An Advisor’s Guide to Investing in U.S. Dividends With WisdomTree

Karrie Gordon
3 min read
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This article was originally published on ETFTrends.com.

The first of a string of interest rate increases has been enacted by the Federal Reserve, raising rates by 0.25% for the first time in years. With talks of a possible 0.50% increase soon, advisors are seeking alternative investments for the fixed income portions of their portfolios, and many are turning to dividends as one possible solution. WisdomTree offers a suite of dividend ETFs for investors looking for exposure to U.S. equities, whether within core allocations or with a value focus.

U.S. Core Equity Dividend Funds

  • The WisdomTree US Quality Dividend Growth Fund (DGRW) invests in large-cap U.S. equity companies that are growing their dividends and applies both quality and growth screens to securities. The fund seeks to track the WisdomTree U.S. Quality Dividend Growth Index, a fundamentally weighted index based on dividend projections for the next year, that screens companies for long-term growth expectations, return on equity, and return on assets. DGRW has an expense ratio of 0.28%.

  • The WisdomTree US SmallCap Quality Dividend Growth Fund (DGRS) invests in small-cap U.S. equity companies that pay dividends and display growth characteristics and applies a quality and growth screen to securities. The fund seeks to track the WisdomTree U.S. SmallCap Quality Dividend Growth Index, a fundamentally weighted index based on dividend projections for the next year, that screens U.S. small-cap companies for long-term earnings growth expectations, return on equity, and return on assets. DGRS has an expense ratio of 0.38%.

U.S. Value Dividend Funds

  • The WisdomTree U.S. LargeCap Dividend Fund (DLN) invests in large-cap companies that pay dividends within the U.S. equity market. The fund seeks to track the WisdomTree U.S. LargeCap Dividend Index, a fundamentally weighted index based on dividend projects for the next year, and contains the 300 largest dividend-paying companies by market cap. DLN has an expense ratio of 0.28%.

  • The WisdomTree U.S. Total Dividend Fund (DTD) invests in companies from all market caps that pay dividends within the U.S. equity market. The fund seeks to track the WisdomTree U.S. Dividend Index, a fundamentally weighted index based on dividend projections for the next year, and is comprised of U.S. companies that pay dividends regularly. DTD carries an expense ratio of 0.28%.

  • The WisdomTree U.S. High Dividend Fund (DHS) invests in high dividend-yielding U.S. equity companies and seeks to track the WisdomTree U.S. High Dividend Index. The index contains the top 30% of companies by dividend yield from the WisdomTree U.S. Dividend Index, and the index is dividend-weighted based on projected dividends for the next year. DHS has an expense ratio of 0.38%.

  • The WisdomTree U.S. Midcap Dividend Fund (DON) invests in dividend-paying mid-cap companies from within the U.S. equity market. The fund seeks to track the WisdomTree U.S. MidCap Dividend Index, an index comprised of the top 75% of dividend-paying companies by market cap that make up the WisdomTree U.S. Dividend Index after the 300 largest companies have been removed. The index is fundamentally weighted based on dividend projections for the next year, and DON carries an expense ratio of 0.38%.

  • The WisdomTree U.S. SmallCap Dividend Fund (DES) invests in dividend-paying small-cap companies from U.S. equity markets. The fund seeks to track the WisdomTree U.S. SmallCap Dividend Index, an index comprised of the bottom 25% of dividend-paying companies by market cap that make up the WisdomTree U.S. Dividend Index after the 300 largest companies have been removed. The index is fundamentally weighted based on dividend projections for the next year, and DES carries an expense ratio of 0.38%.

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