4.0% 3.0% Period Average: 1.44% 2.0% 1.0% 0.0% -1.0% -2.0% Jan-97 Jan-00 Jan-03 Jan-06 Jan-09 Jan-12 Jan-15 J
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 69% of the U.S. stock market’s return, helping a $10,000 investment grow to over $1.2 million Source: WisdomTree, Zephyr StyleAdvisor, 12/31/1978-12/31/2022. Past performan
Slide 10: Fama-French Research on Dividend Yield Quintiles
Fama-French Research on Dividend Yield Quintiles + Each of the first four Dividend Yield Quintiles outperformed the market, with the No Dividends portfolio a clear underperformer + 2nd Quintile had the best Sharpe Ratio, with the 1st Quintile the next best Source: Fama-French Data Library, 12/31/195
Slide 11: Income—Both Dividends and Buybacks—Can Be Found Across Sectors
Income—Both Dividends and Buybacks—Can Be Found Across Sectors Source: WisdomTree, FactSet, as of 5/31/2023. Past performance is not indicative of future results. You cannot invest directly in an index. Dividend Monitor 10
Slide 12: Dividends More Prevalent Among Larger Companies, but Not Limited to Large-Caps
Dividends More Prevalent Among Larger Companies, but Not Limited to Large-Caps – About 80% of the Russell Top 200 paid dividends – About 60% of companies in the Russell Midcap Index and about 35% of companies in the Russell 2000 Index pay dividends Sources: WisdomTree, FactSet, 12/31/1994–5/31/2023.
Slide 13: Global Dividends
Global Dividends 12
Slide 14: Global Dividend Stream
Global Dividend Stream + Dividend Stream = Dividends per Share x Shares Outstanding Dividend Yield % Market Dividend Dividend Dividend Market Cap Market Cap Market Cap Cap Dividend Stream Stream ($bn) Weight ($bn) Weight Weighted Payers Weighted United States $648.8 42.9% $40,703.5 60.4% 73.8% 3.5%
Slide 15: Sector Weights by Region—Dividend and Market-Cap Weighted
Sector Weights by Region—Dividend and Market-Cap Weighted Source: WisdomTree, MSCI, as of 5/31/2023. U.S. dividends are indicated. Dividend Stream and Market Cap totals are adjusted for investability factors. You cannot invest directly in an index. Dividend Monitor 14
Slide 16: Dividend Growth by Region Since December 2019
Dividend Growth by Region Since December 2019 Source: WisdomTree, MSCI, 12/31/2019-5/31/2023. Dividends are trailing twelve month. Regions represented by respective MSCI indexes. You cannot invest directly in an index. Dividend Monitor 15
Slide 17: US Dividend Stream Growth by Sector
US Dividend Stream Growth by Sector Sector Weights - US Dividend Stream Dividend Stream Growth Annualized Sector 2007 2012 2017 2022 2023 Since '07 Since '12 Since '17 Y-o-Y Communication Services 6.3% 7.8% 6.9% 4.2% 4.2% 3.1% 1.1% -3.5% -21.3% Consumer Discretionary 5.4% 6.5% 7.1% 6.3% 6.5% 7.3% 7.
Slide 18: EAFE Dividend Stream Growth by Sector
EAFE Dividend Stream Growth by Sector Sector Weights - EAFE Dividend Stream Dividend Stream Growth Annualized Sector 2007 2012 2017 2022 2023 Since '07 Since '12 Since '17 Y-o-Y Communication Services 9.9% 9.1% 6.6% 4.8% 4.7% -2.8% -3.5% -4.0% -1.1% Consumer Discretionary 8.5% 7.6% 9.7% 8.9% 9.1% 2.
