WisdomTree Eurozone Quality Dividend Growth UCITS ETF

Issuer: WisdomTree

Asset Class: Equity

TER: 29bps

Trading Currency: EUR

Pays Income: False

Listing Date: 05 Jul 2016

Ticker: EGRA

ISIN: IE00BZ56TQ67

This actively managed fund offers a distinct approach to European equity investing, targeting a specific segment of the market for total return. By forgoing a traditional benchmark, the portfolio managers have the flexibility to seek out what they identify as the most promising opportunities within the Eurozone. The core strategy is to invest in high-quality, dividend-paying companies that also exhibit strong growth characteristics. This dual focus aims to provide a balance between current income generation and long-term capital appreciation, appealing to investors looking for a robust core holding for their European allocation.

The investment process is driven by a proprietary, rules-based model that screens a universe of Eurozone companies. The methodology prioritizes companies demonstrating strong fundamentals, primarily measured through quality metrics like high return on equity and return on assets, which indicate profitability and operational efficiency. Concurrently, it assesses growth potential by analysing long-term earnings growth expectations. This systematic screening narrows the field to a basket of what are considered fundamentally sound businesses. The resulting portfolio is then weighted based on the aggregate cash dividends paid, emphasizing companies with a strong track record of returning value to shareholders.

This product is designed for investors seeking a targeted, factor-based exposure to the Eurozone equity market. It diverges from passive, market-cap-weighted strategies by actively tilting towards the quality and growth factors, which have historically been associated with enhanced risk-adjusted returns over the long term. The fund’s focus on established dividend-payers provides a layer of fundamental stability, while the growth screen ensures the portfolio is not overly concentrated in slower-growing, high-yield 'value traps'. As an accumulating share class, all dividends are automatically reinvested, facilitating the power of compounding for long-term investors.