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Is WisdomTree U.S. MidCap Dividend ETF (DON) a Strong ETF Right Now?
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Designed to provide broad exposure to the Style Box - Mid Cap Value category of the market, the WisdomTree U.S. MidCap Dividend ETF (DON - Free Report) is a smart beta exchange traded fund launched on 06/16/2006.
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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well 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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Wisdomtree. It has amassed assets over $3.82 billion, making it one of the larger ETFs in the Style Box - Mid Cap Value. Before fees and expenses, DON seeks to match the performance of the WisdomTree U.S. MidCap Dividend Index.
The WisdomTree U.S. MidCap Dividend Index is a fundamentally weighted index that measures the performance of the mid-capitalization segment of the US dividend-paying market.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.38% for this ETF, which makes it on par with most peer products in the space.
DON's 12-month trailing dividend yield is 2.27%.
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.
This ETF has heaviest allocation in the Financials sector - about 25.2% of the portfolio. Industrials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Evergy Inc (EVRG) accounts for about 1.48% of the fund's total assets, followed by Cna Financial Corp (CNA) and Gaming & Leisure Porperties Inc (GLPI).
The top 10 holdings account for about 8.43% of total assets under management.
Performance and Risk
The ETF return is roughly 5.14% and is up roughly 7.61% so far this year and in the past one year (as of 09/19/2025), respectively. DON has traded between $43.28 and $55.55 during this last 52-week period.
DON has a beta of 0.94 and standard deviation of 17.78% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 330 holdings, it effectively diversifies company-specific risk .
Alternatives
WisdomTree U.S. MidCap Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Russell Mid-Cap Value ETF (IWS) tracks Russell MidCap Value Index and the Vanguard Mid-Cap Value ETF (VOE) tracks CRSP U.S. Mid Cap Value Index. iShares Russell Mid-Cap Value ETF has $14.26 billion in assets, Vanguard Mid-Cap Value ETF has $19 billion. IWS has an expense ratio of 0.23% and VOE changes 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Mid Cap Value
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 U.S. MidCap Dividend ETF (DON) a Strong ETF Right Now?
Designed to provide broad exposure to the Style Box - Mid Cap Value category of the market, the WisdomTree U.S. MidCap Dividend ETF (DON - Free Report) is a smart beta exchange traded fund launched on 06/16/2006.
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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well 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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Wisdomtree. It has amassed assets over $3.82 billion, making it one of the larger ETFs in the Style Box - Mid Cap Value. Before fees and expenses, DON seeks to match the performance of the WisdomTree U.S. MidCap Dividend Index.
The WisdomTree U.S. MidCap Dividend Index is a fundamentally weighted index that measures the performance of the mid-capitalization segment of the US dividend-paying market.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.38% for this ETF, which makes it on par with most peer products in the space.
DON's 12-month trailing dividend yield is 2.27%.
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.
This ETF has heaviest allocation in the Financials sector - about 25.2% of the portfolio. Industrials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Evergy Inc (EVRG) accounts for about 1.48% of the fund's total assets, followed by Cna Financial Corp (CNA) and Gaming & Leisure Porperties Inc (GLPI).
The top 10 holdings account for about 8.43% of total assets under management.
Performance and Risk
The ETF return is roughly 5.14% and is up roughly 7.61% so far this year and in the past one year (as of 09/19/2025), respectively. DON has traded between $43.28 and $55.55 during this last 52-week period.
DON has a beta of 0.94 and standard deviation of 17.78% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 330 holdings, it effectively diversifies company-specific risk .
Alternatives
WisdomTree U.S. MidCap Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Russell Mid-Cap Value ETF (IWS) tracks Russell MidCap Value Index and the Vanguard Mid-Cap Value ETF (VOE) tracks CRSP U.S. Mid Cap Value Index. iShares Russell Mid-Cap Value ETF has $14.26 billion in assets, Vanguard Mid-Cap Value ETF has $19 billion. IWS has an expense ratio of 0.23% and VOE changes 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Mid Cap Value
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.