Innovative exchange traded fund provider WisdomTree Investments is hoping it has another winner with a new ETF focused on dividend-paying stocks with growth traits.
The New York-based asset manager on Wednesday launched WisdomTree U.S. Dividend Growth Fund (DGRW).
The fund charges an expense ratio of 0.28%.
“Investors are hungry for income in this low interest rate-, low yield-environment,” said Jeremy Schwartz, director of research at WisdomTree. “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 company said the new ETF will have heavy exposure to the technology sector.
“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 added. “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.”
The firm has enjoyed phenomenal success with WisdomTree Japan Hedged Equity (DXJ) as a way to invest in soaring Japanese stocks while negating the impact of a weaker yen. DXJ is the best-selling ETF of 2013, raking in over $7 billion, taking total assets to nearly $11 billion. The company also manages dividend-themed ETFs such as WisdomTree Emerging Markets Equity Income (DEM).
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