WisdomTree (WETF), the fifth-largest U.S. ETF issuer, will add to its lineup of dividend growth ETFs today with the debut of the WisdomTree Europe Dividend Growth Fund (NYSEArca:EUDG) and the WisdomTree International Hedged Dividend Growth Fund (NYSEArca:IHDG) .
IHDG, which carries an annual expense ratio of 0.58%, will track the WisdomTree International Hedged Dividend Growth Index (WTIDGH).
“The Index is comprised of the top 300 companies from the WisdomTree DEFA Index with the best combined rank of growth and quality factors. The growth factor ranking is based on long-term earnings growth expectations, while the quality factor ranking is based on three year historical averages for return on equity and return on assets. Companies are weighted in the Index based on annual cash dividends paid,” according to WisdomTree.
The index had a dividend yield of 3.14% as of May 5, according to issuer data. Food, beverage and tobacco stocks lead the sector allocations at 15.7% followed by pharmaceuticals and biotechnology stocks at 14.1%. The U.K., Switzerland an Australia combine for about 51% of the index’s weight. [A Compelling International Dividend ETF]
EUDG, which also carries an expense ratio of 0.58%, will track the WisdomTree Europe Dividend Growth Index. It is “a fundamentally weighted index that measures the performance of dividend-paying common stocks with growth characteristics selected from the WisdomTree DEFA Index. The Index comprises companies from the eligible universe based on their combined ranking of growth and quality,” according to WisdomTree.
“We believe companies that can grow their earnings have the greatest potential to raise their dividends, which is why long-term earnings growth expectations make up 50% of our selection criteria. We believe earnings growth is a necessary consideration for future dividend increases,” said WisdomTree Research Director in a note out Tuesday.
WisdomTree is no stranger to success with Europe ETFs as both the WisdomTree Europe SmallCap Dividend Fund (DFE) and the WisdomTree Europe Hedged Equity Fund (NYSEArca: HEDJ) have over $1 billion in assets under management.
WisdomTree’s other dividend growth ETFs include the WisdomTree Emerging Markets Dividend Growth Fund (DGRE) and the WisdomTree U.S. Dividend Growth Fund (DGRW) . DGRW recently topped $100 million in AUM. [ WisdomTree Dividend Growth ETF Hits $100M in AUM]
WisdomTree International Hedged Dividend Growth Index Top-10 Holdings
Table Courtesy: WisdomTree
Tom Lydon’s clients own shares of HEDJ.
- Investment & Company Information