WisdomTree U.S. Quality Dividend Growth Fund (DGRW)

ETF WisdomTree U.S. Quality Dividend Growth Fund (DGRW) Overview

Profile:

DGRW is an actively managed exchange-traded fund (ETF) focusing on large-cap U.S. companies with a track record of consistent dividend growth. The fund uses a combination of fundamental and quantitative analysis to select stocks with strong financials, competitive advantages, and a history of increasing dividend payments. DGRW primarily invests in the financial services, technology, and consumer discretionary sectors.

Objective:

The fund's primary objective is to provide investors with long-term capital appreciation and current income in the form of dividends. The fund seeks to achieve this objective by investing in companies that are expected to grow earnings and dividends over time.

Issuer:

DGRW is offered by WisdomTree Investments, Inc., an asset management firm known for its innovative and thematic ETFs. WisdomTree has a strong reputation in the market and is known for its expertise in quantitative and factor-based investing.

Reputation and Reliability:

WisdomTree has a solid reputation in the ETF industry with over $72.8 billion in AUM as of November 2023. The company is known for its rigorous research and disciplined investment process.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in quantitative investing and dividend selection. The team is led by Jeremy Schwartz, WisdomTree’s Global Head of Equity Research, and Bradley Krom, Global Head of Quantative Equity.

Market Share:

DGRW has a market share of approximately 1.15% within the Equity - Growth Style - US - Large Cap Value category.

Total Net Assets:

As of June 2023, DGRW had total net assets of approximately $2.91 billion.

Moat:

DGRW's competitive advantages include:

• Active management: The fund employs an active management approach that allows for more flexibility in selecting stocks with the desired risk and return characteristics.
• Focus on quality dividend-paying companies: The fund's focus on companies with strong financial positions and consistent dividend growth histories helps mitigate risk and generate income for investors.
• Lower expenses: The fund has an expense ratio of 0.28%, which is lower than most actively managed funds in its category.

Financial Performance:

Since its inception in 2006, DGRW has generated an annualized return of 11.33%. This compares favorably to the S&P 500 Index's annualized return of 9.89% over the same period.

Benchmark Comparison:

DGRW has outperformed its benchmark, the Russell 1000 Value Index, over the last 3, 5, and 10-year periods.

Growth Trajectory:

The fund has experienced steady growth in assets and net income in recent years. This indicates growing investor interest in its investment strategy.

Liquidity:

DGRW has an average daily trading volume of approximately 230,000 shares, making it a highly liquid ETF. The bid-ask spread is typically tight, around 0.03%.

Market Dynamics:

DGRW's market environment is affected by factors such as economic growth, interest rate policies, investor sentiment towards dividend-paying stocks, and specific sector performance within the U.S. market.

Competitors:

Key competitors in the same category include

• iShares Core Dividend Growth ETF (DGRO): Market Share - 2.13%
• Vanguard Dividend Appreciation ETF (VIG): Market Share - 15.24% -Schwab U.S. Dividend Equity ETF (SCHD): Market Share - 8.35%

Expense Ratio:

DGRW has an expense ratio of 0.28%.

Investment approach and strategy:

DGRW utilizes a quantitative and fundamental stock selection approach. The fund seeks companies with a history of sustainable dividend payments, solid financials, and potential for future growth. It employs quantitative models and fundamental analysis to identify potential investments.

Composition:

The fund primarily invests in U.S. large-cap stocks across various sectors. Its top holdings include Microsoft (MSFT), Johnson & Johnson (JNJ), and Apple (AAPL).