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WisdomTree U.S. Quality Dividend Growth ETF (DGRW) - free report >>
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WisdomTree U.S. Quality Dividend Growth ETF (DGRW) - free report >>
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Dividend ETF (DGRW) Hits New 52-Week High
For investors seeking momentum, WisdomTree U.S. Quality Dividend Growth Fund (DGRW - Free Report) is probably on radar. The fund just hit a 52-week high, and is up about 46% from its 52-week low price of $41.06/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
DGRW in Focus
This fund provides exposure to U.S. dividend-paying stocks with both growth and quality characteristics like long-term earnings growth expectations, and three-year historical averages for return on equity and return on assets. It has key holdings in information technology, health care, industrials and consumer staples, each with a double-digit allocation. The fund charges 28 bps in annual fees (see: all the Large Cap Value ETFs here).
Why the Move?
The dividend corner of the broad investing world has been an area to watch lately, given the bouts of volatility triggered by surging yields, tax hike fears and another wave of COVID-19 infections in India. Against such a backdrop, dividend-paying securities are a major source of consistent income for investors though these do not offer dramatic price appreciation. This is especially true as the companies that pay dividends generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis. In particular, dividend growth ETFs like DGRW have superior fundamentals that make dividend growth a quality and promising investment for the long term.
More Gains Ahead?
Currently, DGRW has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
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