(DDLS) WisdomTree Dynamic Currency - Ratings and Ratios

The WisdomTree Dynamic Currency-Hedged International Small-Cap Equity Fund (DDLS) aims to track a dividend-weighted index that targets small-cap equities across developed markets outside the U.S. and Canada, while dynamically hedging foreign-currency exposure back to the U.S. dollar.

At least 80 % of assets must be invested in the index’s component securities or “substantially identical” substitutes, which means the fund’s holdings will closely mirror the index composition and limit discretionary deviation.

Key quantitative points (as of the latest filing): the fund’s expense ratio is 0.45 %, assets under management are roughly $250 million, and the top five holdings collectively represent about 12 % of the portfolio, reflecting its non-diversified status and concentration risk.

Economic drivers that matter for DDLS include: (1) global small-cap earnings growth, which historically runs 1-2 % faster than large-cap peers; (2) the strength of the U.S. dollar relative to the Euro, Yen, and Pound, since the dynamic hedge seeks to offset currency swings; and (3) sector exposure, with roughly 30 % of the index weighted to industrials and consumer discretionary, sectors that are sensitive to cyclical demand.

Because the fund excludes the U.S. and Canada, its performance is especially sensitive to European and Asian macro trends such as ECB policy shifts and China’s export data, which can create short-term volatility not captured by the dividend weighting alone.

If you want a deeper, data-driven view of DDLS’s risk-adjusted returns and currency-hedge efficiency, consider reviewing the analytics available on ValueRay for a more granular assessment.