WisdomTree US Quality Dividend Growth UCITS ETF

Issuer: WisdomTree

Asset Class: Equity

TER: 33bps

Trading Currency: USD

Pays Income: False

Listing Date: 08 Jun 2016

Ticker: DGRA

ISIN: IE00BZ56RG20

The fund offers a strategic approach to investing in the US equity market by focusing on high-quality, dividend-paying companies poised for sustainable growth. Its underlying index employs a proprietary methodology that screens for businesses with strong fundamentals, specifically targeting those with high long-term earnings growth expectations, return on equity, and return on assets. This dual emphasis on both quality and growth factors helps to build a portfolio of durable companies capable of not only paying but also increasing their dividends over time. By weighting constituents based on the cash dividends they are projected to pay, the strategy aims to provide a more attractive income profile and potentially lower valuation risk compared to conventional market-cap weighted benchmarks.

This investment is designed for those looking to build a core US equity position with a potentially more defensive and quality-oriented profile. The focus on financially sound companies may provide a degree of resilience during economic downturns and market volatility. Simultaneously, the inclusion of a growth screen ensures the portfolio is not solely comprised of high-yield, low-growth 'value traps'. Instead, it seeks to capture both capital appreciation and a growing income stream, making it suitable for long-term investors aiming for total return. The strategy provides a smart-beta alternative to broad market exposure, offering a rules-based method to access some of the most robust companies within the United States.