Another option to consider is the $451.3 million WisdomTree Total Dividend Fund (NYSEArca: DTD), which S&P Capital IQ also rates overweight. DTD yields 2.3% and has a beta of 0.82, according to S&P Capital IQ.
An interesting factoid about DTD is that the ETF’s top-10 holdings, which combine for about 23% of the ETF’s weight, include nine of the 10 largest U.S. dividend payers. DTD allocates a combined 11.5% of its weight to telecom and utilities stocks, but the fund’s sensitivity to interest rates is diminished by allocating over a third of its weight to technology, industrial and consumer discretionary names, three of the best sectors when interest rates rise. [Dividend Stocks Beating Broad Market]
DTD’s tech weight is more than the double the average weight of 6% allocated to the sector by the three largest U.S. dividend ETFs. Since the March 9, 2009 market bottom, DTD is up 238.2% compared to 184.6% for VIG.
“The good news for U.S. dividend-focused investors is there are a lot of fundamentally strong securities to choose from,” added S&P Capital IQ.
WisdomTree Total Dividend Fund
