New WisdomTree ETFs For Ten International Sectors

Game on. That’s the message from WisdomTree Investments.

The dividend indexing firm, which launched its first twenty ETFs earlier this month, has filed with the SEC for the right to launch ten additional funds. The new funds will focus on ten international sectors, and will be the first purely international (i.e., ex-U.S.) sector-based ETFs.

The funds are:

* WisdomTree International Basic Materials Sector Fund
* WisdomTree International Communications Sector Fund
* WisdomTree International Consumer Cyclical Sector Fund
* WisdomTree International Consumer Non-Cyclical Sector Fund
* WisdomTree International Energy Sector Fund
* WisdomTree International Financial Sector Fund
* WisdomTree International Health Care Sector Fund
* WisdomTree International Industrial Sector Fund
* WisdomTree International Technology Sector Fund
* WisdomTree International Utilities Sector Fund

The indexes will follow the same dividend weighting rules as the bulk of the original 20 ETFs, weighting stocks by the cash payout of their corporate dividend: in other words, shares outstanding multiplied by dividend-per-share. That weighting scheme is designed to capture high-paying companies without overweighting small-caps and thereby threatening the liquidity of the ETF. (For more info on the weighting scheme, see our initial coverage of the WisdomTree ETF launch.)

The move makes it clear that WisdomTree intends to fulfill its promise to offer a complete, dividend-screened alternative to traditional ETFs, across sector, country and regional indexes. The idea is that advisors and investors can either wholly or substantially replace their cap-weighted holdings with WisdomTree's dividend-screened alternative. It's the same strategy being pursued by PowerShares. (The only exception to the "complete offering" theme is on the style front ... it's a bit hard to imagine a dividend-screened growth fund). WisdomTree is being smart about their strategy, however, by starting in areas where there is no competition (international small-caps, international sectors, etc.).

The new funds will charge expenses of 58 basis points. It is not clear from the SEC filing how WisdomTree is classifying stocks into sectors. The press office is tracking that information down currently -- check back soon.

“Since our inception, we have focused on developing innovative products designed to passively outperform traditional benchmarks,” said Bruce Lavine, President and COO of WisdomTree Investments. “International sectors offer an added dimension as the first pure non-U.S. sector ETF family. Combined with our recently launched international small- and mid-cap funds, WisdomTree will be bringing to market a unique set of international ETFs.”

So far, WisdomTree has attracted approximately $425 million in assets to its initial 20 ETFs, including $275 million between the 14 international funds and $150+ million between the 6 domestic funds. The most successful fund so far has been the WisdomTree U.S. LargeCap Dividend Fund (ticker: DLN), which has pulled in $59.8 million.