Slide 19: Emerging Markets Dividend Stream Growth by Sector
Emerging Markets Dividend Stream Growth by Sector Sector Weights - EM Dividend Stream Dividend Stream Growth Annualized Sector 2007 2012 2017 2022 2023 Since '07 Since '12 Since '17 Y-o-Y Communication Services 11.6% 10.8% 7.6% 4.5% 4.7% 1.4% -1.0% 1.2% 7.0% Consumer Discretionary 4.5% 5.4% 6.3% 4.3
Slide 20: Top 20 U.S. Dividend Payers
Top 20 U.S. Dividend Payers Dividend Stream ($bn) Dividends per Share Change Name Sector 5/31/22 5/31/23 5/31/22 5/31/23 Y-o-Y Microsoft Information Technology $17.62 $19.21 $2.48 $2.72 9.68% 00:00.0 Apple Information Technology $14.89 $15.10 $0.92 $0.96 4.35% 00:00.0 ExxonMobil Energy $14.83 $14.72
Slide 21: Top 20 European Dividend Payers
Top 20 European Dividend Payers Dividends Dividend Stream ($bn) per Share Name Sector Country 5/31/22 5/31/23 Y-o-Y Nestle Consumer Staples Switzerland $8.22 $8.62 5.36% 00:00.0 Shell Plc Energy United Kingdom $7.22 $7.30 10.82% 00:00.0 Roche Holding Health Care Switzerland $6.82 $7.30 2.15% 00:00.0
Slide 22: Top 20 Japanese Dividend Payers
Top 20 Japanese Dividend Payers Dividend Stream Dividends per Share Change ($bn) Name Sector 5/31/22 5/31/23 5/31/22 5/31/23 Y-o-Y Toyota Motor Consumer Discretionary $4.20 $4.55 ¥51 ¥60 17.65% 00:00.0 Mitsubishi UFJ Fincl Grp Financials $2.60 $2.62 ¥28 ¥32 14.29% 00:00.0 Sumitomo Mitsui Financial F
Slide 23: Top 20 Emerging Markets Dividend Payers
Top 20 Emerging Markets Dividend Payers Dividends per Dividend Stream ($bn) Share Change Name Sector Country 5/31/22 5/31/23 Y-o-Y Petroleo Brasileiro Energy Brazil $9.96 $14.16 53.69% 00:00.0 Petroleo Brasileiro Energy Brazil $7.78 $10.75 49.35% 00:00.0 Taiwan Semicon Mfg Information Technology Tai
Slide 24: Top 15 Dividend Payers Historically
Top 15 Dividend Payers Historically Top 15 Global Dividend Payers Rank 2007 2012 2017 2022 2023 1 AT&T ExxonMobil ExxonMobil BHP Group Microsoft 2 ExxonMobil AT&T Apple Microsoft Apple 3 Banco Santander Apple AT&T Apple ExxonMobil 4 HSBC Holdings Microsoft Microsoft ExxonMobil Petroleo Brasileiro 5
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 5/31/2023 Name QTD YTD 1-Year 3-Year 5-Year 10-Year WisdomTree U.S. Dividend -2.47% -2.05% -3.56% 12.63% 8.54% 10.00% Russell 3000 1.46% 8.74% 2.03% 12.25% 10.07% 11.45% Russell 3000 Value -2.52% -1.63
Slide 28: U.S. Dividend Index Trailing 12-Month Dividend Yields
U.S. Dividend Index Trailing 12-Month Dividend Yields 6.0% 5.11% 5.0% 4.0% 3.72% 3.09% 2.98% 2.94% 3.0% 2.0% 1.68% 1.58% 1.49% 1.0% 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 Midcap® 1000® 2000® Dividend Dividend Dividend Dividend Sour
Slide 29: International Dividend Index Total Return Performance
International Dividend Index Total Return Performance Cumulative Returns Average Annual Total Returns as of 5/31/2023 Name QTD YTD 1-Year 3-Year 5-Year 10-Year WisdomTree International Equity -2.91% 3.59% 0.01% 8.05% 1.65% 3.91% MSCI EAFE -1.53% 6.81% 3.06% 8.53% 3.21% 4.56% WisdomTree International
Slide 30: International Dividend Index Trailing 12-Month Dividend Yields
International Dividend Index Trailing 12-Month Dividend Yields 7.0% 6.31% 6.0% 5.19% 5.0% 4.75% 4.63% 4.57% 4.0% 3.11% 3.10% 2.96% 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 Small Cap Mid 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 5/31/2023 Name QTD YTD 1-Year 3-Year 5-Year 10-Year WisdomTree U.S. Quality Dividend Growth 0.62% 4.51% 4.47% 14.45% 11.49% 12.48% NASDAQ U.S. Dividend Achievers Select -0.38% 1.28% 2.00% 11.
Slide 32: Quality Dividend Growth Index Trailing 12-Month Dividend Yields
Quality Dividend Growth Index Trailing 12-Month Dividend Yields 3.5% 3.22% 3.18% 3.11% 3.0% 2.64% 2.5% 2.36% 2.16% 2.0% 1.61% 1.49% 1.5% 1.0% 0.5% 0.0% WT U.S. MSCI AC MSCI EAFE WT Int'l WT Global WT U.S. S&P 500 Russell SmallCap World ex- Quality ex-U.S. Quality 2000® Quality USA 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 5/31/2023 Name QTD YTD 1-Year 3-Year 5-Year 10-Year WisdomTree Emerging Markets High Dividend -1.52% 4.31% -3.84% 9.15% 2.64% 2.14% MSCI Emerging Markets -2.79% 1.05% -8.49% 3.47% -0.67%
Slide 34: Global and Emerging Dividend Index Trailing 12-Month Dividend Yields
Global and Emerging Dividend Index Trailing 12-Month Dividend Yields 12.0% 10.08% 10.0% 8.0% 6.45% 6.0% 5.54% 4.0% 3.35% 3.05% 2.19% 2.0% 0.0% WT Emerging WT Emerging WT Global High MSCI Emerging MSCI Emerging MSCI ACWI Markets High Markets Dividend Markets Markets Small 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/ investments to view or download a