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Mid Cap Dividend ETF (DON) Hits New 52-Week High

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For investors seeking momentum, WisdomTree MidCap Dividend Fund (DON - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 24.2% from its 52-week low price of $79.40/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:

DON in Focus

DON provides exposure to the mid-cap segment of the U.S. dividend paying stocks. Holding 409 stocks in its basket, the product is widely diversified across each component with each holding less than 1.8% of the assets. The fund has key holdings in consumer discretionary, real estate, industrials, utilities and materials. It charges 38 basis points in annual fees (see: all the Mid Cap ETFs here).

Why the Move?

The mid cap space of the broad U.S. stock market has been an area to watch lately, given that the U.S. bourses are scaling multiple highs despite a slew of worries. March rate hike concerns, growing fears over U.S. trade policies, doubt over Trump’s promised plan implementation and expensive valuation have sparked off risk aversion. In this scenario, mid-cap dividend funds offer the best combination of growth and safety in the form of payouts as well as stability as these are less immune to the large swings in stock prices.

More Gains Ahead?

Currently, DON has a Zacks ETF Rank of 3 or ‘Hold’ rating 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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