Whenever an ETF crosses an AUM threshold, markets take notice. Investors and advisors may want to take particular notice of the quality growth ETF DGRW. The WisdomTree US Quality Dividend Growth Fund (DGRW) rose above $10 billion in total AUM per VettaFi over the last few weeks. The strategy, which also had its tenth birthday earlier this year, may be worth considering looking ahead to 2024.
DGRW sat at $10.1 billion as of November 7, with the strategy’s AUM rising more than $500 million over the last month. Almost the entirety of that rise owes to price influence for the quality growth ETF’s holdings. The strategy also added about $180 million in net inflows over the last month per VettaFi.
See more: “As Rate Battle Settles, Eye a Quality Growth ETF“
What kind of stocks does DGRW invest in? The strategy focuses on dividend growth rather than backward-looking dividend increases, looking to identify firms likely to see rising dividends. It combines factors like forward-looking dividend estimates with historical return on assets and return on equity.
The quality growth ETF charges 28 basis points (bps) and returned 10.5% over the last three years. It has also outperformed both its ETF Database Category and FactSet Segment average over the last month. Its approach has led it to not only hold firms like the megacap tech names but also names like Broadcom Inc. (AVGO), which works in the semiconductor space.
Not only has DGRW passed that notable AUM threshold, the strategy has sent a technical buy signal per YCharts. The ETF saw its price rise above its 50-day simple moving average as of November 7.
With rising rates solidifying a higher-for-longer regime entering the next year, eyeing more resilient firms may appeal. By focusing on dividends as well as growth, DGRW may be able to navigate such a situation next year and may be worth eyeing in the months ahead.
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