WisdomTree ETFs Ad: Future of Dividend Growth Funds

Find Introducing: The Future of Dividend Growth, a WisdomTree advertisement about ETF Fund in Barron’s financial newspaper. Find the ETF fund review for your long term investing or financial account.

New ETF Ad

Source: Barron's

Recently, WisdomTree advertises in Barron’s financial magazine about “The Future of Dividend Growth”. You can find this advertisement on Page M52 of Barron’s on September 9th, 2013. They provide diversified selection of dividend ETF funds including large cap fund, small cap fund, and international stocks, etc.

Some of these funds may be suitable for your brokerage account or retirement account (Roths IRA / traditional IRA). Prudent investment strategy is needed especially for long term investment. Check the fund risk and fund performance below as well.

The advertisement is as follows:

Introducing: The Future of Dividend Growth

• DGRW - U.S. Dividend Growth Fund

• DGRS - U.S. SmallCap Dividend Growth Fund

• DGRE - Emerging Markets Dividend Growth Fund

• DNL - Global ex-U.S. Growth Fund

If you dividend uses a traditional growth screen – which only looks backwards at dividend history – many of today’s dividend payers won’t be in your portfolio for years. At WidsomTree, we take a forward-looking approach. While we recognize dividend history, we also factor in current and future dividend potential. 

Learn more at WisdomTree.com

Top Investment Review

As one of the new ETF, WisdomTree US Dividend Growth Fund (DGRW) is an index ETF (Exchange Traded Fund). It tracks the price and yield of the WisdomTree U.S. Dividend Growth Index. It has low expense ratio of 0.28%. The current yield is 1.84%. The current share price is $24.83. It has $52 million of total assets.

The top 5 stocks in its assets are Apple Inc, Microsoft Corp, Proter & Gamble Co, Wal-Mart Stores Inc, and Coca-Cola Co. The top 4 sectors are information technology, industrials, consumer discretionary, and consumer staples.

WisdomTree ETFs have gaining a lot of attention from long term investors. Their approach is unconventional and unique. For an alternative investment, this ETF has potential for income and growth.

If you are looking for small cap investment, WisdomTree US SmallCap Dividend Growth Fund (DGRS) is a great choice for you. This DGRS fund invests mainly in the small-capitalization segment of dividend-paying stocks with growth characteristics. This index fund has a low expense ratio of 0.38%.

This new ETF fund has low assets of $9 million. It has returned 8.04% over the past 1 month, and 12.96% over the past 3 months. The top 3 stocks are Questcor Pharmaceuticals Inc, Adtran Inc, and Con-way Inc.

This DGRS fund is an index fund. It has lower risk than other actively managed fund such as mutual fund or closed end fund or individual stock. As an alternative for growth, this US SmallCap Dividend Growth Fund has potential for long term investment in your brokerage account.

WisdomTree ETFs

Investing in emerging markets sectors has been a challenging for investors in 2013. With high interest rate in horizon due to Fed’s tapering, WisdomTree Emerging Markets Dividend Growth Fund (DGRE) may be a popular choice for your retirement account. This diversified emerging markets stock fund utilizes its assets to purchase a portfolio of emerging market dividend-paying common stocks with growth characteristics.

With an expense ratio of 0.63%, its fund returns are limited hence it is a new ETF fund. The SEC 30-yield is 2.02%. The top 2 holdings are Taiwan Semiconductor Manufacturing Co, and MMC Norilsk Nickel.

For international stocks, you should consider the WisdomTree Global ex-US Growth Fund (DNL) for your financial account. This Global ex-US Growth Fund invests mainly in dividend paying stocks with growth characteristics in the developed and emerging markets outside of the United States. The expense ratio is only 0.58%. Its dividend yield is high, 5.41%.

In term of performance, this international stock fund has returned2.22% over the past 1 year, 2.40% over the past 3 year, and 3.74% over the past 5 year. Ranked with 3 star rating, its worst 1 year total return was occurred in 2008 with -12.86%.

Short term performance has been lagging due to its investment in emerging markets. Over the long term, it should give good return for your account.

Bottom Line

• If you think about long term investing, these WisdomTree ETFs have potential for dividend income and growth.
• The low total assets mean they have wide spread between bid/ask. If you are interested to invest in this ETF, please use limit order only. Don’t use market order hence they are illiquid.
• The fund performance should be consistent overtime hence it is an index fund.