Exchange-traded fund sponsor and asset manager WisdomTree has launched the WisdomTree US Dividend Growth Fund (DGRW).
DGRW is designed to provide exposure to dividend-paying stocks with growth characteristics and has an expense ratio of 0.28%.
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Jeremy Schwartz, WisdomTree director of research, said, "Investors are hungry for income in this low interest rate-, low yield-environment. Rather than relying on historical records of dividend increases, DGRW uses real-time growth and quality metrics focused on companies who are growing their dividends."
The DGRW seeks to offer a diversified basket of dividend-paying securities with growth characteristics Heavy exposure to technology sector, the sector currently leading the market’s dividend growth at annual index rebalance, single stock cap of 5%, sector cap of 20%.
"We believe the key drivers of dividend growth are constantly changing. And a number of dividend-based indexes – through restrictive inclusion screens based on patterns of historical dividend trends – may miss out on what we see as dividend growth opportunities in today’s market," Schwartz said.
"We have created an additional subset of our broad dividend index family that incorporates factors we believe to be most important indicators of a company’s ability to grow their dividends – one that isn’t solely dependent on past history of dividend hikes."
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