WisdomTree U.S. Dividend Growth Fund (NasdaqGM: DGRW)
Index Dividend Yield: 2.23%
Year-to-date performance: Up 2.7%
Comment: The WisdomTree U.S. Dividend Growth Fund is an ideal way for investors capture dividend growth in a rising rate environment for several reasons. First, the ETF does not hold rate-sensitive telecom and utilities stocks. Second, DGRW is heavily allocated to sectors that, on a historical basis, have been sturdy performers when rates rise.
That includes consumer discretionary and technology, a combined 39.7% of DGRW’s weight. Consumer discretionary is one of just two sectors (financial services is the other) expected to deliver double-digit dividend growth this year.
DGRW has added over $121 million of its $417.6 million in assets under management this year, signaling rapid growth, and the ETF pays its dividend on a monthly basis.