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Is WisdomTree Global ex-U.S. Quality Dividend Growth ETF (DNL) a Strong ETF Right Now?
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A smart beta exchange traded fund, the WisdomTree Global ex-U.S. Quality Dividend Growth ETF (DNL - Free Report) debuted on 06/16/2006, and offers broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Managed by Wisdomtree, DNL has amassed assets over $478.37 million, making it one of the larger ETFs in the World ETFs. This particular fund, before fees and expenses, seeks to match the performance of the WisdomTree Global ex-U.S. Quality Dividend Growth Index.
The WisdomTree Global ex-U.S. Quality Dividend Growth Index is a fundamentally weighted index that measures the performance of dividend paying stocks with growth characteristics in the developed and emerging markets outside of the United States.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.42%, making it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 2.14%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Us Dollar accounts for about 94.72% of total assets, followed by Taiwan Semiconductor Manufacturing Co Ltd and Industria De Diseno Textil (ITX).
DNL's top 10 holdings account for about 127.89% of its total assets under management.
Performance and Risk
So far this year, DNL has added about 8.19%, and was up about 0.05% in the last one year (as of 08/01/2025). During this past 52-week period, the fund has traded between $32.16 and $40.84.
The fund has a beta of 0.94 and standard deviation of 16.98% for the trailing three-year period, which makes DNL a medium risk choice in this particular space. With about 317 holdings, it effectively diversifies company-specific risk .
Alternatives
WisdomTree Global ex-U.S. Quality Dividend Growth ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. iShares Core Dividend Growth ETF has $32.57 billion in assets, Vanguard Dividend Appreciation ETF has $93 billion. DGRO has an expense ratio of 0.08% and VIG changes 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is WisdomTree Global ex-U.S. Quality Dividend Growth ETF (DNL) a Strong ETF Right Now?
A smart beta exchange traded fund, the WisdomTree Global ex-U.S. Quality Dividend Growth ETF (DNL - Free Report) debuted on 06/16/2006, and offers broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Managed by Wisdomtree, DNL has amassed assets over $478.37 million, making it one of the larger ETFs in the World ETFs. This particular fund, before fees and expenses, seeks to match the performance of the WisdomTree Global ex-U.S. Quality Dividend Growth Index.
The WisdomTree Global ex-U.S. Quality Dividend Growth Index is a fundamentally weighted index that measures the performance of dividend paying stocks with growth characteristics in the developed and emerging markets outside of the United States.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.42%, making it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 2.14%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Us Dollar accounts for about 94.72% of total assets, followed by Taiwan Semiconductor Manufacturing Co Ltd and Industria De Diseno Textil (ITX).
DNL's top 10 holdings account for about 127.89% of its total assets under management.
Performance and Risk
So far this year, DNL has added about 8.19%, and was up about 0.05% in the last one year (as of 08/01/2025). During this past 52-week period, the fund has traded between $32.16 and $40.84.
The fund has a beta of 0.94 and standard deviation of 16.98% for the trailing three-year period, which makes DNL a medium risk choice in this particular space. With about 317 holdings, it effectively diversifies company-specific risk .
Alternatives
WisdomTree Global ex-U.S. Quality Dividend Growth ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. iShares Core Dividend Growth ETF has $32.57 billion in assets, Vanguard Dividend Appreciation ETF has $93 billion. DGRO has an expense ratio of 0.08% and VIG changes 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.