Wisdomtree, Inc. · NYSE:WT
Wisdomtree — Investor Presentation (September 2022)
40 slides from Wisdomtree's investor presentation, Sep 30, 2022
Slide 1: Dividend Monitor
Dividend Monitor As of 9/30/2022
Slide 2: US Factor Return YTD as of 9/30/2022
US Factor Return YTD as of 9/30/2022 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 Ind
Slide 3: Year-to-Date S&P 500 Dividend Yield Quintiles Performance
Year-to-Date S&P 500 Dividend Yield Quintiles Performance 0.0% -5.0% -4.3% -10.0% -15.0% -20.0% -17.9% -20.6% -20.6% -25.0% -23.9% -30.0% -27.7% -35.0% -34.4% -40.0% 1st Quintile 2nd Quintile 3rd Quintile 4th Quintile S&P 500 5th Quintile Zero Div. Index Yield Source: WisdomTree, Factset. Returns as
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% -15.0% -20.0% -18.1% -18.5% -19.2% -21.3% -22.1% -25.0% -25.1% -30.0% -29.3% -35.0% 4th Quintile 3rd Quintile 2nd Quintile 1st Quintile 5th Quintile Russell Zero Div. 2000® Index Yield Source: WisdomTree, Factset. Retur
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 69% of the U.S. stock market’s return, helping a $10,000 investment grow to over $1.5 million Source: WisdomTree, Zephyr StyleAdvisor, 12/31/1978-12/31/2021. Past performan
Slide 10: Fama-French Research on Dividend Yield Quintiles
Fama-French Research on Dividend Yield Quintiles + Each of the first four Dividend Yield Quintiles outperformed the market, with the No Dividends portfolio a clear underperformer + 2nd Quintile had the best Sharpe Ratio, with the 1st Quintile the next best Source: Fama-French Data Library, 12/31/195
Slide 11: Income—Both Dividends and Buybacks—Can Be Found Across Sectors
Income—Both Dividends and Buybacks—Can Be Found Across Sectors Source: WisdomTree, FactSet, as of 9/30/22. Past performance is not indicative of future results. You cannot invest directly in an index. Dividend Monitor 10
Slide 12: Dividends More Prevalent Among Larger Companies, but Not Limited to Large-Caps
Dividends More Prevalent Among Larger Companies, but Not Limited to Large-Caps – About 80% of the Russell Top 200 paid dividends – About 60% of companies in the Russell Midcap Index and about 35% of companies in the Russell 2000 Index pay dividends Sources: WisdomTree, FactSet, 12/31/1994–9/30/2022.
Slide 13: Global Dividends
Global Dividends 12
Slide 14: Global Dividend Stream
Global Dividend Stream + Dividend Stream = Dividends per Share x Shares Outstanding Dividend Yield % Market Dividend Dividend Dividend Market Cap Market Cap Market Cap Cap Dividend Stream Stream ($bn) Weight ($bn) Weight Weighted Payers Weighted United States $626.8 43.9% $35,665.4 61.0% 74.1% 3.6%
Slide 15: Sector Weights by Region—Dividend and Market-Cap Weighted
Sector Weights by Region—Dividend and Market-Cap Weighted Source: WisdomTree, MSCI, as of 9/30/2022. U.S. dividends are indicated. Dividend Stream and Market Cap totals are adjusted for investability factors. You cannot invest directly in an index. Dividend Monitor 14
Slide 16: Dividend Growth by Region Since December 2019
Dividend Growth by Region Since December 2019 Source: WisdomTree, MSCI, 12/31/2019-9/30/2022. Dividends are trailing twelve month. Regions represented by respective MSCI indexes. You cannot invest directly in an index. Dividend Monitor 15
Slide 17: US Dividend Stream Growth by Sector
US Dividend Stream Growth by Sector Sector Weights - US Dividend Stream Dividend Stream Growth Annualized Since Since Since Sector 2006 2011 2016 2021 2022 Y-o-Y '06 '11 '16 Communication Services 6.5% 8.5% 5.0% 5.8% 4.5% 3.4% 1.9% 3.1% -17.9% Consumer Discretionary 5.8% 6.4% 9.3% 5.6% 6.5% 6.7% 8.3
Slide 18: EAFE Dividend Stream Growth by Sector
EAFE Dividend Stream Growth by Sector Sector Weights - EAFE Dividend Stream Dividend Stream Growth Annualized Since Since Since Sector 2006 2011 2016 2021 2022 Y-o-Y '06 '11 '16 Communication Services 9.8% 10.5% 5.4% 5.8% 4.9% -2.2% -5.2% 1.1% -13.4% Consumer Discretionary 7.9% 6.9% 10.9% 7.7% 8.9%
Slide 19: Emerging Markets Dividend Stream Growth by Sector
