By Jeff Weniger, CFA
We're fielding a lot of inquiries about how the WisdomTree International Hedged Quality Dividend Growth Fund (IHDG) has held up better than the MSCI EAFE Index during the COVID-19 panic.
Much of it can be explained by the post-global financial crisis setup: when you screen for high-quality companies by using return on equity ((ROE)), the result is often very light exposure to the beleaguered Financials sector.
Skewing away from value in the direction of growth has proven fortuitous for international developed economy stocks in the COVID-19 crash. Figure 1 shows standardized