The ETF is heavy on cyclical sectors that historically perform well in rising rate environments, including a combined 31% weight to industrial and technology stocks.
For its part, the $204.3 million DGRW, which pays a monthly dividend, has a 20% staples weight, but no utilities exposure at all. Equally as important, DGRW sports 22.1% weight to the tech sector. DGRW’s almost 5% weight to Apple (NasdqGS: AAPL) is one of the largest weights to the iPhone maker among all U.S. dividend ETFs.
Not holding any utilities stocks has not slowed DGRW down this year. The ETF is up almost 12%, a performance that tops some utilities-heavy payout funds.
WisdomTree U.S. Dividend Growth Fund
Chart Courtesy: Yahoo Finance
Tom Lydon’s clients own shares of Apple and DVY. Todd Shriber owns shares of DGRW.