Emerging Markets Dividend Stream Growth by Sector Sector Weights - EM Dividend Stream Dividend Stream Growth Annualized Since Since Since Sector 2006 2011 2016 2021 2022 Y-o-Y '06 '11 '16 Communication Services 12.8% 10.6% 7.8% 4.8% 4.2% 1.6% -1.1% 1.5% 1.3% Consumer Discretionary 5.6% 5.8% 7.0% 4.5
Slide 20: Top 20 U.S. Dividend Payers
Top 20 U.S. Dividend Payers Dividend Stream ($bn) Dividends per Share Change Name Sector 9/30/21 9/30/22 9/30/21 9/30/22 Y-o-Y Microsoft Information Technology $15.98 $17.57 $2.24 $2.48 10.71% 00:00.0 Apple Information Technology $14.46 $14.79 $0.88 $0.92 4.55% 00:00.0 ExxonMobil Energy $14.73 $14.6
Slide 21: Top 20 European Dividend Payers
Top 20 European Dividend Payers Dividends Dividend Stream ($bn) per Share Name Sector Country 9/30/21 9/30/22 Y-o-Y Nestle Consumer Staples Switzerland $8.30 $7.82 1.82% 00:00.0 Rio Tinto Materials United Kingdom $7.46 $7.20 16.49% 00:00.0 Shell Plc Energy United Kingdom $3.06 $7.02 31.37% 00:00.0 N
Slide 22: Top 20 Japanese Dividend Payers
Top 20 Japanese Dividend Payers Dividend Stream Dividends per Share Change ($bn) Name Sector 9/30/21 9/30/22 9/30/21 9/30/22 Y-o-Y Toyota Motor Consumer Discretionary $4.47 $3.81 ¥47 ¥52 10.64% 00:00.0 Mitsubishi UFJ Fincl Grp Financials $2.85 $2.52 ¥26 ¥31 17.31% 00:00.0 Nippon Yusen Industrials $0
Slide 23: Top 20 Emerging Markets Dividend Payers
Top 20 Emerging Markets Dividend Payers Dividends per Dividend Stream ($bn) Share Change Name Sector Country 9/30/21 9/30/22 Y-o-Y Petroleo Brasileiro Energy Brazil $2.09 $14.65 594.20% 00:00. Petroleo Brasileiro Energy Brazil $1.64 $11.45 594.20% 00:00. Vale Materials Brazil $10.34 $10.95 5.82% 00:
Slide 24: Top 15 Dividend Payers Historically
Top 15 Dividend Payers Historically Top 15 Global Dividend Payers Rank 2006 2011 2016 2021 2022 1 General Electric Co AT&T ExxonMobil Microsoft Microsoft 2 HSBC Holdings ExxonMobil AT&T AT&T BHP Group 3 Citigroup Telefonica Apple ExxonMobil Apple 4 BofA Corp TotalEnergies Microsoft Apple ExxonMobil
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 9/30/22 Name QTD YTD 1-Year 3-Year 5-Year 10-Year WisdomTree U.S. Dividend -5.59% -14.56% -5.00% 6.13% 7.42% 10.35% Russell 3000 Value -5.56% -17.97% -11.79% 4.37% 5.11% 9.08% Russell 3000 -4.46% -24.6
Slide 28: U.S. Dividend Index Trailing 12-Month Dividend Yields
U.S. Dividend Index Trailing 12-Month Dividend Yields 5.0% 4.5% 4.36% 4.0% 3.88% 3.5% 3.21% 3.13% 3.09% 3.0% 2.5% 2.0% 1.71% 1.69% 1.43% 1.5% 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 Di
Slide 29: International Dividend Index Total Return Performance
International Dividend Index Total Return Performance Cumulative Returns Average Annual Total Returns as of 9/30/22 Name QTD YTD 1-Year 3-Year 5-Year 10-Year WisdomTree International Equity -9.50% -22.46% -19.98% -3.00% -2.01% 3.12% MSCI EAFE Value -10.21% -21.08% -20.16% -2.79% -2.74% 2.39% MSCI EA
Slide 30: International Dividend Index Trailing 12-Month Dividend Yields
International Dividend Index Trailing 12-Month Dividend Yields 7.0% 6.52% 6.0% 5.66% 5.05% 5.04% 4.99% 5.0% 4.0% 3.50% 3.32% 3.24% 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 LargeCap Equity MidCap 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 9/30/22 Name QTD YTD 1-Year 3-Year 5-Year 10-Year WisdomTree U.S. Quality Dividend Growth -5.40% -16.83% -6.33% 8.67% 9.81% N/A NASDAQ U.S. Dividend Achievers Select -5.28% -20.26% -10.69% 6.
Slide 32: Quality Dividend Growth Index Trailing 12-Month Dividend Yields
Quality Dividend Growth Index Trailing 12-Month Dividend Yields 6.0% 5.07% 5.0% 4.48% 4.0% 3.54% 3.50% 3.48% 3.0% 2.61% 2.0% 1.75% 1.43% 1.0% 0.0% WT Global WT Int'l WT U.S. MSCI EAFE MSCI AC WT U.S. S&P 500 Russell ex-U.S. Quality SmallCap World ex- Quality 2000® Quality Dividend Quality USA Divide
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 9/30/22 Name QTD YTD 1-Year 3-Year 5-Year 10-Year WisdomTree Emerging Markets High Dividend -7.75% -18.16% -17.59% -0.49% 1.07% 0.82% MSCI Emerging Markets Value -10.95% -23.32% -23.63%
Slide 34: Global and Emerging Dividend Index Trailing 12-Month Dividend Yields
Global and Emerging Dividend Index Trailing 12-Month Dividend Yields 12.0% 10.37% 10.0% 8.0% 6.51% 6.0% 5.22% 4.0% 3.58% 3.53% 2.38% 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