WisdomTree Global ex-U.S. Quality Dividend Growth Fund (DNL)

ETF WisdomTree Global ex-U.S. Quality Dividend Growth Fund (DNL) Overview:

Profile:

This ETF invests in large-cap stocks from developed markets outside the U.S. with a focus on quality companies paying growing dividends. It uses a multi-factor approach, prioritizing factors like profitability, strong balance sheets, consistent dividend growth, and reasonable valuations. DNL holds around 300 stocks with a current sector allocation of 23% Financials, 18% Industrials, 15% Consumer Discretionary, 13% Information Technology, 12% Healthcare, and 6% Utilities.

Objective:

The primary goal of DNL is to provide investors with long-term capital growth and income through exposure to a diversified portfolio of high-quality international dividend-paying stocks.

Issuer:

DNL is issued by WisdomTree Investments, a leading global asset manager with over $83 billion in assets under management (as of January 31, 2023). WisdomTree has a strong reputation for its innovative and cost-effective ETF products.

Management:

The portfolio is managed by a team of experienced investment professionals with expertise in global equity investing. The team utilizes a bottom-up research process, focusing on individual company fundamentals and growth prospects.

Market Share:

DNL has a market share of approximately 0.7% in the international dividend-paying ETF category.

Total Net Assets:

As of November 15, 2023, DNL has approximately $1.4 billion in total net assets.

Moat:

DNL's competitive advantages include its unique focus on international quality dividend-paying stocks, its well-defined multi-factor investment approach, and the experience of its management team.

Financial Performance:

• Year-to-date: -12.02%
• 1-year: -17.76%
• 3-year (annualized): 1.69%
• 5-year (annualized): 6.84%

Benchmark Comparison:

DNL has underperformed its benchmark, the MSCI EAFE Index, over the past 1 and 3 years. However, it has outperformed over the 5-year period.

Growth Trajectory:

The long-term growth trajectory for international dividend-paying stocks remains positive. However, near-term prospects might be impacted by global economic factors.

Liquidity:

• Average Daily Volume: 275,000 shares
• Bid-Ask Spread: 0.14%

Market Dynamics:

Market dynamics affecting DNL include global economic conditions, interest rate fluctuations, and emerging market performance.

Competitors:

• iShares International Select Dividend ETF (IDV) - 7.5% market share
• SPDR S&P International Dividend ETF (DWX) - 6.8% market share
• Vanguard International Dividend Appreciation ETF (VIG) - 3.9% market share

Expense Ratio:

0.45%

Investment Approach & Strategy:

DNL follows a passively managed strategy, tracking the WisdomTree Global ex-U.S. Quality Dividend Growth Index. It invests in a diversified portfolio of large-cap stocks from developed markets outside the U.S., focusing on companies with high dividend yields, sustainable dividend growth, quality financials, and attractive valuations.

Key Points:

• Provides exposure to international dividend-paying stocks.
• Employs a multi-factor approach for stock selection.
• Offers low-cost diversification.
• Pays a quarterly dividend.
• Suitable for long-term investors seeking income and growth.

Risks:

• Market Risk: The ETF's value fluctuates with the performance of the underlying stocks.
• Dividend Risk: Dividend payments are not guaranteed and can be suspended or reduced.
• Currency Risk: Changes in exchange rates can impact the ETF's value.
• International investing risks: Political and economic instability in international markets.

Who Should Consider Investing:

Investors seeking long-term capital growth and income with exposure to international dividend-paying stocks can consider DNL. It is suitable for investors with a moderate to high risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI:

7.5/10

DNL receives a good overall rating based on its fundamentals. The rating considers factors like financial health, market position, and future prospects. The ETF benefits from a strong and experienced issuer, a well-defined investment approach, and a good historical performance. However, the recent underperformance relative to its benchmark and the inherent risks associated with international investing are factors to consider.

Resources and Disclaimers:

• WisdomTree Website: https://www.wisdomtree.com/products/equity/etf/dnl
• ETF.com: https://www.etf.com/etfanalytics/etf-profile/DNL

Disclaimer: This information is for informational purposes only and should not be construed as financial advice. Please consult with a professional financial advisor before making any investment decisions.