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Mid-Cap Dividend ETF (DON) Hits New 52-Week High

Sanghamitra Saha
Archer-Daniels-Midland (ADM) seems to be a good value pick, as it has decent revenue metrics to back up its earnings, and is seeing solid earnings estimate revisions as well.
Archer-Daniels-Midland (ADM) seems to be a good value pick, as it has decent revenue metrics to back up its earnings, and is seeing solid earnings estimate revisions as well.

For investors seeking momentum, WisdomTree U.S. MidCap Dividend Fund DON is probably on the radar now. The fund just hit a 52-week high and is up nearly 16% from its 52-week low price of $31.65/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed.

DON in Focus      

The fund tracks the performance of dividend-paying mid-cap companies in the U.S. equity market. Consumer Discretionary (21.98%), Real Estate (16.17%), and Industrials (14.92%) are the top three sectors. The product charges 38 bps in fees (see Mid Cap ETFs here).

Why the Move?  

Mid-caps are an often-overlooked investing option. These securities are viewed as big and safe compared to the highly volatile small-cap exposure. But when compared to the stability of large caps, these are relatively risky bets.

Mid-cap stocks are more domestically-focused than large caps and are thus less exposed to geopolitical risks and negative currency translations. Also, after the solid rally on trade war tensions, most small-cap ETFs are trading at a rich valuation now. Such overvaluation concerns have probably led investors toward this mid-cap ETF to tap the solid U.S. economic growth potential.

More Gains Ahead?

It seems that the fund will perform decently in the near term given a positive weighted alpha of 12.10.

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WISTR-US MC DV (DON): ETF Research Reports
 
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