For investors seeking momentum, WisdomTree U.S. Total Dividend Fund (DTD - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 16.5% from its 52-week low price of $74.84/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:
DTD in Focus
DTD provides exposure to the U.S. all-cap equity from a broad range of dividend-paying companies. It has key holdings in information technology, consumer staples, financials, healthcare and industrials. Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) and Exxon Mobil (XOM - Free Report) are the top three firms in the basket. It charges 28 basis points in annual fees (see: all the Large Cap ETFs here).
Why the Move?
The dividend corner of the broad U.S. stock market has been an area to watch lately, given that volatility and uncertainty have raised the appeal for dividend investing. In such a scenario, dividend-paying securities are the major sources of consistent income for investors when returns from the equity market are at risk. This is because dividend products offer the best combination of safety in the form of payouts and stability as these are less immune to the large swings in stock prices.
More Gains Ahead?
Currently, DTD 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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