Although defensive sectors, such as consumer staples and utilities, are frequently considered pricey compared to the broader market, that does not mean DHS skimps on those income investor favorites. In fact, the ETF’s current weight to staples, 15.1%, is in line with the fund’s weight to that group over the past year while utilities were modestly reduced to 11.4% to 10.6%. [Utilities ETFs Look Expensive]
One sector that was dramatically reduced in DHS was technology, which outperformed the S&P 500 in 2014.
“The Information Technology sector also saw a significant change within WTHYE; its weight was lowered by 9.2%. The sector saw significant outperformance over the period but exhibited below-average dividend growth, weakening the relationship between dividends and price. Two noticeable deletions from the Index were Microsoft and Intel, representing decreases of 5.4% and 2.9%, respectively. Between annual screening dates, Microsoft’s dividends per share increased 10.7%, but its price increased 25.4%, lowering its dividend yield by 14 bps. Intel’s dividends per share increased by 6.7%, but its price increased by 56.3%, lowering its dividend yield by 135 bps,” according to Zimmerman.
WisdomTree Equity Income Fund
