Among the ETFs that offer reduced exposure to defensive but expensive sectors are the WisdomTree Total Dividend Fund (NYSEArca: DTD). DTD has outpaced VIG by 520 basis points over the past three years while being less volatile. Nearly 41% of the ETF’s combined weight goes to financials, tech and health care. [Different Dividend ETF Methods]
Another option to consider is the new WisdomTree U.S. Dividend Growth Fund (NasdaqGS: DGRW). DGRW, which debuted in late May and already has $57.6 million in assets, focuses on future sources of dividend growth.
Staples receive a weight of 18.2%, but telecom and utilities are nowhere to be found in DGRW. Industrials, tech and consumer discretionary combine for 61% of DGRW’s weight.
WisdomTree U.S. Dividend Growth Fund
Tom Lydon’s clients own shares of DVY.