While defensive sectors currently look aggressive on valuation, DHS tempers that scenario and some of its potential vulnerability to rising rates with a combined 31% weight to attractively valued financial services and technology names, two sectors expected to perform well if rates do rise. Not to mention DHS soared 24.5% last year when Treasury yields spiked.
DHS does not emphasize dividend increase in its weighting methodology, but the ETF’s top-10 holdings include Johnson & Johnson (NYSE: JNJ) and Procter & Gamble (NYSE: PG), companies with two of the longest dividend increase streaks in the U.S. DHS’ top-10 lineup also includes AT&T (NYSE: T) and Chevron (NYSE: CVX), which are working on multi-decade dividend increase streaks of their own.
DHS has taken in $170.4 million of its $1 billion in AUM this year and is the eleventh WisdomTree ETF to top $1 billion in assets. That group includes seven other dividend ETFs. Like the other U.S.-focused dividend ETFs from WisdomTree, DHS pays its dividend on a monthly basis. [Ten WisdomTree ETFs Top $1B in AUM]
WisdomTree Equity Income Fund
ETF Trends editorial team contributed to this post.