WisdomTree U.S. Quality Dividend Growth ETF Analysis

A new analysis explores the WisdomTree U.S. Quality Dividend Growth ETF (DGRW). The fund has over $14.55 billion in assets and aims for solid performance in large-cap value. Investors may find its expense ratio and dividend yield appealing.

Date: 14-03-2025

AI Rating: 5

Overview
The WisdomTree U.S. Quality Dividend Growth ETF (DGRW), launched in 2013, is a smart beta ETF giving investors access to large-cap value stocks. With a substantial asset base of over $14.55 billion, it stands out in this category.

Performance Metrics
Currently, the ETF has experienced a loss of -2.46% this year but has increased by approximately 6.40% over the past year. Such performance might lead to concern among investors, particularly its year-to-date loss, which shows potential struggles in the current market environment.

Expense Ratio and Dividend Yield
The ETF has an expense ratio of 0.28%, aligning it with many peers. Its 12-month trailing dividend yield is 1.62%, which may be attractive to income-focused investors. The low expense ratio could enable better long-term performance when compared to higher-cost alternatives.

Asset Allocation
About 21.40% of the portfolio is allocated to the Information Technology sector, with notable holdings including Microsoft Corp (MSFT) at 7.75%, Apple Inc (AAPL), and Exxon Mobil Corp (XOM). The top ten holdings make up 36.21% of the total assets, indicating significant concentration that may add risk from specific stock movements.

Comparative Analysis
Compared to alternatives like the IShares Core Dividend Growth ETF (DGRO) and Vanguard Dividend Appreciation ETF (VIG), DGRW’s higher expense ratio may deter cost-conscious investors. However, its focus on fundamentally weighted, dividend-paying stocks may offer opportunities for those looking to outperform the market.

Stocks: MSFT AAPL XOM