ETF providers continue to slice and dice the market with dividend strategies.
On Thursday, WisdomTree Investments (WETF) listed a new ETF geared to invest in U.S. small-cap stocks that pay high dividends.
WisdomTree U.S. SmallCap Dividend Growth Fund (DGRS) is designed to provide exposure to small-cap dividend-paying stocks with growth characteristics. It charges an expense ratio of 0.38%.
“DGRS is the first, and only, strategy focusing on the U.S. market’s small-cap dividend growth leaders, a segment we believe offers some of the most attractive dividend growth opportunities,” said Jeremy Schwartz, director of research at WisdomTree.
“Many assume that high quality, dividend growth opportunities are confined to blue chip, large-cap stocks,” he added. “But in an environment where the U.S. economy is improving and interest rates are beginning to rise, small caps, more closely tied to the U.S. economy, will likely become more attractive than large caps, which are more globally sensitive.”
The firm manages the existing WisdomTree SmallCap Dividend Fund (DES), which holds assets of about $793 million.
It appears the new small-cap dividend fund DGRS will tilt to growth stocks, while DES favors value stocks.
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
- WisdomTree Investments