On the developed market side, the U.K. and Switzerland, two of Europe’s steadiest dividend growth markets, combine for 25.5% of DNL’s weight. European countries combine for about half of DNL’s weight, an important consideration when noting WisdomTree’s European dividend stream is up 12.3% year-over-year, according to the issuer.
DNL tracks the fundamentally-weighted WisdomTree Global ex-U.S. Dividend Growth Index (WTGDXG), which encompasses earnings expectations as well as return on assets and equity in its weighting methodology. The index had a dividend yield of 3.1% and a P/E ratio of 13.2 as of Aug. 1, according to issuer data. That compares favorably to the S&P 500 with a dividend yield around two and P/E north of 16.
DNL’s emphasis on return on assets and return on equity ensures ample exposure to health care, consumer staples and industrial names. Those sectors have been among the sturdiest European dividend offerings and combine for 42% of DNL’s weight.
WisdomTree Global ex-U.S. Dividend Growth Fund
