Related: Bet on Growth, Not Yield, With Trending Dividend ETF
Eight of the ten largest holdings in WisdomTree US Quality Dividend ETF are CFRA Buy or Strong Buy recommendations and a similar number have Quality Rankings of A- or above. These include Amgen (AMGN), Home Depot (HD), McDonald’s (MCD) and PepsiCo (PEP). DGRW also ranks favorably for the strong S&P Global credit ratings of many of these and other constituents.
Also contributing favorably to CFRA’s Overweight ranking for this ETF are bullish technical trends, as DGRW is above its 200-day moving average. Meanwhile, DGRW’s 0.28% net expense ratio and $0.01 bid/ask spread contribute favorably to the cost factors of this ETF. DGRW trades, on average, 111,000 shares per day. The ETF gathered $425 million of new money thus far in 2017 and now has $1.7 billion in assets. CFRA thinks dividend-growth oriented investors should look further at this offering.
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Todd Rosenbluth is Director of ETF & Mutual Fund Research at CFRA.